When you go through this article and the previous one in which I will be providing the links you will not only know the best time frame to trade step index but you will also understand the basic concept of trading and how to apply it in real-time in trading any financial instrument.
There are many ways to approach the synthetic market; whether you are a long or short-term trader one pivotal truth is that financial instrument trading will always obey fundamental trading principles like market structure.
This fundamental trading principle cuts across all trading styles and concepts including the best time frame to trade step index. Let’s dive in to learn more.
WHAT IS THE STEP INDEX?
Step index is a uniquely designed Deriv index that has an equal probability of up/down movement in a price series with a fixed step size of 0.1.
BEST TIME FRAME TO TRADE STEP INDEX
There is no best time frame to trade step index because the market structure of step index is always changing.
Having stated that it is far better to concentrate on market structure rather than a certain time frame.
As a synthetic trader, performing a multiple timeframe analysis will help you identify the best timeframe for entry.
In conclusion, I pay attention to the H1 timeframe more in step index.
STEP INDEX SCALPING STRATEGY
The safest and simplest way to a step index scalping strategy is to first identify the dominant trend on H1 so that you can scalp in the direction of the trend.
For clarity scalping involves trading in the lower timeframe from 1 minute to 15 minutes; note that scalping step index means not staying too long in a trade.
In conclusion, scalping step index involves paying attention to the basic market structure on a lower timeframe after identifying the dominant trend.
See the visual image below for a detailed explanation:
In the above, the 5 minutes step index scalping aligns with the dominant trend on H1
STEP INDEX ONE MINUTE STRATEGY
Step index one minute strategy can be very profitable when done correctly.
To trade step index in one minute successfully you have to
- Identify the dominant trend on 30 minutes
- Wait for pullback
- Identify market structure in one minute and the entry point
- Take profit at the next resistance or support.
Note that I did not mention indicators because all you need is market structure knowledge.
See the visual images below for a detailed explanation:
WHAT MOVES STEP INDEX
The step index is backed by a cryptographically safe random number generator that is available for trading 24 hours a day, seven days a week.
With step index, a price series with a fixed step size of 0.1 has an equal chance of moving up or down.
While reflecting conventional financial markets, the step index is unaffected by world events.
Having said that, it is conceivable for step index movements to coincide with market structure pattern formations for the sake of technical analysis trading.
STEP INDEX ANALYSIS
There is an assurance that comes with step index analysis and other synthetic indices.
knowing that there will be no sudden global event to disrupt the dominant trend or the market structure pattern formed gives synthetic traders the confidence that when market analysis in this case step index is done correctly.
The Order flow would continue in the set direction.
STEP INDEX CHART
A step index chart is a basic view showing the price movement of step indices with a buy and sell option for synthetic traders. It also comes with all the needed default tools for technical analysis trading.
BEST TIME FRAME STRATEGY FOR STEP INDEX
The best strategy for step index trading will always remain market structure trading which entails the use of support and resistance, trend lines, chart patterns, multiple timeframe analysis, Fibonacci retracement with support and resistance, and more.
In my previous article I have explained how to trade step index; feel free to read up to know the best strategy for step index.
Below, you will find the frequently asked questions on the best time frame to trade step index.
WHAT IS THE 5 3 1 RULE IN TRADING?
According to the 5 3 1 rule, you should only trade five currency pairs (to obtain a thorough understanding of how the pairs move), three trading techniques, and at the same time of day (to become acquainted with what the markets are doing at that time).
HOW DO YOU TRADE A 5 – MINUTE TIMEFRAME?
You trade a 5 minutes timeframe by first identifying the dominant trend on H1 then joining the trend after a retracement and a breakout of market structure on 5 minutes timeframe.
HOW DO I TRADE THE 4TH TIMEFRAME?
You can trade a 4H timeframe by first identifying the dominant trend and then joining the trend on a lower timeframe with a break in the market structure.
CONCLUSION
As a trader, whether forex, synthetic, or otherwise, it is critical to recognize the market’s prevailing trend because it overrides all time frames.
All time frames contribute to the dominating trend and are consistent with trading fundamental concepts.