How To Catch Spikes On Crash And Boom
This strategy helps you scan the market and get profitable spikes from busts and booms. BOOM AND CRASH can also be traded using price action, but you will need the help of tools to help catch the spikes. Just like in forex, the moving average indicator works quite well in boom and bust markets and will sometimes deviate the price from the exact level of the moving average, resulting in a huge bounce.
The Relative Strength Index (RSI) is another great indicator that can be used to spot spikes in Boom & Crash indices. Once the RSI levels are set, follow this RSI strategy to capture spikes in the Boom and Crash indices. Open M1 timeframe in Boom & Crash and Boom index (Boom 1000 and Boom 500), try to peak when RSI drops to 30.
If the RSI number on M1 was close to 1.00 I would have to take a buy trade, this peak will come before the RSI number reaches 0.00. When trading on the Boom 500, the rsi indicator should be in the strong buy zone (low price), on the Crash 500, the rsi indicator should be in the strong sell zone (high price). The first trader told me that if the RSI number (period 14) on M1 M1 is close to 99, I can take a sell trade because it will definitely increase before it reaches 100.
Avoid buying rallies at resistance levels and selling crashes at support levels. Boom 500 is designed to capture buying spikes and crashes, we always catch selling spikes whenever there are spikes, we need to catch them. That's how you catch spikes guys, there is no HOLY GRAIL in Boom 500 and Crash 500 trading that gives you the signals at your disposal.
When we peak, we wait for the market to reach EMA9, if it breaks above 3 small candles, we exit the trade, this applies to Crash 500 and boom. This happens when price is just rising from strong support at 1000, even if price comes from strong resistance... 1000 crash would be over 90 and avoid anticipation when it reaches our sell zone Peak. For the Crash 1000 (500) index, the average decline in the price series occurs at any time within 1000 (500) ticks. In the case of the prosperity index 1000 (500), the average peak of the price series occurs at any time within 1000 (500) ticks.
Whenever you find an RSI divergence in the boom and bust pair and the boom and bust pair, it indicates a trend reversal and you can expect a peak or series of peaks for that pair. As for the Boom & Crash index, the supply and demand area can be used for medium to long-term positions, and you can expect a series of peaks at this level. When resistance and support levels are clearly defined, they can be used for a few days when the 500 boom/crash market moves up and down.
Below are a number of indicators that will be used to trade booms or busts, and can also be used to buy or sell a sharp dip, and sell or buy an uptrend. In this article, I will share my FOUR best trading strategies that I personally use to catch spikes in the boom and bust market. Hello, my name is Patrick, I am a professional Forex, Stocks and Indices trader and have been trading for over 9 years.
I am proud to be the best trading mentor you will ever work with. FYI, there is no 100% strategy for spotting crash and boom index spikes, but if you apply the strategy I will discuss below, you will earn at least 10% of your investment every day. You will gain an understanding of how the market moves and what drives the market. That is why this book is designed to enlighten the trader and equip him with the right and rare knowledge that will allow him to make serious profits from the ups and downs of the market.
Financial markets have diversified like wildfire lately. This is also supported by the way the market has been structured (peaks in buying booms and sell crashes), as well as the low risk/reward ratio of intraday or swing trading with very small lot sizes. The success rate was amazing, I only lost two trades out of almost 120 trades using this strategy. The lie is that both day trading and swing trading always take price action into account.
Please note don't touch pairs after RSI breaks the 90 level because these pairs can sometimes be stubborn... You can also use RSI rejection strategy on large timeframes like m30, h1, h4 etc . To catch spike on boom and crash need to have a good trading skill so that you can make money when there is market movements.
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