You know, the success of my trading strategy is all on me. It really depends on how I put it into action along with other technical analysis tools. I'm talking about things like Bollinger Bands, SMA, and candlestick patterns to read the trends clearly. The more positive signals I gather for a trade, the better my chances of making a profit. Sure, some days the signals feel like they can predict price movements perfectly, but then there are moments when they seem completely off. Just like any other tool in my trading toolkit, depending on just one indicator is like going into a battle without enough weapons.
Now, let’s dive into the Trend strategy I'm using for my short-term trading. All the cool tools and indicators are already set up in the comprehensive pocket option platform for diverse strategies, just waiting for me to get started.
Setting Up My Indicators for the Trend
For my “Trend” strategy, I start with a Japanese candlestick chart set to a five-minute timeframe. I can choose any high-activity stock or currency to go with the flow. But let’s skip over the flat assets—they’re just not useful for my strategy.
Out of all the indicators, I’ll be using Bollinger Bands and the Relative Strength Index (RSI) to enhance my chart. I keep it straightforward and stick with the default settings. I just find the indicators in Pocket Option’s advisor list and activate them. Simple as that.
Now onto the good stuff—what these indicators add to my Trend strategy. Bollinger Bands create a nice price channel where I can ignore the middle line. If those indicator lines are trending up, I’m seeing an uptrend, and if they’re going down, then it’s a downtrend. It’s all about trading those lines.
RSI is my go-to for a confirmation signal. When I trade against the main trend, I have to be super careful about my entry points. That’s where the Relative Strength Index comes in—it’s a great oscillator for spotting potential trend reversals.
For this strategy, I’m watching the 70 and 30 levels—those represent the overbought and oversold areas. When RSI crosses into one of those zones, it’s time to confirm a trend reversal.
How I Roll with the “Trend” Strategy
Before I jump into trading, let’s lay down some money management basics. Since I’m often trading against the main trend, I follow the Martingale rule. If one of my trades doesn’t go well, I bump up my next trade volume by 2.5 times. I usually start with less than 0.5% of my total deposit to keep it safe.
Now let’s break down how to actually trade with my “Trend” strategy.
When I want to grab a CALL option, I’ll wait for a downward candlestick to close beneath the lower Bollinger Bands line. Meanwhile, my RSI signal line better be below 30—that’s my cue that the trends are down and I’m ready to take action.
As for the PUT option, I'm waiting for that upward candlestick to close above the upper Bollinger Bands line, and my RSI better show it’s above 70. That’s my signal that the trend is moving up.
Don’t forget, I’m focused on short-term trading with this Trend strategy.
The expiry time matches the time frame of one bar—so that’s five minutes in my plan.
Wrapping It Up
If I stick to this strategy, I’ll be well on my way to making profits with those trading options. The profits depend on how well I combine this strategy with other technical analysis tools. The more signals I gather, the better my chances of closing a successful trade.
