Despite the simplicity of trading binary options on Pocket Option , it is recommended to carry out transactions with electronic contracts, adhering to a certain strategy . Otherwise, trading will be like gambling. After registering on the Pocket Option broker website, a beginner is faced with the fact that he needs to understand the peculiarities of the operation of indicators, oscillators and other technical tools.
The “Ladder” system has been created especially for novice traders, which allows you to immediately start trading binary options. To work with this strategy, you need to select the “Japanese Candlesticks” chart in the Poketoption terminal.
The nuances of working with candlestick charts
The Ladder strategy does not involve the use of technical tools. It is based on the analysis of a candlestick chart, the principles of its formation must be understood before trading. Thanks to this knowledge, you can later find good moments to open a deal.
Rectangles (or candles) are constantly forming on this chart. Their “body” is the distance between the opening and closing prices. In the Pocket Option broker terminal, candles that are formed during a downtrend (when the opening price is higher than the closing price) are colored red. In an uptrend (the closing price is higher than the opening price), green rectangles appear.
At the top and bottom of each candle, segments (or shadows) appear that show the maximum and minimum price, respectively, reached by the trading asset in the process of forming one such rectangle. In another way, this period (or the time spent for the formation of a candle) is called a time frame. The latter indicator can be configured in the Poketoption terminal. Let's say a trader has set the H1 timeframe. This means that the candle on the chart will form within one hour.
Despite the fact that experienced traders use more data when working with a candlestick chart, the information provided will be sufficient for trading using the “Ladder” strategy.
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 .
Rules for using the trading system
Trading within the “Ladder” strategy is possible subject to a number of rules:
- You should only trade highly volatile assets. That is, prices must change constantly and at a fairly high speed.
- The optimal timeframe is M5.
- The expiration date of the contract must be less than the candle formation period.
- Do not trade before or after the release of important news.
- Place orders to buy/sell the minimum possible volume of an asset.
To increase the effectiveness of the “Ladder” strategy, the Pocket Option broker recommends adhering to the Martingale principle when trading. This means that in the event of a losing trade, you need to increase the value of the next contract.
How to work with strategy in Pocket Option
As part of the strategy under consideration, you need to buy Call options if the following conditions are simultaneously met:
- The trend is upward (candles are colored green).
- Two candles in a row are formed in the same direction.
You need to open a deal at the moment when the next candle is at least one point higher than the high of the previous one.
Transactions to purchase Put options are made in the opposite situation. That is, such orders are placed at the moment when the next red candle falls below the low of the previous one.
The above rules for trading on Pocket Option using a candlestick chart are mandatory. The fact is that by adhering to the described strategy, the trader will receive frequent signals, some of which will turn out to be false. By following the Martingale principle and trading with a minimum volume, you can both minimize possible losses and increase your overall income.
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