The first thing you need to understand is what is Pocket Option. It is a wonderful broker that can be used to trade Binary Options all over the world. If you are not familiar with Binary Options. We highly recommend you take the free training at the http://blwtradingacademy.com/
Pocket Option Strategy Setup
Now we will see the configuration of this great strategy. The first thing you have to do is log in on Pocket Option and go to the candlestick area. Then click and choose the candlestick time frame. Select s30 which actually means 30 second candlesticks. This means that after 30 seconds the candlesticks will expire.
When the time reaches 0 a new candle will start to form.
Next, you will add the indicators! You will be able to do technical analysis on your charts, amazing right? You will only need the RSI and it will be automatically added to the chart.
The second indicator for this Pocket Option strategy is the so-called stochastic oscillator. You will have to make sure that the settings of the indicators are ok. So, click on the pencil and the RSI levels should be 70 and 30. If you want you can add a bit of thickness to the lines. The percentage period should be 14, and super important, the moving average should be SMA. Don’t change that, then hit he save button on Pocket Option. As simple as that! Remember to watch the video below if you want more details.
How does this Pocket Option strategy work?
The strategy will actually be looking for overbought conditions. This means that the price of an asset is going up. So, if the price is falling it will eventually be oversold, quite the opposite, the price will have small retractions.
How to identify an oversold? Overbought condition in RSI is whenever the price or the moving average is very close to or touching the 70 level. And, at the same time it has to be overbought in the stochastic oscillator. And that is when the price is over, not touching but above the price of the 80 level. So, when that happens you enter a short position for a minute, and you will win the position!
The best entry points!
Now let’s talk about the best entry point for these signals. Obviously, the best entry point for these trades is going to happen when the RSI is restless. So, if you enter at the moment when it touches and continues to rise, do not enter that trade because then it is overbought.
When the RSI is not touching all the way and you cross over into oversold stochastic. But there is a third criteria that you need to know and that is basically when there is a cross over in the stochastic oscillator lines, the blue line must be crushing the red line.
What are the best times to trade with this strategy?
It is super important that you do not trade on the news. Remember that there is a very high volatility in the market when trading on the news. So, what you will have to do is wait at least one hour after and one hour before the news. The next good time tip would be 11, 12 and 13 GMT with this specific strategy, so make sure you enter those times, try to pick the highest paying pairs.
What are the best pairs with this strategy?
The best pairs to trade with this strategy are AUD/CAD, USD/CAD, GBP/UA, AUD/EURO, JPY/EURO, USD/AUD, USD/EURO, CAD/EURO, AUD/EURO, GBP/CAD AND AUD/ JPY. Make sure to set up each pair. It is super important that you do not trade CHF as this pair does not respect oversold and overbought conditions.
Conclusion
This new Pocket Option strategy is very good and very profitable. We hope that you follow all the indications that we shared with you, as well as the best moments and pairs in which you can apply this incredible strategy!