Despite the fact that turbo options can potentially deliver high short-term profits, experienced traders tend to prefer binary options with a medium-term or long-term strategy. This is because the medium-term approach reduces exposure to the risks that come with high market "noise".
Beginners, however, often start trading on Pocket Option with turbo options. The appeal of short-term contracts typically stems from the fact that medium-term strategies can seem complicated at first. That said, there is one system that is not only easy to understand, but is also popular among experienced traders — and all the tools it requires are built into the Pocket Option terminal by default.
Also, keep in mind that you can start trading with additional funds by using promo codes to top up your account from the Pocket Option broker. To further improve your performance with this strategy, you can use a promo code to cancel loss trade $10.
Key Features of the Strategy
This medium-term strategy is based on three indicators:
- SMA. Moving averages are used to determine the direction of the current trend. This indicator appears on the chart as a curved line. Candles located above it indicate an uptrend; prices below it indicate a downtrend.
- Bollinger Bands. This indicator also helps identify the trend, but additionally shows the size of the price channel — displayed on the chart as three lines. It is used to determine the optimal market entry point, specifically the moment when the price bounces off one of the channel boundaries.
- Stochastic. In this strategy, the Stochastic oscillator is used to confirm signals received from Bollinger Bands. It identifies overbought and oversold zones.
To use this strategy on Pocket Option, set the SMA period to 150 and the Bollinger Bands period to 20 with a deviation of 2. The Stochastic parameters should be configured as follows:
- %K period — 5;
- %D period — 3;
- slowing — 3.
It is recommended to apply this strategy on a Japanese candlestick chart with the H1 timeframe.
How to Trade This Strategy on Pocket Option
Trading with this medium-term strategy is straightforward. There are three conditions to meet before opening a trade.
Open a Call option when the SMA confirms an uptrend (the indicator line runs below the price chart), the price rebounds off the lower Bollinger Bands line, and the Stochastic signal line has exited the oversold zone (bounded by the 0 and 20 levels).
Put options are opened under the opposite conditions: during a downtrend, when the Stochastic line has exited the overbought zone (levels 80 and 100) and the price has bounced off the upper Bollinger Bands boundary.
The minimum expiration for each trade is 2 hours.
Rules for Applying the Strategy
For this strategy to be profitable, only highly liquid, actively traded assets should be used. Avoid placing orders during a sideways market (flat). A trade should only be opened once the Stochastic line has fully exited the overbought or oversold zone.
OPEN AN ACCOUNT WITH POCKET OPTION
Can't figure out how this strategy or indicator works? Leave a comment below and subscribe to our YouTube channel WinOptionCrypto — we'll answer all your questions in our videos.
To leave a comment, you must register or log in to your account.