Introduction
Pocket Option is a popular binary options platform ( see the best binary options brokers – https://revieweek.com/binary-options-brokers/ ) that provides traders with a wide range of assets and instruments. Success in trading on this platform requires understanding and applying various strategies. In this article, we will take a look at a few popular strategies that you can try on the Pocket Option site.
Pocket Option Trading Strategies
These strategies are:
- Trend Following Strategy
The strategy is based on trading in the direction of the current trend. The trend can be upward (bullish) or downward (bearish). The basic idea is to open Call positions in an uptrend and Put positions in a downtrend.
Tools:
- Moving averages (SMA or EMA). These indicators help determine the direction of the trend.
- SMA (50) and SMA (200). Short-term and long-term moving averages.
- Relative Strength Index (RSI). This indicator is used to confirm the strength of the trend and detect possible reversal points.
- RSI (14). Standard period for RSI.
Trend Definition:
- Uptrend: price is above the SMA(50) and SMA(200).
- Downtrend: the price is below the SMA(50) and SMA(200).
Trend confirmation:
- Uptrend: RSI is above 50, which confirms the strength of the trend.
- Downtrend: RSI is below 50.
Position Opening:
- Call position: if the price is above the moving averages and the RSI is above 50.
- Put position: if the price is below the moving averages and RSI is below 50.
Scalping Strategy
Scalping is a strategy aimed at profiting from small price movements. This strategy requires high concentration and quick reaction to market changes.
Tools:
- EMA (Exponential Moving Average). Helps to determine the short-term trend.
- EMA (5) and EMA (20). Fast and slow moving averages.
- Stochastic Oscillator. This indicator is used to identify overbought and oversold conditions.
- Stochastic (14, 3, 3). Standard settings.
Trend Definition:
- EMA (5) above EMA (20): upward short-term trend.
- EMA (5) below EMA (20): downward short-term trend.
Confirmation of the trend with a stochastic oscillator:
- Oversold: Stochastic below 20.
- Overbought: Stochastic above 80.
Position Opening:
- Call position: when EMA (5) crosses EMA (20) from bottom to top and Stochastic is in the oversold zone.
- Put position: when EMA (5) crosses EMA (20) from top to bottom and Stochastic is in the overbought zone.
Level Breakout Strategy
This strategy is based on trading on breakouts of important support and resistance levels. Breakouts are usually accompanied by significant price movements.
Tools:
- Support and resistance levels. These levels can be determined manually or with the help of automatic indicators.
- Bollinger Bands. These bands are used to assess volatility and confirm a breakout.
- Bollinger Bands (20, 2). Standard settings.
Identification of key levels:
- Support: the level below which the price does not fall.
- Resistance: a level above which the price does not rise.
Breakout confirmation:
- Upward breakout: price breaks through an upward resistance level, accompanied by increasing volume and expanding Bollinger Bands.
- Downward breakout: the price breaks the support level downwards, accompanied by an increase in volume and a widening of the Bollinger Bands.
Position Opening:
- Call position: when price breaks through a resistance level and Bollinger Bands expand.
- Put position: when the price breaks the support level and the Bollinger Bands expand.
Conclusion
Using the right strategies and indicators is the key to successful trading on Pocket Option. Each of the presented strategies has its own strengths and weaknesses, and their application depends on the current market conditions. Successful trading requires discipline, constant analysis of results and risk management. Remember that no strategy guarantees 100% success, so it is important to be prepared for possible losses and always strive to improve your trading skills.
