Trading strategies for Pocket Option
On the website of a binary options broker Pocket Option all the strategies that can be used to make a profit are described in detail. Each trader chooses his own tactics with which he works. When choosing a strategy BO broker You should consider that each of them needs to be tested and adapted to your trading tactics. Consider the top 5 popular strategies for binary options on the website pocketoption.com.
The "Impulse" strategy is ideal for options trading with a short expiration time. Before testing the tactic, it is necessary to set up indicators and prepare the working field. This tactic uses two indicators - EMA and Stochastic. Both of them are available in the Pocket Option trading terminal. For trading we set the following values for indicators:
- EMA: 10 (blue).
- EMA: 21 (yellow).
- Stochastic: 14, 3, 3.
After setting up the Expert Advisors, set the timeframe to 1 minute. You can use bars or Japanese candlesticks as a chart. You can trade any currency pairs and cryptocurrencies. The essence of trading is to buy an option at the moment of entering the overbought zone. EMA 10 at this moment should cross EMA 21 in the upward direction. Expiration time at the timeframe of 1 minute should be 3 minutes. The contract to sell opens on the opposite scheme.
The strategy is based on the use of indicators Parabolic SAR and Stochastic. These tools are available in the standard Pocket Option terminal. The tactic is suitable for trading any assets with high volatility, including cryptocurrencies. To use the strategy, select an asset and set the chart to Japanese candlesticks. At the same time, the timeframe should be set to indicators from 1 to 5 minutes. Select Parabolic SAR and Stochastic from the list of indicators. Specify the settings for the Expert Advisors:
- Parabolic SAR: 0.02.
- Stochastic: 14.3, deceleration 2.
After setting up the terminal it is left to wait for a buy or sell signal. A bid or offer is opened when the last Parabolic point gets under the candle and the Stochastic lines leave the oversold zone (from 0 to 20). The profitability of the tactic is estimated at 85%.
Against the trend
Trading by trend - The most stable strategy without high risks for the trader. The essence of the tactic is to trade an option in the direction of price movement. But to get the highest profits traders use the strategy "Against the trend.". The essence of it lies in the careful selection of an entry point at the moment before the trend reverses. To trade requires the installation of the terminal Japanese candlesticks with a timeframe of 5 minutes. Among the indicators you need to select Bollinger Lines and the Relative Strength Index. There is no need to configure the indicators.
In this tactic Bollinger Lines are used as a price channel, the middle line is not considered. The RSI indicator is used as a confirmation signal before the trend reverses. Buying a CALL option opens when a downside candle closes below the bottom line of the price channel, while the RSI signal line must cross downwards over the 30 mark. Buying a PUT option is done in the opposite way.
Pattern "Wedge." - is a recognizable signal to traders that the price movement after breaking through the channel will be prolonged in the direction of the trend. A wedge is formed when the forces of buyers and sellers are approximately equal and they exert significant pressure on each other. As a result, the upper and lower limits of the price channel converge at one point. Having seen this pattern, the trader just needs to wait for one of the lines to be broken. Then it is possible to open a deal to buy an option in the direction of the trend. The term of the contract in this strategy should not be less than the time required for the formation of five candles.
This is one of the simplest strategies for beginners. It is based on the use of tools Keltner Channels and ADX. To trade, you need to connect the terminal Japanese candlesticks. Instruments are connected in the standard menu. The time frame for this tactic is set to 5 minutes. After connecting the terminal and the tools, proceed to the signal settings.
- Keltner Channel: 20, 20, 2.
- ADX: 14.
Having set the parameters, you can start trading. It should be noted that contracts in this strategy are not concluded during a flat. For successful trading, you need to keep a close eye on both signals. The CALL option is bought when the candle breaks the upper boundary of the channel in an uptrend. At the same time, the ADX should be above the 25 level, indicating a strong price movement. The PUT option is purchased when the candlestick breaks the lower channel when the ADX is also above the 25 level.
This is only a small part of the strategies available for Pocket Option trading. A total of 50+ strategies are described on the company's website. Register on the broker's website, choose your strategy and start earning on binary options.