What is Elliott Wave Theory in Pocket Option? How to Trade Binary Option Using It

What is Elliott Wave Theory in Pocket Option? How to Trade Binary Option Using It

Ralph Elliott was a professional accountant and theorist who lived in the first half of the XX century. He discovered the underlying social principles and developed the analytical tools in the 1930s. He proposed that market prices unfold in specific patterns, which practitioners today call Elliott waves, or simply waves.
How to Trade with Parabolic SAR Strategy in Pocket Option Terminal

How to Trade with Parabolic SAR Strategy in Pocket Option Terminal

The parabolic SAR deserves attention only as a part of comprehensive trading strategy, not as a stand-alone tool. Parabolic SAR helps traders determine the future short-term momentum of a given asset. The Parabolic SAR stands for stop and reverse. If used alone, it can be misleading and can cause rushed decision to enter and exit the market. The parabolic SAR performs best in markets with a steady trend. Use it with other oscillators and indicators for making the informed decisions. One of the popular strategies is the combination of SAR strategy with ADX filtering available in the Pocket Option terminal. Be careful with ranging markets because the parabolic SAR tends to whipsaw back and forth, generating false trading signals. Wilder recommended augmenting the parabolic SAR with use of the average directional index  (ADX) momentum indicator to obtain a more accurate assessment of the strength of the existing trend. Traders may also factor in candlestick patterns or moving averages. For example, price falling below a major moving average can be taken as a separate confirmation of a sell signal given by the parabolic SAR.
How to Use the Reversal Trading Strategy in Pocket Option?

How to Use the Reversal Trading Strategy in Pocket Option?

Reversals are a fact of life in the financial markets. Prices always reverse at some point and will have multiple upside and downside reversals over time. Ignoring reversals may result in taking more risk than anticipated. When a reversal starts, it isn’t clear whether it is a reversal or a pullback. Once it is evident it is a reversal, the price may have already moved a significant distance, resulting in a sizable loss or profit erosion for the trader. The main principle of the Reversal strategy is to buy in the direction of the price. It is ideal for binary options, since transactions can be done on lower timeframes and frequent signals. The strategy is built on three powerful indicators: Bollinger Bands, MACD and SMA. You can find all these tools in the Pocket Option terminal.