Trading binary options on Pocket Option using the Reversal strategy has one feature: the trade is opened immediately after the trend changes. In this case, the price should be close to the support or resistance level. A signal for this strategy is a situation in which the next candle reaches the specified limit, but closes without breaking through it. Moreover, she can touch this level either with a shadow (a segment protruding from above or below) or with her body.
Also, traders at the Pocket Option broker consider as a signal to buy an option the moment when the candle closes in close proximity to this limit or its shadow has crossed this level. But it is not recommended to open a deal right away. You need to place an order to buy an option when the next candle opens in the opposite direction.
Also, do not forget that you can start trading with additional funds by using promo codes for replenishing your account from the Pocket Option broker, and to improve your performance with this strategy, you can use a promo code to cancel a losing trade for $10 .
Trading rules for this strategy in Pocket Option
The principle of trading on Poketoption using this strategy comes down to the following:
- You cannot open a trade if the candle has broken through support or resistance levels.
- The candle must close by touching this level with its body or shadow.
- After closing the candle, you need to wait for the price chart to rebound in the opposite direction from the level.
- Open a trade in the direction of the rebound. That is, you need to buy a Call option if the new candle is directed upwards, and a Put option - downwards.
Trading examples
Example of a position to buy a Put option:
Example of a position to buy a Call option:
An example of a price rebound from support lines:
Example of a rebound from a resistance line:
When constructing support and resistance levels, you need to take into account that such boundaries are determined by the price. To check the strength of this limit, it is recommended to look at the history of early transactions on the chart and see how part of the price reached this limit, but did not break through it.
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See also:
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