Trading the boom and crash market can be intimidating especially when you are selling boom and buying crash, knowing that one spike on the indices can reduce all your hard-earned profits.
However, to conquer this fear, it is important to understand the basic principles that surround matters that regard trading.
Not to waste much of your time below is valuable information on the “top secret on how to trade boom and crash”.
When you understand this it wouldn’t matter whether it is boom 500, crash 500, or boom 1000, crash 1000, you will just need to apply the same basics of trading boom and crash market structure.
BOOM AND CRASH FOR BEGINNERS
If you are reading my article on boom and crash for beginners then you are in the right place.
Before I talk about the most important thing you should know about boom and crash trading as a beginner, first let me first talk about what you do not need.
Do not spend money buying indicators because all you need is in the MT5/Deriv platform.
Do not let the images of the indicators deceive you into buying.
There are many ways to trade the boom and crash market whether it is long-term, medium-term, or scalping, the pivotal principle that doesn’t change is the understanding of market structure/analysis.
Yes, boom and crash respect market structure so if you are a beginner wanting to trade boom and crash, then go to learn the market structure and understand market analysis.
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BEST INDICATOR FOR BOOM AND CRASH
Many traders make the mistake of thinking that indicators will solve their trading problem not realizing that a good understanding of market structure is what they need.
Before I give you the good news, let me first give you the bad news: there is no such thing as the best indicator for boom and crash; the good news is you can master boom and crash trading when you understand the market structure.
Trust me, if there was the best indicator for boom and crash then everyone would be making money.
Finally, there is nothing wrong with using indicators for boom and crash trading; using indicators for trading will be of more value after you have done your market analysis with market structure.
BOOM AND CRASH STRATEGY
When people search for trading strategies, in this case, boom and crash trading strategy they expect to find the one golden strategy, and when it fails them they go off to the next one and the search for a better strategy never ends.
I know this because I have been there until I accepted to go learn the market structure and analysis then everything became clear. I started to see all my mistakes in the past. Sorry if you are expecting to see a list of indicators.
I am not one of those that showcase a list of indicators for trading, not that I don’t use them sometimes; they are a secondary option to me.
I first do my market analysis when a market structure is formed and completed then the indicators may follow. To create your own boom and crash strategy, you must first understand the market structure.
There is a lot of boom and crash strategy you can consider applying; however, in my experience, you will come to see that no matter the boom and crash trading strategy, they still depend on market structure, which is why I believe that chart pattern trading is one of the most effective boom and crash trading strategies.
These chart patterns are best traded when it supports the dominant trend in boom and crash indices.
Image samples of chart pattern boom and crash trading strategy are provided below:
TOP SECRET ON HOW TO TRADE BOOM AND CRASH.
The top-secret on how to trade boom and crash successfully is as follows:
1 focus on market structure and top-down analysis
2 focus on higher timeframe H1 to D1 to know the dominant trend/reversal time
3 Market entry on a lower time frame after market structure is formed and retested
4 market entry on support and resistance zones
5. Chart patterns on a smaller timeframe for market entry at points of reversal using the Fibonacci tool.
BEST TIME TO TRADE BOOM AND CRASH
This topic comes with mixed reactions and many traders could disagree with me. Think of it, if there was actually the best time to trade boom and crash then everyone would wait for that best time.
The best time to trade boom and crash is not a time of day but of market structure formation. In other words, the best time to trade boom and crash is when a market structure has been formed and completed. Below are screenshots of the best time to trade boom and crash with market structure formations.
HOW TO DETECT SPIKE IN BOOM AND CRASH INDEX
If I could go for a superpower it wouldn’t be hulk, Thor, or spider-man. It would simply be detecting spikes on boom and crash. Now many people will hate me for this, I see websites and people trying to sell boom and crash spike indicators and many people fall for it.
Ask yourself this question, if they are making so much profit with it. Why are they are trying so hard to sell it? Every tool and indicator you need for you to be profitable with the trading boom and crash within the MT5 platform.
You only need to be patient and learn the market structure and forget about those shortcuts of spike detector indicators. To answer your question the best way to detect spikes in boom and crash is with market structure/analysis.
BOOM AND CRASH SPIKE DETECTOR
There are many booms and crash spike detectors out there that will promise you heaven on earth. From my experience, they have not lived up to their expectations. While spending money on boom and crash spike detectors when you can master the act of detecting spikes yourself.