Instructions for using Pocket Option indicators
Determining the trade's starting points is an essential aspect of the job at Pocket Option. It is up to you how you apply this knowledge. Traders frequently use the phrase "trade the trend." This implies that rather than avoiding trends, you must follow them. You should start a long position if users control the market. In this instance, sellers should use short positions to maintain control of the situation.
How to Connect Pocket Option to an Indicator
Go to the site and choose the asset you wish to trade to begin using indicators on the Pocket Option. Configure your settings and select your favorite chart type. Next, select the "Setup" option under the Graphical Tools section.
The indicator tools are located on the left side of the Pocket Option interface. With percentage figures available at the top of the screen for reference, the indicator display usually has red at the top and green at the bottom.
Understanding the Stochastic Indicator
A strong tool for assessing price momentum, the stochastic indicator aids traders in making well-informed choices while trading options. Using a percentage range of 0 to 100, it determines the correlation between the closing price and the high-low range during a certain period of time.
- Above 80%: Denotes a positive trend when the closing price is close to the range's upper border.
- Below 20%: Indicates a negative trend since the closing price is close to the lower threshold.
Bullish momentum is indicated when the market closes in the upper half of the daily range. On the other hand, bearish momentum is indicated by a closure in the lower half.
The Stochastic Indicator works well with other indicators for more precise insights, even if it is very successful during sideways markets. One of its specific uses is finding the best entry points to optimize binary options profits.
By quantifying the magnitude of price swings, the indicator helps traders predict future price movements and enhance trading results.
It is commonly used with other signals at Pocket Option to create a unique and successful approach. When trading binary options, it is best to use short-term operations and highly volatile assets only during ups or downtrends.
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Keltner Channel Indicator
One useful tool for spotting possible market movements is the Keltner Channel. Its application is simple in the past:
- Upward Breakout: Traders should think about initiating long positions when the price breaks above the channel, indicating a bullish trend.
- Downward Breakout: A bearish trend is indicated when the price drops below the channel, allowing a sell order to be placed.
These breakouts represent Strong price moves, which frequently signal the beginning of a new trend. Furthermore, the borders of the channel frequently coincide with important levels of support and resistance, which makes them useful for market research.
Advanced Use of Keltner Channels for Intraday Trading
Expert traders have created an intraday trading strategy that mostly uses the Keltner Channel but incorporates additional indicators for validation. Up until H1, this technique is applicable to all currency pairs and periods. Additionally, the ADX indicator must be adjusted to a period of 14 and a level of 30 in order to validate trade signals.
Why Use the Keltner Channel?
Whether there is a large decline or a dramatic increase in price, the Keltner Channel unmistakably shows aberrant price fluctuations. Because of this, it works especially well when trading binary options, where making accurate selections quickly is essential. Online traders looking to profit from market volatility favor it because of its track record of accuracy in identifying trading opportunities.
There are 3 values in the Keltner Channel:
1. The middle line is the 20-period exponential moving average, the average value between the top and bottom.
2. 20 EMA + (2 *ATR) is the top line.
3. 20 EMA - + (2 *ATR) is the bottom line.
An exit outside of the range indicates a buy or sell indication.
Bollinger Bands Indicator Overview
An effective tool for assessing market volatility and spotting trading opportunities is the Bollinger Bands Indicator. It assists traders in determining if a market is oversold or overbought so they may make wise choices. This indicator, which works with more than 30 cryptocurrency exchanges and covers more than 5000 cryptocurrency pairs, is particularly useful for binary options trading.
How Bollinger bands work
The indicator is frequently employed with daily candles, and the duration of the SMA (Simple Moving Average) determines how useful it is:
- Longer SMA: Generates fewer signals, but they are generally more reliable.
- Shorter SMA: Provides more frequent signals, though their reliability may be lower.
Moments of band expansion or contraction are frequently noted by traders since they indicate the best times to purchase and sell. Contraction denotes less market volatility, whereas expansion signals higher volatility.
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Combining Bollinger Bands with Other Indicators
Bollinger Bands and the Keltner Channel are commonly used together for a more thorough market analysis because of their similarities. By combining these indicators, trading signals are strengthened, and market movements can be better understood.
Although traders have the option to manually examine these indications, automated trading tools are available to expedite the process and save time. These programs provide accuracy and efficiency in determining the optimal entry and exit positions.
The Bollinger bands also have three lines:
- Average: Simple Moving Average, or SMA.
- 20 SMA plus (2 * standard deviation) is the upper limit.
- 20 SMA - (2 * standard deviation) is the bottom limit.
It is worthwhile to make a deal when the quotations chart crosses the indicator's limits.
Binary options using indicators!