Introducing The Easiest way to getting rich by using Golden Binary Strategies in LBank |
In its new update, PocketOption has introduced a Quick Trade or Quick option that you can start the Trade immediately and select any time you like from half a minute to several hours, even with a precise second.
In this way, a world of possibilities is provided for you, and you can easily make countless successful small trades in the well and strong trends.
Quick Trading and Interface Updates
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Quick Trading — a new type of trading operation is added on Pocket Option, featuring a unique opportunity of placing trading orders with an exact expiration time. You can set a specific time for a forecast closure on the chart (hours, minutes and seconds are set before expiration). The minimum timeframe is only 30 seconds.
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We also put special attention into Pocket Option trading interface optimizations. The first thing you notice is the left panel of the trading interface. All trading options are combined into a single menu - by clicking on the "Trading" button you can select a specific trading type (quick trading, digital trading, MT5 forex, as well as everything previously listed in demo mode).
The Profile menu has become more concise and now includes a client’s profile, trading profile, security and trading history. "Help" section also took on a new look, including a support service, frequently asked questions, user guides and links to mobile applications.
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Many of you asked for more detailed information on the current trading session (right panel of the trading interface). Now you can see comprehensive info on open or recently closed trading orders: type of transaction, open and closed time/price, selected timeframe, difference in points and your profit. Additionally, you can always view your profile summary, trade and achievements progress by clicking on your avatar in the upper panel.
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Ease of use of the platform remains one of the most important priorities in development, which is why we pay special attention to the user interface along with the introduction of new features and trading opportunities.
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Earn on Pocket Option — industry leading trading platform!
Strategy: Jumping Kangaroo
Chart Type: Heiken Ashi
Indicators:
Parabolic SAR(Default)
Three Momentum(4,8,12)
Buy Signal:
Jumping parabolic point from the Top of the candle to the Bottom
All three momentum in the upward direction
Green candle with a relatively long tail at the top
Sell Signal:
Jumping parabolic point from the bottom of the candle to the top
All three momentum in the downward direction
Red candle with a relatively long tail at the bottom
💎💎💎💎
Strategy:Kingfish of Middle River
Indicators: Envelope(14-0.1-WMA)
Demarker(14)
Buy Signal:
When the candle cuts the middle line from the bottom to the top
and at the same time Demarker comes up from the bottom 30
Sell Signal:
When the candle cuts the middle line from the Top to the Bottom
and at the same time Demarker Comes Down from the Above of 70
Binary Golden Strategy: Rhino Strategy for PocketOption
Strategy:Heavy Rhino
(All Time Trade&All Assets)
Indicators:
Moving Average:SMMA=10(Blue)
Moving Average:EMA=5(Yellow)
Momentum=10
Buy signal:
When the yellow line cut the blue line upwards
and at the same time the Momontum indicator
cut the 100 line upwards from the bottom.
Sell signal:
When the yellow line cut the blue line down
and at the same time the momentum indicator
cut the 100 line down from the top.
💎💎💎💎💎
https://pocketoption.com/smart/acRvUGUgdpQoMh
How do we trade with the PocketOption's application&website interface
To enter the PocketOption broker, you can use the following link and then click on Login:
1. The base price for trading that you can change by clicking on the + or - option. By clicking on the middle number, you can check the profit rate according to the base price.
2. The amount of capital to enter the transaction can be determined. The desired value can be determined using different items.
3. The closing time of the trading can be selected by this method, how long the transaction can remain open for change. By clicking on the time, you can see the remaining time until the opening and the ability to choose the deal to announce the new conditions.
4. The profit margin will be displayed if you estimate and make the right choice for the transaction.
5. The volume of transactions performed on each side is shown in this section. You can consider the willingness of traders to do the transaction.
6. A summary of the important items of the transaction is displayed.
7. By clicking on this item, all trading symbols will be displayed. Categories and profits of each symbol are also mentioned.
8. How to display the price in the chart is determined by this section. Case 1 is the total price level, Case 2 is the line, Case 3 is the Japanese candle Stick, Case 4 is the bar, and Case 5 is the Heicken Ashi candlestick.
You can also set the time frame of the desired chart in the lower part of this section
9. To use the indicators, you must enter this section. On the indicators page, you can add several indicators to the chart based on your trading technique.
10. Chart tools such as resistance and support lines as well as Fibonacci are available in this section.
11. You can enter this section to change other tools.
After clicking on this section, several items are displayed, of which item 1 is related to Social Trading and item 2 is related to activating the volume of transactions made in sales and purchases, which is described in section 5.
Case 3 is the summary section of the transaction described in Section 6, Case 4 is for larger price displays, and Case 5 is for smaller displays.
12. This section displays the transactions made.
13. With the help of this section, trading signals can also be used. You can use the professional Forex application to benefit from the daily signals, analyzes and news of digital currencies, binary, forex, gold exchange and daily stocks.
The VIP package is offered free of charge to traders who are professionals in Forex Trading. In this software, more than 70 strong strategies with a temporary percentage of over 70% are available for all trading techniques.
14. The Social Trading section also shows successful traders and their trading cases, and you can also be informed of their trades.
15. In this section, you will be shown the current and future competitions(Tournements).
16. In this section you can activate transactions in the notary. After clicking, you will enter the transaction information section.
To order a transaction based on time on section 1, to order based on the desired price in the specific view of item 2 and to access the expected transactions, you must click on item 3.
Case 4 shows the desired symbol, case 5 shows the time of transaction activation, case 6 shows the desired amount of profit, case 7 shows the time frame of the transaction and case 8 shows the amount of capital for the transaction. Finally, you can buy/sell with the red/green buttons.
17. By clicking on this section, you can make transactions using the computer keyboard screen.
18. Using this section, you can share the price chart photo on social networks.
19. In this section you can select the demo account and the real account. By clicking on the button, the following items will be displayed.
20. These two vertical lines indicate the time of the transaction. The left line indicates the time the transaction is active to make changes and the line to the right indicates the time of the transaction.
PocketOption Solicit Golden Strategy
Indicators setting:
RSI (14)
Awesome Oscillator (default settings).
Buy Entry:
RSI crosses the 30 level from down to above.
At the same time, the signal from the RSI should correspond with the green bar of the Awesome Oscillator.
Wait for the Bullish candle to form and enter the trade.
Sell Entry:
RSI crosses the 70 level downwards and continues falling.
At the same time, the signal from the RSI should correspond with the green bar of the Awesome Oscillator.
Wait for the Bearish candle to form and enter the trade
Newest Update pocketoption appllications
for android and ios and all mobiles
To have the latest features of the PocketOptions' application on your mobile phone(Android,ios, or any mobile), please install the latest version from the following links:
Android: https://is.gd/poandroid
ios: https://is.gd/poios
All Mobiles: https://is.gd/poallmobiles
Golden Binary Strategy: Aroon&MAs Bourne PocketOption Strategy
Indicator settings:
Aroon (period 25), EMA (period5) SMMA(period 20).
Buy Entry
when Aroon Up crosses above Aroon Down And EMA 5 is higher than SMMA 20.
Sell Entry
When Aroon Up crosses below Aroon Down. And EMA 5 is lower than SMMA 20.
Achievements and Market
By performing certain actions, active players earn achievements. Each achievement guarantees a certain amount of experience points for increasing profile level and gems that can be exchanged for various bonuses in the Market. Please note that some purchases are only available after reaching a certain profile level. Value of gems depends on their color. Red gems are the easiest to earn but they are the cheapest. Blue and green gems are more expensive and are not as easy to get. Finally, the rarest purple gem will be given only to the most dedicated traders.
Market is a section of your cabinet where you can buy bonuses that will be added to your balance, promo codes and other useful things. In order to purchase something you need gems of different colors which you can get for special achievements or just buy for money. You can see your goods and browse your history of purchases in the "Purchases" section.
You can buy a promo code for a deposit bonus in the Market tab of the same name. Your purchased promo code will be automatically displayed on the Deposit page and in Promo codes section of the Finance page. If you do not want to use it with your new deposit, click "Delete" button in the promo code field on the deposit page. Please note that you can only have one active bonus at a time, so you will not be able to activate a new promo code until the active bonus has been traded off or canceled.
You can buy a promo code for a deposit bonus in the Market tab of the same name. Your purchased promo code will be automatically displayed on the Deposit page and in Promo codes section of the Finance page. If you do not want to use it with your new deposit, click "Delete" button in the promo code field on the deposit page. Please note that you can only have one active bonus at a time, so you will not be able to activate a new promo code until the active bonus has been traded off or canceled.
Pocket Option provides you with an opportunity to cancel unprofitable trades. To do this, use gems to buy a Risk-free feature on a suitable amount. Each purchased cancellation of an unprofitable trade can be used only once. This means that if you have used a cancellation of an unprofitable trade for $100 to cancel a losing trade for $20, you will receive $20 to the balance and the rest of the amount will be written off. Use this option wisely! When buying the "Cancel two unprofitable trades" option please note that they do not have to be used simultaneously. After clicking "Activate" button, the "Active" tab will appear, where the number of remaining activation will be displayed. To cancel an unprofitable trade , go to "Profile > History of live trades" and click the "Cancel" button next to the unprofitable trade. You cannot cancel an unprofitable trade if you have made a hedged trade in the same trading period.
Boosters allow you to gain additional experience points (XP) to increase your profile level. A higher profile level gives you access to buying more efficient bonuses on the Market. You can buy a booster on the Market and activate in the shopping section. Boosters work for a limited time, it is impossible to prolong their validity after activation. After expiration of any trade (profitable or unprofitable) you will receive a certain amount of experience points, depending on the type of booster. Hedged trades and bonuses do not affect the amount of experience gained from the booster. Boosters can be combined, thus providing an increased amount of experience per trade.
Prolongator is used to increase validity period of boosters. Boosters and prolongators can be used together in any ways, and their effect is combined. It is important to remember that a prolongator can be activated only when there is an active booster or several boosters. One prolongator prolongs all active boosters.
Profile level affects your Social Trading status and shows your loyalty to Pocket Option. The higher your Profile level, the more various offers you receive from the company. This is a company's initiative to help you achieve better trading performance. Our clients with high profile level get access to premium services and attractive products in the Market.
Cashback is calculated in case the total amount of losses is greater than the gains for the previous month or since the date of activation. Cashback is added to your balance on the first day of every month automatically. You can activate the cashback bonus you received on the Achievements > Purchases page.
Gem mining is a harvesting of gems by copying the trades of other users. To get gems for copied trades you need to activate a mining license. Every copied trade gets you a gem shard. Color of the gem depends on your license type.
You need to activate your risk free bonus in the Market first. After it's activated, go to your history of live trades and you will see the "Cancel" button in the rightmost column when applicable.
Deposits and withdrawals
Minimum deposit amount is $50. We regularly run specials where we offer reduced deposits for our clients. You can follow us on social media or subscribe to our email newsletter to stay tuned. Special offers can also be received through our partners.
We do not have a limit for a maximum deposit amount, however this amount may be affected by possible limitations of your chosen payment system.
The minimum withdrawal amount per transaction is $10.
We do not have a limit for a maximum withdrawal amount, however this amount may be affected by possible limitations of your chosen payment system.
All withdrawal requests are processed on the first-come, first-served basis. The usual processing time is one business day.
Pocket Option does not charge any fees for deposits or withdrawals. Please note that some gateways and payment systems may charge commission and use their own currency conversion rates.
We do not request documents unless necessary, but we comply with provisions of the law "On Combating Legalization (Laundering) of Proceeds from Crime and Financing of Terrorism" and KYC policies. Depending on the type of withdrawal, a company representative may require you to provide a scanned copy of your documents or additional personal information to ensure security of client funds.
You can cancel your bonus at any time by clicking the Gift icon directly on the graph or in the Bonus information section in your trading profile. The bonus is cancelled automatically when you make a request for withdrawal of any amount before making a turnover required to complete the bonus. Gems spent on the purchase of your bonus are not returned. Information on bonus conditions and turnover progress is available in "Finance > Promo codes".
The bonus you receive doesn't change the fact that you can withdraw the original deposited amount + any profits, however it will be canceled of your net turnover hasn't reached x50 of the bonus amount. In that case if you want to withdraw the bonus you need to reach the net turnover requirements first and then withdraw funds. You can check your bonus status in Finances > Promo codes.
You can see all available deposit methods on the Finances > Deposits page. Certain deposit options are only available to verified users.
You can request a withdrawal with any of the methods you previously used for depositing.
Trading process/Trading
Strike price allows you to place your trade order higher or lower than the current market price. This can either maximize or reduce the hypothetical profit depending on the option type (call or put). When you use strike prize you predict price change and also set limits which the price should exceed. Risks and potential profits depend on the difference between strike price and the actual price. To enable the Strike price option you need to find a corresponding button next to the current price indicator.
Minimum option price is $1, and the size of potential profit corresponds with the investment.
A Put option is an option which yields profits when expiration price is lower than the price at the moment of trade creation. If the option expires at the creation price, full cost of the option is paid back to the trader.
A Call option is an option which yields profits when the expiration price is higher than the price at the moment of trade creation.
Expiration time is the date and time of option expiry, i.e. the specific time at which the option expires. It is calculated based on time before purchase and a 30 second time frame.
Expiration price is the asset price at the moment of expiry for a specific option.
If expiration price is equal to opening price, the cost of the option will be returned to trader.
If an option expires "in the money" (when opening price is higher or lower than expiration price, depending on the type of option), you profit will be equal to amount specified in the option.
Payout percentage may vary from 218% to 0% depending on strike price usage, quotation liquidity and trade forwarding conditions.
Our trading server always uses GMT+2 winter time. Daylight Saving Time is not applicable.
Minimum trade order amount is $1, and the size of potential profit corresponds with the investment.
You can copy trades of other players created on the same timeframe with the same payout percentage. A trade can only be copied within a few seconds seconds from the moment it appears. A trade is copied in a 1:1 ratio. This means that the trade will not be copied if your trading balance is lower than the trade amount.
Click on the Chart Type, Indicator or a Drawing button at the top of the trading interface to access the settings. In the pop-up window, you can change the type of chart, enable and configure indicators from the list, as well as choose various drawings.
This is a social system for monitoring and copying trades of Pocket Option traders from around the world. Our platform also has a built-in chat for communication between our users. All trade copying functions are available in the "Social Trading" menu on the right side of the trading interface.
Monitoring function allows you to add traders whose trading history you are interested in to your Favorites. By adding players to your watch-list you will always be able to quickly find them and track their current ranking and trades. You can monitor top trades of a player for a single asset or among all their history. You can also track the performance of players through the multi-functional ranking of top players which displays their full history and trade profitability. Both rankings are available in the menu on the right in the "Social Trading" section.
Simply select the player you like from the ranking list and click on their profile picture. In the window that opens click the "Copy Trades" button, then set copy settings or leave the default ones and confirm the action.
The “Copy in proportion” setting allows you to adjust the proportion of the trade you are copying regarding to the original one. For example if you set this parameter to 60%, when you copy a trade of $100 you will open a trade of $60. Payout percentage will be the same as in the original trade. The “Stop balance” setting allows you to set the level of funds in your account at which the copying will be terminated. You can also stop copying at any time manually. The “Minimum copy trade amount” setting allows you to limit copying based on the minimum amount. This may be handy if you are not interested in copying small trades. Trades less than your specified amount will not be copied. The “Maximum copy trade amount” setting allows you to limit copying based on the maximum amount This may be handy if you are not ready to copy large trades. Trades more than your specified amount will not be copied.
You can enable or disable the display trades of other users on the chart by clicking on the Social Trading button located to the right of the asset selection menu. If the "Social Trading" parameter is activated (highlighted with a blue frame), then you will see the deals of other traders on the chart. To disable the display of trades of other traders, you simply need to click on this icon, deactivating it in this way.
Enable the display of other traders' trades on the chart (see previous answer). Thereafter, any displayed trade will be available for copying directly from on the chart. To copy a selected trade click on the profile picture of the player and click "Copy" in the pop-up window. The trade will be copied "as is", regardless of your copy settings. If there's no “Copy” button in the pop-up window, it means that the trade may no longer be copied.
Live account (Trading section) allows you to trade on the platform and make profits that you can withdraw. Demo account (Demo section) allows you to trade using virtual currency. This is meant to improve your trading skills, try new strategies and platform features without a risk of financial loss. Charts as well as asset prices are identical across both accounts.
In the top menu click on your Demo balance and select the "Top-Up Account" option to add $1000 to your Demo account.
Click on your avatar on the top part of the screen and activate the "Show data" option in a drop down menu.
Once you open a "Trades" menu on the right panel you will see a cancel button as well as a refund amount. If no button is present - it means that there is no time left to refund the trade. Also note that you cannot cancel hedged trades.
Every weekend our traders can participate in the Gems lottery. It doesn't cost you anything. Just keep on trading on your Live account during the weekend.
A swap-free trading account is a trading account that does not require its owner to pay or receive interest. It is also called islamic accounts. These accounts are opened automatically for the clients of Pocket Option, without the need to change any settings or contact support.
Let us consider the indicator called the Alligator. The popularity of this indicator is due to the fact that it signals the beginning of trend movement. However, using the Alligator alone as the main indicator is quite difficult, since it rarely gives signals directly for the opening of a trading position. The indicator lines can easily be used on their own - as resistance or support lines. Apparently, the developer of this indicator was a romantic person, therefore he described the work of his brainchild as follows:
Signal of strengthening of the bearish trend - opening of the alligator's mouth
The signal to open a position is the price chart passing through the slow line of the alligator's jaw. In this case, the confirmation of the trade direction is the closing mouth, i.e. the intersection of the slowest line and both fast lines (tongue and teeth).
Trader's actions when the signal is formed:
Adding the indicator to the chart
Setting up the indicator's parameters
Signal of the end of the bullish trend - closing of the alligator's mouth, you can buy a put option
Advanced use of the Alligator indicator
As already noted, the lines of this indicator can be used as support and resistance lines. When the price reaches the fast lip line (purple in the figure), a signal may emerge for opening a trade on rebound. A strong signal occurs if the jaw line is not broken through.
Trader's actions when the signal is formed:
Signal to buy a call option after a rebound from the lips of the alligator
The trend continuation signal Three Methods occurs during a pause in the development of the trend. In the price chart, the pattern looks like a few small candles following a long candle. The main sign of the pattern forming is finding new small candles within the limits of the previous candle. The number of candles in the pattern can be more than three. Completion of the pattern and a signal of the trend resumption is the direction of the big candle along the trend. You can open a position immediately after the formation of such a candle.
Trader's actions when the signal is formed:
Buying a call option in a bullish trend using the three methods pattern
Buying a put option in a bearish trend using the three methods pattern
As seen from the figures, the three methods pattern looks very much like technical analysis patterns Flag or Pennant.
In this trading strategy, Bollinger bands are used. This indicator is quite easy to use and can, similarly to trend channels, show the range of price changes in which it moves a significant part of the time. When working with Bollinger bands, moments like when the price drastically crossed the indicator border are considered as signals. Usually, in case of such a sharp exit out of the limits of its usual fluctuations, the price soon tends to return to the central line of the indicator.
Trader's actions when the signal is formed:
Adding the indicator to the chart
Setting up the indicator's parameters
Buy a call option when the price goes outside the lower limit of the indicator
Buy a put option when the price goes outside the upper limit of the indicator
In addition, the upper and lower limits of the Bollinger bands indicator can be used as resistance and support lines, respectively.
Trader's actions when the signal is formed:
Buying a put option after a rebound from the external limit of the indicator, i.e., from the resistance line.
There is another strong trend reversal signal - tweezer. This combination represents two differently directed candles with the same extremes: in the downtrend, the tweezer candles have the same low, in the uptrend, correspondingly, the same highs. The values of lows and highs in the tweezer can be both the closing prices of candlesticks and their shadows. In addition, candlesticks in the combination can either follow one another, or include one or more candles tradeween them. The advantage of the tweezer combination is that it provides an explicit and strong enough signal. When this pattern is found in other candle combinations, the signal strength increases.
Trader's actions when the signal is formed:
Buying a call option after the tweezer has been formed
Tweezer with bullish engulfing
Since the appearance of the tweezer in the chart is a strong signal, you can act without waiting for its confirmation by the next candlestick, especially when the pattern is formed near resistance or support levels. But if you are not sure about the certainty of the situation on the market, you can wait for the appearance of a new candlestick and make sure that the choice of the trade direction is correct. As a rule, in most cases, the presence of a confirmation signal helps traders save profits.
Let us consider a trading method with the use of moving average signals. The price chart and the moving average line provide two types of signals: change of trend - crossing of the price and the moving average level, and continuation of trend when the price rebounds from the moving average level. In this case, the indicator is used as a resistance or support level, depending on how the price is placed in relation to it. To obtain high-quality signals, use a moving average with a long period. However, keep in mind that the indicator period for each trading instrument should be selected individually. For example, for USDCAD pair, a moving average with a period 30 should be used.
Trader's actions when trading on the rebound from a moving average:
Add SMA to the trading instrument chart - a simple moving average with a period 30;
Adding the indicator to the chart
Setting up the indicator's parameters
Wait for the signal, i.e., the price line reaching the simple moving average line;
You can buy the option after the appearance of the second candlestick directed away from the indicator line.
Buying a call option after the price has rebounded from the SMA
Trader's actions in case of a breakout of the moving average:
1) Add SMA to the trading instrument chart - a simple moving average with a period 30;
Adding the indicator to the chart and setting up the indicator's parameters
Wait until the current candle closes behind the simple moving average line;
You can buy the option upon the appearance and closing of the next candle behind the SMA line in the direction of the breakout.
Adding the indicator to the chart
The SMA indicator is fairly simple to use. You only need to set up the display period of the indicator taking into account the characteristics of the trading instrument.
A squat candlestick often signals the trend reversal. The appearance of such a candlestick usually indicates a market uncertainty in the current direction of the movement. Quite often, squat candles occur at price levels. It may be a single candle or there may be several of them. When a candle with a small body and a long shadow is forming, there is a possibility of a reversal of the current trend.
Trader's actions when the signal is formed:
Buying a call option after a squat candlestick
If after the formation of the squat candle, the trend continued in the original direction, then the signal can be considered true. Of course, as with the engulfing, to confirm the reversal, it is worth waiting for the closure of the next candlestick after the squat candle.
In addition, it is necessary to pay attention to the fact that several squat candles can be formed in a row, and they will all inform about the uncertainty with the direction on the market. There are various combinations of squat candles. You can find more detail in books on candlestick analysis.
Strategy based on a rebound from the level
The main feature is that we open a position after the price changes direction next to it. The signal for the opening of the trade will be the inability of the candlestick that reached the level, to close behind it. A candlestick can touch the level with its shadow or its body. Clearance of the power level by the shadow of the candle and the closing of the candle before it will also signal the inability of the price to overcome it. The confirmation of the signal will be the next candle going in the opposite direction from the level.
Trader's actions when the signal is formed:
Buying a put option at the rebound of the price from the resistance level
Buying a call option at the rebound of the price from the support level
Buying a call option at the rebound of the price from the trend line of an uptrend
Selling at the rebound from the channel line of an uptrend
Remember, there can be a great many support and resistance levels in the chart, however only those levels that are confirmed by the price will have an impact on the price in the future. Checking the power level is very simple: to do this, you just need to rewind the history of quotations back and see how often the price paused at or reversed from this level. If the price does not notice the level, then there is no sense in taking it into account in your calculations.
This candlestick combination signals the reversal of the trend in the opposite direction. The signal occurs when a candle appears, which has a larger body than the body of the previous candle and is directed opposite from it. This new candle is called engulfing. After its appearance, it is necessary to track where the candle following it will go. If the candle goes in the direction of the engulfing, then after it is closed, you can enter the market
Trader's actions when the signal is formed:
Bullish engulfing pattern
Bearish engulfing pattern
Buying a put option in a bearish engulfing
It should be taken into account that the larger the engulfing candle, the stronger the movement after the change in the direction of the trend. In case you have a certain margin of profit in your deposit, take some risk and buy the option immediately after the formation of a strong engulfing candle without waiting for the confirmation candle. However, it is important to always remember that the appearance of a candle signal must be confirmed by the candle following it.
A squat candlestick often signals the trend reversal. The appearance of such a candlestick usually indicates a market uncertainty in the current direction of the movement. Quite often, squat candles occur at price levels. It may be a single candle or there may be several of them. When a candle with a small body and a long shadow is forming, there is a possibility of a reversal of the current trend.
Trader's actions when the signal is formed:
It should be taken into account that the larger the engulfing candle, the stronger the movement after the change in the direction of the trend. In case you have a certain margin of profit in your deposit, take some risk and buy the option immediately after the formation of a strong engulfing candle without waiting for the confirmation candle. However, it is important to always remember that the appearance of a candle signal must be confirmed by the candle following it.
The strategy is based on opening a trading position when the price breaks a resistance or support level with the current candlestick and continues its movement in the original direction. The position can be opened only after confirming the breakout, i.e. after the formation of the next candlestick in the same direction as the previous one.
Trader's actions when the signal is formed:
Buying a put option after a breakout of the support level
Buying a put option after a breakout of the channel line in a downtrend
Buying a call option after a breakout of the downtrend line
When applying the level breakout trading strategy, remember that you should wait for the confirmation of the signal, since the breakout may prove to be false. For example, a false breakout of the level is observed in the case when the first candlestick breaks through the level and closes behind it, and the second candlestick returns back to the range next to the opening price of the first candle.
Signs of false level breakout:
Example of a false breakout of the support line
If after the breakout of the level, a candle in the opposite direction or a squat candle appeared, such a breakout may be false. In this case, you should wait for the candle going in the direction of the breakout of the level and make an option purchase after its closure.
Signals in PocketOption
Follow the signals to be more successful in your trades.Analyze the trends to increase your trading efficiency.
Traders around the world use hundreds of strategies for financial markets and binary options.This article won't list each and every one of them, but will introduce the beginners to the fundamentals of market analysis. Our team considers this to be the optimal way to successfully begin your path into the world of trading and figure out the basics of every new strategy you encounter in the future.
Strategies are used to receive signals to start placing trades. Thus, the signals directly depend on the selected analysis method. We will talk about four main areas of technical analysis in this article:
1. Candlestick analysis
This type of analysis uses candlestick patterns, as well as individual candles on the price chart. Different patterns can signal for either a trend reversal or its continuation. Here are some examples of candlestick analysis strategies.
Trend reversal
Engulfing pattern strategy - this strategy is based on the engulfing candlestick pattern and signals about a trend reversal. Look for a short candle, after which there is a longer one with an opposite direction. The second candle "engulfs" the previous one. When the pattern is formed, you have to pay attention to the direction of the following candle. If it moves in the same direction as the engulfing candle, consider opening a trade order.
Squat candlestick strategy - the upcoming reversal of a trend is often signaled by so-called squatting candles, which have small bodies and long shadows. Usually, the appearance of such a candle on the chart informs about the uncertainty of the market. There may be one or several squatting candles at in a row. When this pattern appears, it is very likely that the current trend will reverse.
Tweezers strategy - another strong trend reversal pattern is "tweezers." It consists of two candles with different directions and the same extremes (maximum or minimum prices): during a downtrend the tweezers candles have the same minimums, during an uptrend - the same maximums. Both closing prices and shadows can act as extremes. It's worth noting that both candles that make up the pattern can be next to one another or contain one or more candles between them. The advantage is a fairly clear and strong signal. Finding tweezers as a part of any other candle pattern will enhance its effect!
Trend continuation
"Three methods" strategy - based on the "Three methods" pattern, the strategy acts as a signal of a trend continuation and can appear when a trend stopped its development. It consists of several candles with small bodies that follow a long one. You should pay attention to the small candles' values - they must be within the values of the long one. There also should be at least three small candles. The pattern ends with the appearance of a new long candle, which continues the trend direction. After it's closed, consider opening a trade order.
2. Power levels
Power levels are spots on the chart where the price can stop its movement and turn around. Power levels include support or resistance levels, trend or channel lines. When the price approaches a support or resistance level it may linger near that level, or reverse its movement. Two types of trading strategies are used with force levels: breakout and bounce back.
Breakout strategy - trades can be placed when a candle closes on the other side of the current power level, "breaking" it. In this case, the chart should continue its movement in the same direction. You can place your trades only if the next candle after the level was broken continues the direction of the previous one.
Bounce back strategy - according to this strategy, trades should be placed immediately after the price changes its direction while it's close to the power level. If the candle can't break through the level, it indicates about trend reversal. The candle can touch the level with its shadow or even with its body. The signal can be strengthened by the next candle if the price continues to move away from the power level.
Breakout and bounce back strategies provide strong signals for laid back and profitable trading. In addition, they can be improved by applying candlestick analysis.
3. Computer analysis
Computer analysis involves usage of technical indicators to spot trading signals and predict the price movement. Computer analysis considers the history of price changes which makes it quite a reliable choice. Among indicators' advantages is also their ability to determine a trend strength.
Moving averages is one of the basic but versatile instruments of computer analysis which will always have a place in the list of the most popular indicators. A signal for trend change is an intersection of the moving average with the price, and a signal for continuation of a trend is a bounce back of the price from the moving average level (here the indicator is used as a support or resistance level, depending on how the price is located in relation to it.) To spot these signals, it is recommended to use moving averages with long periods. However, it is important to select indicator periods individually for each trading instrument.
Bollinger bands are quite simple to use and can serve as a replacement for trend channels. The indicator represents the current price range. When using Bollinger bands the signals are received if the price goes beyond the indicator border - usually it's bound to immediately return to the center line of the indicator.
Alligator - this indicator is used to spot the beginning of a trend. However, it is not recommended to use it only as your main indicator, as it rarely provides signals to place a trade. Alligator lines can be used as support and resistance levels.
Indicators will prove to be quite useful in your trading process, as they allow you to quickly analyze the situation and make timely decisions. In addition, their code automatically calculates all of the required parameters and provides instant signals. But on the other hand, they need to be configured individually for each trading instrument.
4. News trading
As you might know, the market reacts to any significant financial, economic and political news. Depending on the significance of said news, after their publication the price may begin to change. News trading strategy is considered to be quite risky, but it allows you to make significant profits in just a couple of minutes.
Money Management
In addition to the main types of analysis, we recommend you to learn about money management strategies. This skill is extremely important for any trader who wants to achieve stabilized profits. The best money management strategy is loss tracking. It is necessary to initially determine the level of acceptable losses at which it is necessary to stop trading and revise the current trading strategy, since it has ceased to be effective. You can read more about money management here.
Conclusion
It is very important for novice traders to understand the basics of trading, as on this very foundation most of the variations of currently popular strategies and techniques are built.
Any trading strategy that you choose requires detailed studying and development of practical skills. You can use Demo account for these purposes. Regardless of your choice, it is also important to apply a money management strategy.
On our platform you will find descriptions of various trading strategies with detailed analysis and comments. Get invaluable practical experience and earn with us!
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