The volatility 75 index is not for the faint-hearted especially if you are a beginner trading the synthetic market on Deriv.
Traders also call this index V75, just as the name implies, they are volatile by design and require a reasonable account size(margin) so you can trade with confidence.
In this article, I am going to teach you how to trade volatility 75 index on MT5 but in order to achieve this goal, you will need the basic knowledge of technical analysis.
Just like in regular trading, concerning volatility 75 index, is not affected by global events(fundamental news).
Table of Contents
VOLATILITY 75 INDEX CHART
The V75 index chart consists of all the default necessary tools and indicators that a regular Forex trading chart has. To see an active V75 chart, you can download it from the Deriv website.
The demo or live version can be seen on web view or you can download the Apple or windows version.
Here is an Image of the volatility 75 index Chart (windows version).
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VOLATILITY INDEX TRADING STRATEGIES
It is difficult to be on consistent profit if you do not have a trading strategy, many beginner traders have been taught many things about trading that they call strategy.
Most of the time this strategy is a bunch of indicators on their chart which usually ends up leaving them more confused.
Yes, these indicators might work sometimes but for how long, to have good volatility index trading strategies, learning to identify market structure is inevitable.
Market structure is the mother of all synthetic trading strategies as all indicators respond to it.
Let me explain a bit about using market structure as a strategy for volatility index trading.
In market structure you will find; support and resistance, chart pattern, supply and demand, order block, and more.
When you learn to identify these structures on your naked chart, you will begin to see these structures as they form across all time frames.
In conclusion, when considering index trading strategies for volatility you should see beyond a bunch of indicators rather than see it from a professional perspective which is looking at the pure market structure and multiple timeframe analysis.
HOW TO ADD VOLATILITY INDEX ON MT5 (PHONE AND PC)
ON PC
After downloading the MT5 platform on your PC, move your cursor to the top left corner of the MT5, you will find an Icon directly under the file button (hover your cursor and you will see create a new chart and you will see the index you want to add.
However, if you can’t see it then move your cursor to the dollar sign/Icon($ show symbol list). The keyboard shortcut is Ctrl+U, there you will see all the index you want to add to your chart.
Here is a screenshot:
ON PHONE
After downloading the MT5 trading app on your phone, at the bottom left corner, you will find two opposite arrow signs, touch the sign, then on the top right corner, you will find a plus sign(+) touch the plus sign to see all the index you want to add to your mobile chart.
Here is a screenshot:
HOW TO TRADE VOLATILITY 75 INDEX ON MT5
Below are the 4 steps to take on how to trade Volatility 75 index on MT5:
- Look at a higher time frame to find the dominant trend, support and resistance zone/reversal zones
- Check on a lower time frame for multiple rejections
- Wait for a breakout and retest
- Take profit at support and resistance level (don’t be greedy)
RELATED: TOP SECRET ON HOW TO TRADE BOOM AND CRASH
VOLATILITY 75 INDEX STRATEGY
There are a thousand and one ways to trade the volatility 75 index, that being said there is no one strategy because at every time frame the V75 is respecting the market structure.
One thing that does matter is that the V75 index respect the market structure formed and this is the kind of V75 strategy you want to have for consistency in profit.
One essential volatility 75 index strategy is chart pattern.
Chart patterns are a part of market structure and are formed every day on V75 index across all timeframes, this pattern can be a continuation or reversal pattern and the market effectively responds to these patterns since it cannot be affected by global events.
WHAT IS THE BEST VOLATILITY TO TRADE?
This is a tough one as there is no straight answer to it, volatility indices all respect the basic principles of trading (market structure) so it wouldn’t matter the volatility you choose once you identify a structure and a good entry then you are good to go.
This is a tough one as there is no straight answer to it, volatility indices all respect the basic principles of trading (market structure) so it wouldn’t matter the volatility you choose once you identify a structure and a good entry then you are good to go.
However, some volatility indices are more volatile than others, so you must evaluate your account size and how much you are ready to risk per trade when deciding on the best volatility to trade.
Proper market analysis will filter out ranging volatility indices and focus your attention on trending volatility indices, allowing you to join in the trend continuation by putting into consideration chart pattern analysis (market structure)
To make it simple, the best volatility will be the trending volatility.
BEST INDICATOR FOR VOLATILITY 75 INDEX
I am going to make this real simple for you. Many beginners trading the V75 index always make the mistake of looking for the best indicator for volatility 75 index, what they actually need to learn is market structure and analysis, trust me I have been there, and the search for the best indicator for volatility 75 Index is an endless circle that will lead to nothing.
Indicators on their own are lagging unless you apply market structure, then it will become clear.
To crown this all up, what you should be searching for is how to trade forex with market structure.
VOLATILITY 75 INDEX ANALYSIS
To properly analyze volatility 75 index, you should have knowledge of market structure to identify support and resistance zone, reversal and retracement zones, how to use the Fibonacci tool, trend lines, and to identify chart patterns when you see one.
And of course top-down analysis on time frames. Know this and you will do a proper analysis on the V75 index.
HOW TO ADD BOOM AND CRASH ON MT5 PC
Adding boom and crash is as easy as adding any other index on MT5 and I have explained with a screenshot in this article above feel free to read through to see how to add boom and crash on MT5.
VOLATILITY 75 INDEX BROKERS
Volatility 75 is a synthetic index designed by Binary.com (Deriv) therefore at the moment of writing this article; they remain the only broker that offers the Volatility 75 index. I have been using Deriv (Binary.com) for years now to trade V75 and they are very efficient.
WHERE CAN I TRADE VOLATILITY 75?
The article just above this one talks about where you can trade V75; you can trade the V75 index on Deriv (Binary.com).
DOES MT5 HAVE A VOLATILITY 75 INDEX?
Yes MT5 has a large range of trading instruments including the volatility 75 index. With MT5 you can trade the currency market, synthetic market, and even Cryptocurrency.
WHAT DO I NEED TO KNOW ABOUT VOLATILITY 75 INDEX
Volatility 75 is a synthetic indices designed by binary.com which later changed to Deriv. the indices are volatile by design, therefore, require good experience in market structure understanding.
Volatility 75 can only be traded on the deriv MT5 platform and because of its synthetic design; it is not affected by global events (fundamental news) like the forex market. It is purely technical analysis trading.
HOW MUCH DO YOU NEED TO TRADE V75
I believe you mean volatility 75 index, first of all, V75 index on deriv is a volatile index. Most people would say a $100 is a good start; in my opinion, a $100 account size will not give room for a proper stop loss, therefore poor risk management.
The ideal capital size to trade V75 will be from $500, staring with good capital will help you make better decisions and you will start thinking about long-term trades instead of scalping with $100.
However, if you have a smaller account size, you will not be able to hold trades for too long.
Excellent article its all about market structure
Thanks for dropping in.
Nice article
Thanks so much. Am glad you enjoyed it.