In this course package you will learn how to trade indices such as BOOM and CRASH. Turning to the BOOM & CRASH trading strategy, I will explain two strategies. The BOOM / CRASH Scalper will help BOOM / CRASH traders make quick profits trading BOOM or CRASH indices.
Forex trading can be difficult for newcomers, because the first problem you face is learning the best strategy to make good money. Boom and 500 and Crash 500 are synthetic index aspects of foreign exchange trading, they are market tick based simulations of stocks, every time there is a single futures asset (boom and 500 simulates 100 company shares) and it knows all the components, it is difficult to study the tricks of the market because there is no 100% perfect strategy. This makes it difficult for brokers to play traders because the market is so volatile on its own.
A number of traders, both experts and novices, had problems with the market structure during the boom and crash. The currency pairs during booms and crashes are structured to buy and sell with spikes and even phases of ticks.
If, for example, Boom-Boom-500, Boom-1000, Crash-Crash-500 or Crash-500-1000 are traded, an asset can be observed in a boom market by being sold in default and in a crash asset by being bought in default. The synthetic index 500Crash1000 and Crash-500 is an aspect of foreign exchange trading where Crash 500 is the average of the one drop in the price range that occurs every 1,000-500 ticks. In the boom 1000 and 500 indices, the average is the only increase in the price range that occurs every 1000-500 ticks.
Trade booms and crashes require good analysis; traders need to recognize support and resistance before entering a trade. The beginning of a trading boom and a crash in the markets is like the beginning of a trading adventure with a scalper. In fact, in my first year of trading, I experienced more than 95% of the booms and crashes that traders are allowed to experience with scalpers.
Figure 5-7 shows the price action tables observed in crash and boom markets. This confirms the way the market is structured, with peaks and booms, buy / crash / sell situations, low risk / return ratios, days of swing trading and small lot sizes.
If we are caught in a quandary, we should wait for the market to reach EMA9, and if the market with more than 3 small candles breaks out of the area, then we should stop trading and apply crash and boom. In retail, the boom RSI indicator is a strong buying region (price floor) and the crash 500 RSI indicators a strong selling zone (price ceiling). Once a zone is identified, it can be used for several days until the boom 500 market dies.
For those of us who hold trades, we are looking for a spike that will devour more than 10 small candles that we will hold until the market reaches EMA9, if the market stops rising, we will cash out. Wait in the M1 timeframe until EMAs and RSI are in an overbought range. If the 50% EMA exceeds 200EMA and goes down, this indicates a strong signal to start selling, as our conditions for the RSI are met.
If the right batch sizes are used, the trading boom and crash will not lead to a capital loss in a short period of time. What lies ahead is a trading strategy that respects price actions. A crash below $500 should respect the resistance and support of the traded asset.