Popular Pocket Option Strategies for Beginners

Many beginner traders wonder how to make accurate predictions in binary options trading. There isn’t a straightforward answer to this question. Experienced traders advise not to rely on luck but to develop a personal trading method. Today, we’ll explore four of the most popular Pocket Option strategies for beginners to help you gain an edge in the market.

Table of contents:

• Strategy 1: Trend Following Strategy
• Strategy 2: RSI (Relative Strength Index) Strategy
• Strategy 3: 60-second Strategy
• Strategy 4: 3 Minute Strategy
• Final Thoughts

Strategy 1: Trend Following Strategy

Trend trading is the most popular pocket option strategy among beginners, and for good reason. It helps traders understand market mechanics better and increases their chances of profiting from binary options trading.

The concept is straightforward. While the price moves in one direction, like upward, traders should only open positions that way. Why? The price is more likely to continue upward than to reverse. This phenomenon occurs because different groups of traders participate in the market. When most act in one direction, such as buying a particular asset, it creates an imbalance between supply and demand.

This imbalance drives prolonged, single-direction price movements, known as a trend. When a trader opens trades solely in the direction of the primary trend, he’s trading with a method known as the Trend-Following strategy.

How to Trade with the Trend

Trading with the trend is simple. All you need to do is learn how to identify market trends. To master this skill, we recommend reading this collection of articles on our site:

• How do trends work in the markets?
• We are identifying and using bullish and bearish trends.
• Market phase shifts.
• How do we recognize a flat market?

In a bullish trend, new highs alternate with higher lows; in a bearish trend, new lows alternate with lower highs. We've noticed an interesting aspect: trend trading works equally well across all asset types. The only requirement is to find a strong trend. Since binary options allow you to profit from rising and falling prices, your trading journey becomes even more engaging.

The image above shows the Pocket Option platform with a EUR/USD currency pair chart in a one-minute timeframe. The yellow line represents a bullish trend. As you can see, after each breakout of the local high, the EUR/USD rate continued to rise. It visually demonstrates the main property of a trend: moving in the direction of its primary tendency.

We've highlighted three potential Call option trades on the chart, but there are more. We encourage you to search for these opportunities yourself and share in the comments where else you would buy Call options. This exercise will help you understand binary options trend trading.

The rules for trading the Trend-Following Pocket Option strategy for Call and Put options are in the table below.

Choose an expiration time of 3 candles or more. Adjust the holding period based on the asset and the backtesting results on historical data.

Strategy 2: RSI (Relative Strength Index) Strategy

Among the technical indicators widely used in financial markets, the Relative Strength Index (RSI) holds strong popularity. Traders have used this indicator for years in both Forex trading and binary options.

Trader Welles Wilder created the RSI back in 1978. It’s classified as an oscillator, as its values range within a limited scale from 0 to 100. According to Wilder, the market becomes overbought when RSI rises above 70 and becomes oversold when it falls below 30.

Looking at the price data above, you’ll notice that when the blue RSI line drops below 30, EUR/USD quotes bounce upward, showing seller exhaustion – the market is oversold. Conversely, when the blue RSI line breaks above 70, a price pullback occurs because no buyers remain willing to purchase at such high levels – the market is overbought.

The concepts of “overbought” and “oversold” form the foundation for interpreting RSI readings. The image above shows that RSI performs well in flat market conditions. Hence, traders frequently use it in scalping Pocket Option strategies.

To successfully apply the RSI Pocket Option strategy, start by finding a market that trades within a wide price range. We reviewed several currency pairs available on the Pocket Option and selected USD/JPY. When writing this review, the U.S. dollar traded against the Japanese yen within the 153.30 - 153.70 corridor. It fits our criteria perfectly – no strong trend is present.

The table below presents the rules for trading the RSI Pocket Option strategy for Call and Put options.

Choose an expiration time of 1 to 3 candles. Adjust the holding period based on the financial instrument and the backtesting results on historical data.

Strategy 3: 60-second Strategy

The Pocket Option strategy with a 60-second expiration time is a form of scalping – a high-yield trading strategy based on chart patterns and technical analysis. With the 60-second Strategy, traders can quickly profit from short-term price fluctuations of the underlying asset.

This trading style aims to place numerous trades quickly, intending to profit from minor price shifts. We have tested this approach and can confirm that a high level of concentration and an understanding of how to identify a market trend will be required from the trader.

To successfully apply this Strategy, beginners should have strong technical skills and emotional resilience. Psychology is crucial, as making intelligent decisions in online trading requires a steady mindset.

Preparing the Pocket Option platform for scalping

The quality of trade signals in your scalping strategy will depend on the proper setup of your trading platform. So, let’s review the steps to set everything up correctly:

1. Select an appropriate asset:Choose an asset with a clear trend.
2. Set the timeframe:Select the M1 interval for your asset’s chart.
3. Set the expiration time:Choose a 1-minute holding period for your trading position.
4. Determine trade size:Set your position size, and avoid setting this parameter above 2% of your deposit.
5. Select indicators:Add a simple moving average with a 21-period setting and the stochastic oscillator (5,3,9) to your chart.

How to Trade with the 60-second Strategy

1. Market Trend Analysis:Check price positioning relative to the SMA (21) to determine trade direction. If prices are above the moving average, buy only Call options; if below, buy only Put options.
2. Filter Application:
   1. Use the Stochastic (5,3,9) as a confirmation for trade signals.
   2. Buy a Call if the Stochastic lines cross upwards and remain outside the overbought zone.
   3. Buy a Put if the Stochastic lines cross downwards and stay out of the oversold zone.
3. Trades:Buy the option with a 1-minute expiration once the conditions for opening a position align.
4. Trade Analysis:Track your trade stats and adjust indicator parameters as needed.

You can achieve the best results with the 60-second Strategy by applying its signals consistently and with discipline. Before using it in live trading, test it on a demo account without the risk of real money.

The table below presents the rules for trading the 60-second Pocket Option strategy for Call and Put options.

Choose an expiration time of 1 candle.

Strategy 4: 3 Minute Strategy

Candlestick patterns and indicators can be the basis of a new strategy that we are about to discuss. We called it the “3-minute strategy” because of its three-minute expiry. It is recommended that you use it to make money on Pocket Options.

The trading strategy uses familiar indicators: the simple moving average, Stochastic, and RSI, as well as two candlestick patterns: “Shooting Star” and “Hammer.”

These patterns directly impact the price trend reversal. Traders often use them to determine the optimal moment to open a trading position. As a rule, these patterns indicate reliable entry points. We have tested and can confirm this.

The only nuance is that you should take into account the publication of important macroeconomic data, which you can learn about from the economic calendar. We do not recommend opening trades during significant news events. Wait for a more suitable time. For more on effectively using news in binary options trading, see our article, “Economic Calendar”.

Preparing the Pocket Option platform for 3 Minute Strategy

To trade using the 3-Minute Strategy, the trader needs to set up all the essential tools:

1. Chart:Set the asset chart to a 1-minute timeframe.
2. Indicators:Add indicators to the chart, including a 50-period moving average, the Stochastic Oscillator (5,3,9), and the Relative Strength Index – RSI (14).
3. Expiration:Set the expiration time to 3 minutes.

How to Trade with the 3 Minute Strategy

To open a trade with the 3-Minute Strategy, the trader waits for these conditions:

1. The asset’s price has moved significantly away from the 50-period SMA.
2. The Stochastic (5,3,9) is in the oversold zone.
3. The RSI (14) is around 30, indicating an oversold market.
4. A “Hammer” candlestick pattern appears.
5. Buy a Call option at the open of the new candle.

The table below presents the rules for trading the 3 Minute Pocket Option strategy for Call and Put options.

Choose an expiration time of 3 candles.

Final Thoughts

In conclusion, we want to highlight a few crucial points. Realize that pocket option trading is not just about candlestick charts and indicators but also about the right attitude. Your mindset and discipline are no less important than the trading rules of specific strategies for binary options. After all, it is not the trading strategy or some indicator that earns money but the trader. The final result will depend on how accurately and consistently you will make informed decisions according to the rules.

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