Not to waste much of your time below is valuable information on the “top secret on how to trade boom and crash”.
Trading the boom and crash market can be intimidating especially when you are selling boom and buying crash, knowing that one spike in 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.
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.
Table of Contents
BOOM AND CRASH FOR BEGINNERS
With so much information available, boom and crash can be highly confusing for beginners.
This is why I have limited my focus in this post to what you need as a beginner to succeed in trading Boom and crash on Deriv.
As a beginner, the most crucial thing you need to know is how to conduct an accurate market analysis, which includes;
- How to run market analysis
- Multi-timeframe analysis
- Identify market structure formation
- Break of structure
HOW TO TRADE BOOM AND CRASH SPIKES
The best way to trade boom and crash spike is with price action and market structure.
To trade boom and crash spike successfully below is a guide to follow.
- Identify the dominant trend
- Multiple support and support and resistance levels
- market structure breakout
- order block levels
WHAT ARE TICKS IN BOOM AND CRASH
In Boom indices, tick is a bearish move while in crash indices tick is a bullish move.
HOW BOOM AND CRASH WORK?
With these indices, there is typically one price rise (boom) or one price decline (crash) every 1000, 500, or 300 ticks.
IS BOOM AND CRASH PROFITABLE?
Yes, Boom and Crash is very profitable as it is not affected by world events. It is pure technical analysis trading.
WHERE TO TRADE BOOM AND CRASH
At the time of writing this post, Deriv remains the only broker that offers boom and crash Index.
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:
- Understand market structure
- Market analysis from d1 timeframe
- Identify structure on H4 and break of structure
TOP SECRET ON BEST TIME TO TRADE BOOM AND CRASH
The best time to trade boom and crash is when a market structure is broken that aligns with the dominant trend.
On this structure breakout you will see that the market will break through previous support and resistance levels.
See live examples below.
TOP SECRET ON HOW TO TRADE AND DETECT 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.
HOW TO DETECT/ CATCH SPIKES IN BOOM AND CRASH INDEX
Below are areas to look out for to catch spike in boom and crash index
- Supply and demand zones
- Order block zones
- Multiple support and resistance in higher timeframe.
To catch spikes in boom and crash index, map out the above areas on your chart in a higher timeframe so that on retracement, you will look out for entry on a lower timeframe.
BEST BOOM AND CRASH SPIKE STRATEGY
The best boom and crash spike strategy is price action trading because it does not lag like moving average. It is price trading on real time.
Price action trading on Boom and Crash involves buying boom at a low price when it meets all the necessary conditions and selling at the top and it’s the same for crash.
BEST TIME OF THE DAY TO TRADE BOOM AND CRASH
The best time of day to trade Boom and crash is after a break of structure has occurred that is in direction to the dominant trend or break in structure in divergent indicating a reversal market on boom and crash.
BOOM AND CRASH CHART PATTERNS
In my years of trading synthetic indices, I have come to see that Boom and Crash continuously form chart patterns like forex trading, they are consistent with their pattern formations, also one thing that is consistent is the break of market structure.
So instead of only looking out for Boom and crash chart patterns, your focus should also be on how to identify Boom and crash break of structure.
See chart pattern below
HOW TO MASTER BOOM AND CRASH INDEX
I have had conversations with many Boom and crash traders and one thing they always say is they working on a strategy on how to master boom and crash index.
However, at the end of every conversation, it is clear that they are missing the most important discipline to master trading boom and crash indices.
To really master Boom and Crash index, these are what you need.
- Price action and market structure knowledge
- Know how to identify structure formation
- Know top-down analysis
- Know how to spot strong support and resistant levels
- Know when a structure has been broken for entry.
- Patience
PATIENCE ON BOOM AND CRASH TRADING
I am going to focus on patience because I have explained the others mentioned before.
Patience is something every trader must have if they want to be successful.
This is what a trader will be patient with
- High yield setups
- Market structure formation
- Market structure breakout
HOW TO TRADE BOOM 1000
To successfully trade Boom 1000, you need price action application as price action trading is a universal law that the market understands.
Boom 1000 spikes on Bullish moves and ticks on bearish moves; for Boom 1000 price actions works perfectly both on bullish and bearish market.
With price action movement on Boom 1000, you will be able to catch market moves early on potential zones.
See price action movement below on Boom 1000 index.
BOOM 1000 INDEX TRADING STRATEGY
When I started trading Boom 1000 index, I came across a lot of Boom 1000 index trading strategy that were based on indicators, and very few made mention of price action.
To see consistent profits the best Boom 1000 index strategy is the use of price action because it real-time, unlike indicators that paint after price has moved.
In this article, you will find live images (above) that show lots of price action movement, structure formations and breakouts, support and resistance zones, and more. Feel free to look at them.
BOOM AND CRASH MARKET STRUCTURE
Just like forex trading, Boom and Crash indices respect market structure; this means at the formation and break of structure, the market will proceed on a set direction.
Market structure on Boom and Crash can be seen across all the time frames, however, it is much more accurate to look out for these structures from a higher time frame for high-yield setups.
One key point in a break of market structure on Boom and crash is in multiple areas of support and resistance.
See live image below.
BEST TIME TO TRADE BOOM AND CRASH IN NIGERIA
A lot of synthetic traders want to know the best time to trade boom and crash in Nigeria, one thing they forget is, if there was a best time to trade boom and crash indices, then everyone would be making money.
To know the best time to trade boom and crash in Nigeria, you must be willing to learn price action movement, market structure formation, and breakouts.
In this article, you will find many live illustrations of Boom and Crash market structure formation and breakouts.
BEST TIME TO TRADE BOOM AND CRASH IN SOUTH AFRICA
A lot of synthetic traders from South Africa still have the notion that if they can just know the best time to trade Boom and Crash in South Africa, they will always be profitable.
I have said a hundred times already that the best time to trade boom and crash in South Africa is after a break of market structure. It has nothing to do with a certain time of day.
You should go to the top of this article to see more info.
BOOM AND CRASH SUPPORT AND RESISTANCE
Just like any other financial trading instrument, your understanding of support and resistance is also required to effectively profit from the Boom and Crash trading.
The best way to apply support and resistance in Boom and Crash trading is from a higher timeframe. There you will find stronger zones for entry.
A secret of trading support and resistance in Boom and crash is looking out for multiple areas with S&R. these areas will stretch across days. When a breakout happens in that area, it will be an entry signal.
You will see live example images I put up in this article.
BOOM AND CRASH PATTERNS
Boom and Crash patterns are simple structure formation and breakouts. These patterns can be a continuation or a reversal and they are best formed on a higher timeframe.
Whatever Boom and crash patterns that is been formed, it should align with multiple support and resistance levels.
I have put up an image of boom and crash pattern in this article.
CAN I TRADE BOOM AND CRASH WITH $10?
Yes, you can trade Boom and Crash with $10; because Deriv broker allows that, however, it is much better to have enough funds in your synthetic account for trading.
Note that no matter your strategy, it’s important you have just enough funds in your account when trading any financial instrument as it will help make better trading decisions.
BEST MOVING AVERAGE FOR BOOM AND CRASH
There are many moving averages that you can use for boom and crash trading however they can only be maximized with a price action and market structure perspective.
Come to think of it, how many moving average have you tried, and still, you are not profitable as you should. This is because you are missing out on the over market principles which I have always pointed out in my articles (market structure)
Just for the record below are some best moving averages for boom and crash trading that you should use alongside price action and market structure.
- Moving average 21
- Moving average 55
Very good and interested ideas
Thanks so much, Nelson. We are glad you found the information useful!Feel free to drop in anytime.