So, here’s the scoop, everyone! When it comes to broker options trading, we’ve got all kinds of systems at play, but they usually come down to analyzing candlestick patterns and adding some cool tools to understand the market and spot price trends. We traders often go with the main trend, thinking it’s the safer choice. But let me tell you, there’s a whole universe of advanced trading strategies out there, and you've got to be on your game to avoid a disaster – you know, jumping into a contract right when the market is about to drop.
Preparing for Trading
Luckily for us, the Pocket Option broker offers a wide range of tools for technical analysis. If you’re signed up on the platform, go ahead and add those graphical lines to your indicator in MT5.
For trading with Doubling Trend, just choose a volatile asset and set the timeframe between 1 to 5 minutes. Don’t forget to add the RSI oscillator. You can find it in the menu: Insert/Indicators/Oscillators.
Once you activate it, the tool will show up on your screen. Just remember that its signal line moves around like the price chart. And here’s the thing – they generally work well together, but the RSI is usually a bit ahead. That’s the strategy with this technique.
I recommend keeping an eye on that trend line break on the oscillator. To make connections, draw a line connecting the RSI’s highs or lows, depending on the flow.
Oh, and don’t forget to use the "draw the trend line" tool located at the top of MT5, right above your timeframe options.
Trading with the Doubling Trend
Alright, you’re all geared up! Let’s dive into it. When’s the perfect moment to buy? You need to recognize the clearest signals indicating the end of a trend and its potential reversal. Here’s a tip – it’s all about that trend line breakthrough in the RSI window.
So, when the resistance line breaks, that’s when you grab that CALL option.
If the support line gets hit, then it’s time for a PUT contract.
Don’t skimp on the expiration time – keep it longer than the time it takes for 4 candles to form.Otherwise, you risk getting kicked out on a retest of the trend line price.
To wrap things up, let’s cover some basics. A double top? That’s a bearish reversal pattern, folks. It forms with two peaks right above a support level, also known as the neckline. The first peak rises after a bull run and then pulls back to the neckline. After reaching this level, the bulls jump back in to create the second peak. On the flip side, we have a double bottom, which is a bullish reversal pattern and features two lows below a resistance level – that, too, is called the neckline. The first low appears right after a bear run, pauses for a bullish bounce back to the neckline, which sets the first low.
You know what? The Doubling Trend strategy might seem a bit odd for many traders. But those in the know understand that its signals often outperform those classical systems! For those seeking to expand their skills, exploring the comprehensive trading strategies on the PocketOption broker platform can be invaluable.
