Strategy for Quotex "Hunting"

In binary options trading, you can either double your deposit or lose all your money in a few hours. Therefore, successful traders try to limit the amounts, trying to minimize the risks in case of a change in the market trend . However, this format of operations does not allow you to earn money using the simple and understandable functions available in the Quotex platform . To make a profit, speculators only need to use a chart and one indicator .

Before you start buying options, don't forget that you can reduce your trading risks by using the Quotex Loss Cancel Promo Code . This will allow you to always cancel any $10 loss trade.

Basic tools

To understand how to make money on Kvotex strategies , you need to know the principles of chart analysis and the functional features of Alligator . Both approaches provide the analyst with effective signals , the strength of which increases with the combination below.

Alligator is one of the popular methods, which is based on the indicators of smoothed moving averages with periods:

• 5;
• 8;
• 13.

The principle of operation is based on a mathematical formula, which first uses an indicator obtained by smoothing the average. The latter is calculated using SMA. The reason for choosing this name is due to the figure that is formed on the screen of the trading terminal by three lines:

• Jaw;
• Teeth;
• Lips.

The moments for entering the market are determined by the intersection of the specified charts. The moving average, which forms the Jaw, moves slower than the others; the Lips - faster. The main principle of trading is as follows: you need to trade when the alligator starts "hunting". That is, transactions should be made when the directions change.

The screenshot above shows the moment when a signal appears to purchase a Put contract. This is confirmed by the fact that the "mashki" do not intersect and move downwards. However, to understand the specifics of such transactions, you need to take into account the direction of the quotes. In the example, the price moves after the speculator who purchased the Put option.

In order for investments to generate income within the framework of the described method, it is worth using additional confirmations provided by:

1. Relative Strength Index with a period of 14. It would also be better to delete all levels except for the 50th. Thanks to this tool, you can understand how overbought or oversold the selected asset is. That is, the index visualizes the real strength of bears or bulls and helps to determine the probable moment of reversal.
2. Stochastic Oscillator . Stochastic compares the closing price of a selected asset with a range for a given time. The sensitivity of the oscillator can be adjusted depending on the selected system. In particular, traders change the range that is analyzed. The stochastic oscillator is used to obtain indications of overbought or oversold conditions. To avoid errors, do not make changes to the settings suggested by the Quotex platform.

The stochastic oscillator in the trading window is displayed as 2 lines. One shows the current value of the selected analysis asset, the second is a three-day simple moving average.

When to Place Call and Put Orders

Trading in the described conditions is recommended on small timeframes (5-15 minutes). At the same time, orders with a short expiration period should be placed: after the formation of the second or third candle. It makes sense to buy a digital Call contract if the "crocodile" has started to "hunt", and the rest indicate an upward movement of the rate. Such positions can be opened when the RSI crosses the 50th level, and the fast moving stochastic crosses the slow one from bottom to top.

Put options should also be opened when the alligator starts to "hunt". But such operations within the framework of the Quotex strategy can be carried out if the indicator is directed downwards. This indication is confirmed (i.e. the transaction should be carried out) if the Relative Strength Index falls below the 50th level. At the same time, the fast stochastic line should cross the slow one from top to bottom.

Conclusion

This trading method is considered easy to understand, since for successful trading it is enough to use three types of signals received from Alligator, RSI and Stohastic. It is important to analyze changes in quotes. If the direction of the rate and stochastic diverge, this may indicate a reversal.

In particular, such situations are observed in a bear market when the price reaches another minimum. If at the right moment the stochastic shows a higher minimum than before, then this may indicate an imminent reversal. Such discrepancies indicate that the bears have exhausted their options.

RSI and Stohastic both indicate current momentum, but are based on completely different mathematical formulas. Because of this, the Relative Strength Index and Stochastic are often used together. Stohastic is based on the assumption that the closing price is in the same direction as the actual trend. Therefore, it is more effective to use this approach in low volatility situations , when the price moves within certain boundaries.

The given format of conducting trading positions is considered a simplified version of trading based on Alligator. Therefore, to increase the chances, it is recommended to use the different opportunities that the Quotex platform provides together, and not separately.

OPEN ACCOUNT WITH QUOTEX

Can't figure out how this strategy or indicator works? Write about it in the comments to this article, and also subscribe to our YouTube channel WinOptionSignals , where we will definitely analyze all your questions on video.

See also:

How to open an account with Quotex

How to verify your Quotex account

Quotex Broker Affiliate Program