Despite the simplicity of trading binary options on Pocket Option, it is recommended to execute trades in electronic contracts while following a specific strategy. Otherwise, trading will resemble gambling. After registering on the Pocket Option broker's website, beginners often find they need to understand how indicators, oscillators, and other technical tools work.
The "Ladder" system was created especially for novice traders, allowing them to start trading binary options right away. To use this strategy, select the "Japanese Candlesticks" chart in the Pocket Option terminal.
The Nuances of Working with Candlestick Charts
The Ladder strategy does not involve the use of technical tools. It is based on candlestick chart analysis, and understanding the principles of chart formation is essential before trading. This knowledge will later help you identify good entry points for opening a trade.
Rectangles (or candles) form continuously on this chart. Their "body" represents the distance between the opening and closing prices. In the Pocket Option terminal, candles that form during a downtrend — where the opening price is higher than the closing price — are colored red. During an uptrend, where the closing price is higher than the opening price, green candles appear.
At the top and bottom of each candle, wicks (or shadows) appear, showing the maximum and minimum prices reached by the asset during that candle's formation period. This period is also known as a timeframe, and it can be configured in the Pocket Option terminal. For example, if a trader sets the H1 timeframe, each candle on the chart will form over one hour.
While experienced traders draw on more data when analyzing candlestick charts, the information covered here is sufficient for trading with the "Ladder" strategy.
Also, keep in mind that you can boost your starting funds by using promo codes to top up your account from Pocket Option, and improve your results with this strategy by using a promo code to cancel loss trade $10.
Rules for Using the Trading System
Trading with the "Ladder" strategy requires following a set of rules:
- Only trade highly volatile assets — prices must change frequently and at a reasonably high speed.
- The optimal timeframe is M5.
- The contract's expiration time must be shorter than the candle formation period.
- Avoid trading immediately before or after major news releases.
- Place orders using the minimum possible trade size.
To improve the performance of the "Ladder" strategy, Pocket Option recommends applying the Martingale principle. This means increasing the size of your next trade following a loss.
How to Use the Strategy on Pocket Option
Within this strategy, you should buy Call options when all of the following conditions are met simultaneously:
- The trend is upward (candles are green).
- Two consecutive candles have formed in the same direction.
Open a trade at the moment when the next candle opens at least one point above the high of the previous one.
Put options are traded in the opposite situation — place the order at the moment when the next red candle drops below the low of the previous one.
Following these rules is essential when trading on Pocket Option with a candlestick chart. When using the Ladder strategy, traders will receive frequent signals, some of which will be false. By applying the Martingale principle and trading with minimum position sizes, you can limit potential losses while increasing your overall returns.
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 an upcoming video.
To leave a comment, you must register or log in to your account.