The financial market is always expanding, providing traders with a variety of alternatives and trading instruments from which to choose. With so many trading opportunities, a trader (especially a beginner) may become overwhelmed as to which to choose.
Based on the constant expansion of the financial industry, indices such as boom and crash emerged. (From Deriv broker) Trading boom and crash is a technique similar to mastering trading currencies.
If you find yourself on this post, then you are sure that by the end you would know the ABCs of trading boom and crash.
BEST TIME TO TRADE BOOM AND CRASH
As a boom and crash trader, one thing you should get rid of is the idea that there is the best time to trade boom and crash, if there was, every trader would just hang on till that specific best time.
If you want to be successful in trading boom and crash, you have to start thinking long term, this way you will find good setups that will last for a very long time.
The best time to trade boom and crash is to identify a good setup at a higher time while paying attention to the concepts of trading (market structure).
The thing is you cannot talk about technical analysis trading without mentioning market structure.
These structures appear every time in our boom and crash chart, but because traders lack this market structure knowledge they fail to identify them when they appear.
If you really want a one-time solution to trading boom and crash successfully, then it is time to let go of those lagging indicators and focus on naked chart trading.
Now that you know that the best time to trade boom and crash has nothing to do with a clock time of day but with market structure. What will you do?
To emphasize my idea, please see the photograph below of market setups for boom and crash trading.
TRADING BOOM AND CRASH
Boom and crash is an exclusively synthetic trading instrument of Deriv broker that can be traded 24/7.
Boom and crash are backed by a cryptographically secure random number generator and are unaffected by global events, regular market hours, and market and liquidity risk.
Boom and crash indices move on an average of one drop (crash) or one spike (boom) in prices that occur in a series of 1000, 500, or 300 ticks.
READ ALSO: CRASH 500 INDEX
READ ALSO: CRASH 1000 INDEX BROKER
BEST TIME TO TRADE BOOM AND CRASH IN NIGERIA?
There is a common mistake boom and crash traders make, that mistake is thinking that if you can figure out the best time to trade boom and crash then you would be successful, however, this is not the case.
If you leave in Nigeria the truth is there is no best time to trade boom and crash in Nigeria, the only thing that is certain is a good market setup after proper market analysis.
For the sake of this post, I want to let you know that the best time to trade boom and crash in Nigeria is tied to your understanding of market structure.
Below is a clean Boom 1000 bullish setup for you to understand more.
BOOM AND CRASH FOR BEGINNERS
Boom and crash indices are designed for spikes and drops respectively. It movement (spike/drop) in prices occurs in a series of 1000, 500, or 300 ticks.
As a trader, these ticks cannot be accurately monitored manually, but one thing is certain: it adheres to market concepts such as supply and demand, support and resistance, and so on, particularly on higher timeframes.
Unlike currency, boom and crash can be traded exclusively on derivatives 24 hours a day, seven days a week.
Demo trading for boom and crash indices is available to help beginners learn how it works.
BOOM AND CRASH TRADING STRATEGY
I’ve read and heard a thousand times that every trader should have a trading strategy; this is correct, but it’s not the only thing there is to trading.
A trading technique is pointless unless you understand the fundamentals of trading. It’s like racing to the finish line only to discover that you were in the incorrect lane the whole time.
Understanding market structure is essential for developing the best boom and crash trading strategy.
Irrespective of how your strategy is, if you do not possess this basic market structure knowledge, you will not see continuous growth in your trading.
To create a good boom and crash trading strategy you can read my previous post on top secret on how to trade boom and crash.
Above you will find a detailed image explaining boom and crash trading strategy.
BOOM AND CRASH SIGNALS APPS
I have a few things to say about this because I am not a fan of boom and crash signal apps. So far, so good; I have not seen anyone keep their promises. However, the only boom and crash signal app I’m aware of is your head.
My dear boom and crash trader, it is time to stop looking outside and start looking within. Invest in learning the basics of boom and crash trading, beginning with market structure, and then read the free article on this website on how to trade boom and crash.
BOOM AND CRASH ON MT4
The boom and crash indexes are not available on MT4. It only works with MT5 Deriv brokers.
If you want to trade boom and crash, you must first register on Deriv to gain access to the indexes.
BOOM AND CRASH CHART PATTERNS
To begin with, boom and crash patterns can be seen much better on a higher timeframe; these patterns are formed on a regular basis, just like in forex trading.
However, the chart patterns formed in boom and crash are much more reliable than forex because there is no fear of fundamental news, which can lead to a failed chart pattern, as we experience in forex trading.
This would be incomplete without some instances of boom and crash chart patterns, so here are a few below.
HOW DO YOU TRADE BOOM AND CRASH WITH PRICE ACTION?
To trade boom and crash with price action, a trader should focus on major support and resistance zones.
These zones are areas of multiple price rejection in higher timeframes.
DOES STOP LOSS WORK ON BOOM AND CRASH?
Yes, and NO; if you are bullish on boom and bearish on crash your stop loss will work perfectly but if you are bullish on crash and bearish on boom, the spikes and drops tend to break pass your stop out level before it eventually closes.
HOW DO YOU TRADE CRASH AND BOOM SUCCESSFULLY?
To trade boom and crash successfully, you must pay attention to market structure.