If trading is booming and crashing, you should use the right batch size, which does not lead to a capital loss in a short time. A crash below $500 should respect resistance and support the traded asset.
Boom 500 and Crash 500 are synthetic index aspects of foreign exchange trading, they are market tick based simulations of stocks, but this time there is only one futures asset, Boom 500, which simulates 100 shares of companies, and it has no known components, so it is difficult to study all the tricks of the market and get a 100% perfect strategy. This makes it difficult for brokers to find traders as the market is too volatile on its own.
If you master this strategy, you can become a profitable trader-trading boom and crash and leave the other signals alone. This strategy works best during a boom, but you have to ensure that it is a downward trend that you see over a long period of time, whereas during a boom the opposite is the case. The lie of this trading strategy is to respect price actions.
You can draw a trend line if you are good at it, but if you find it difficult to draw it, use an indicator like the exponential moving average (EMA) from period 13. If the EMA shows up in the timeframe, you know that it is on a downward trend and it is certain that trade is booming and plummeting, and the opposite is the case. In the diagram below, the boom in the 500 index is in the time frame of 1 hour and the two arrows show the EME 200, which confirms the direction of the trend.
Once the zone is identified, it can be used for several days until the boom in the 500 market subsides. Make sure you are booming when you are on a downward trend, and crashing when you are on an upward trend.
For those of us who trade, we are looking for a spike that will devour more than 10 small candles that we will hold until the market reaches EMA9, if the market stops rising, we will cash in. If we get a spike, we are waiting for the market to reach EME9, and if it breaks through, it should be no more than 3 small candles before we leave trading and use crash and boom. For the trading boom, the RSI indicator should be strong in the buying region (price lower limit) and for Crash 500 in the selling zone (price upper limit).
Wait in the M1 timeframe until EMAas and RSI are in an overbought area. If the 50% EMA exceeds 200EMA and goes down, this indicates a strong signal to start selling, as our condition for the RSI is met. When a spike comes, wait until the price drops back below $13 before re-entering.
There are times when it is difficult to study the tricks of the market, because there is no 100% perfect strategy. In this case, you will never know which is the best solid trading system for you as a trader.
Mastering the trade in boom and crash requires a good knowledge of market trends, charts and discipline. Trading in a boom or crash requires good analysis, as the trader must recognize support and resistance before entering the trade.
A number of traders, both experts and beginners, had problems with the market structure of boom and crash. For example, one can trade boom-boom-500, boom-1000, and crash-crash-500-1000 assets to observe the boom market, sell default assets, and buy crash assets to buy default. For currency pairs, the boom / crash structure can be bought and sold with spikes or even periods of ticks.
Synthetic indices imply the coagulation of many simulated markets, including boom and crash indices. These are profitable indices such as the boom / crash index and the volatility index. The boom-and-crash trading strategy will be explained in the following two strategies.
When I started trading boom and crash markets, I started my trading adventures as a scalper. In fact, in my first year of trading, I experienced more than 95% of the boom / crash traders I met as a scalper. This confirmed to me that there are peaks and booms, buy / crash, sales situations, low risk / return ratios, days of swing trading and small lot sizes in the way the market is structured.
Trade alone is not a game of chance; a proper business should be conducted on the basis of strategy and principles. Make sure you comment and share at the end of this article to help others.
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