Let me share this awesome PocketOption trading strategy called Spring—it's a smooth approach using three big players: Stochastic, CCI, and Bollinger Bands. All these tools are available at the Pocket Option broker. This setup is perfect for both beginners and experienced traders.
When I'm trading, these Springs provide great opportunities. First, they help me set a stop loss just above or below the day's extreme when the spring or upthrust happens. Plus, they set targets since the price tends to bounce back to the opposite end of the trading range.
How does the Spring Strategy work?
What a cool name for a trading strategy! Imagine this: the price is moving in the direction I want, while a coiled spring is right below it. The advantages of the “Spring” are:
- Flexibility. I can use this strategy on any timeframe—no exceptions! It’s ideal for long-term traders and fast movers.
- Accuracy. This strategy helps me get electronic contracts at the best prices.
- Accessibility. Just three indicators from the broker—easy to use, right?
- Versatility. I can adjust the settings based on the asset I'm working with.
How do I set up my trading chart?
Before jumping into options trading with the “Spring” strategy, I’ve gotta set up the parameters as follows.
First, I start with the Stochastic. This tool shows me the overbought and oversold levels. I use these settings: 5; 3; 3 for shorter timeframes, and 14; 5; 3 for longer trades.
Next, the Commodity Channel Index (CCI) shows how far the price is from its average. I prefer a 14-bar setup—works well for any timeframe—but I can always tweak it based on how volatile my asset is.
Bollinger Bands are my main signal tool. I recommend setting them to 20 and 2.
And don’t forget, I’m using Japanese candlesticks on my chart, no matter the timeframe.
How do I trade options with the “Spring” strategy?
Alright, I’ve got all my settings set—now it’s time to look for signals to grab electronic contracts.
- CALL when the candlestick closes below the lower Bollinger band, the CCI is between -100 and -300, and the Stochastic indicates that the market is oversold.
- PUT when I see a break above the upper Bollinger band. Meanwhile, the CCI should stay between 100 and 200, and the Stochastic has to signal that the market is overbought.
And hey, make sure the expiration period isn’t shorter than the formation time of two candles.
From what I’ve seen, the “Spring” strategy can achieve up to 80% winning trades. Ultimately, it's up to me to figure out what works best for my style. A few important factors to consider are: my personality, lifestyle, and available resources. Happy trading!
