Pocket Option Trading Strategies
Pocket Option is a leading trading platform. Learn proven strategies, see real success stories, and gain insights to boost your trading results.
Pocket Option: Trading Strategies
Pocket Option offers a wide range of strategies for effective trading in financial markets. Using proven analytical methods allows traders to optimize their trades and minimize risks. It is important to understand that each strategy requires thorough study and practical testing before being applied to a real account.
Main Approaches to Trading
Pocket Option trading strategies can be divided into several categories:
- Candlestick Pattern Analysis – a method based on interpreting Japanese candlestick combinations.
- Support and Resistance Levels – identifying key points on the chart where the price may change direction.
- Indicator Analysis – using technical indicators to predict price movements.
- News Trading – a strategy focused on market changes following significant economic events.
- Combined Methods – merging multiple approaches to enhance forecast accuracy.
Candlestick Analysis in Trading
Candlestick analysis is one of the most popular methods, helping traders identify potential trend reversals or continuations. This method relies on studying price charts and recognizing candlestick combinations.
Key Candlestick Strategies
| Strategy | Description | Trade Signal |
|---|---|---|
| Engulfing Pattern | Forms when one candlestick fully overlaps the previous one. | Trend reversal upon confirmation by the next candlestick. |
| Squatting Candlestick | A small body with a long shadow, indicating market uncertainty. | Possible trend reversal when additional confirming factors appear. |
| Tweezers | Two candlesticks with identical extremes but opposite directions. | A strong reversal signal, especially when combined with other patterns. |
| Three Methods | Formation of small candlesticks after a long one within the current trend. | Confirmation of trend continuation when a new long candlestick appears. |
Practical Trading Examples on Pocket Option
Each trading strategy requires clear understanding and proper application. Below are detailed step-by-step examples of using key trading methods on the Pocket Option platform.
1. Practical Example: Engulfing Pattern (Trend Reversal)
- Asset: EUR/USD
- Timeframe: 5 minutes
- Signal Search: Identify the engulfing candlestick pattern on the chart. The body of the new candlestick must fully overlap the previous one.
- Trade Signal: A large candlestick fully engulfs the previous one.
- Trade Execution:
- If the candlestick is bullish → Higher ($5, expiration 5 minutes).
- If the candlestick is bearish → Lower ($5, expiration 5 minutes).
- Outcome: If successful, the return is 80% ($9 from $5).
Trading with Support and Resistance Levels
This trading method is based on analyzing price levels where an asset has historically changed direction.
Types of Level-Based Strategies
Breakout Trading
- A trade is opened when a candlestick closes beyond a key level.
- It is important to wait for confirmation from the next candlestick before entering.
Rebound Trading
- A trade is opened when the price fails to break through a level.
- Candlestick analysis is used as confirmation.
2. Practical Example: Trading with Support and Resistance Levels
- Asset: GBP/USD
- Timeframe: 10 minutes
- Signal: The price reaches a resistance level but fails to break through.
Trade Execution:
- If the price touches resistance and does not break → Press Lower ($10, expiration 10 minutes).
- If the price bounces off support → Press Higher ($10, expiration 10 minutes).
Result Analysis:
- A successful trade yields $8 profit.
- An unsuccessful trade results in a $10 loss.
| Trade | Level | Direction | Result | Profit/Loss |
|---|---|---|---|---|
| #1 | Resistance | Lower | Price dropped | +$8 |
| #2 | Support | Higher | Price increased | +$8 |
| #3 | Resistance | Lower | Price broke the level | -$10 |
Indicator Analysis
Computer-based indicators help analyze the market and identify potential entry points.
Popular Pocket Option Indicators
- Moving Average (SMA) – Determines the trend and is used to find signals for trend reversal or continuation.
- Bollinger Bands – Help assess market volatility and potential entry points.
- Alligator – A trend indicator signaling the start of a movement.
3. Practical Example: Indicator Strategy (Moving Average)
- Asset: USD/JPY
- Timeframe: 1 minute
- Signal:
- Set SMA 50.
- Identify the trend: if the price is above SMA, the trend is bullish; if below SMA, the trend is bearish.
- Price crosses SMA from above → Sell signal (Lower).
- Price crosses SMA from below → Buy signal (Higher).
Trade Execution:
- If crossing downward → Press Lower ($5, expiration 3 minutes).
- If crossing upward → Press Higher ($5, expiration 3 minutes).
Result Analysis:
- A successful trade yields $4 profit.
- An unsuccessful trade results in a $5 loss.
News Trading
The market reacts to significant economic events, creating opportunities for short-term trading.
Key Principles of News Trading
- Identifying important events with a high probability of influencing price movements.
- Analyzing previous market reactions to similar events.
- Using pending orders for quick trade execution.
4. News Trading Example
- Asset: EUR/USD
- Timeframe: 5 minutes
- Signal: Release of U.S. unemployment data → a strong price movement is expected.
Trade Execution:
- After the news is released, the market rises sharply → Press Higher ($20, expiration 5 minutes).
Result:
- The price increased, and the trade closed in profit (+$16).
News trading strategies can be tested on a demo account before applying them to the real market while following money management rules.
Capital Management
Effective risk management is the key to successful trading. Pocket Option recommends:
- Setting daily loss limits.
- Not risking more than 2-5% of the deposit per trade.
- Applying the "two consecutive losses rule", which means stopping trading after two consecutive losing trades.