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The Doubling Trend Strategy

There are many different trading systems available for binary options, all of which can be reduced to analyzing candlestick patterns or overlaying special tools on a price chart to help analyze the market and determine the price direction. Often traders try to trade in the direction of the main trend, which, in their opinion, is associated with lower risks. Meanwhile, there are more advanced and comprehensive ways of trading however here you need to be an expert not to buy “a ticket to the Titanic” – a contract at the end of the current movement.

How to set up the Working Area

Fortunately, the Pocket Option broker offers a wide variety of tools for technical analysis. If you are a registered user of the platform, you need to impose graphical lines directly on the indicator, so you can do it in MT5.

For trading with Doubling Trend, you need to choose any volatile asset and set up a timeframe of 1 to 5 minutes, as well as the RSI oscillator. You will find it in the menu Insert/Indicators/Oscillators.

When activated, the tool appears on the working area of your screen. Let us remind you that its signal line performs oscillations, just like the price chart. Moreover, they coincide with each other, but the RSI is slightly ahead, which is the point of this technique.

It is recommended to trace the breakthrough of the trend line on the oscillator. To do so, construct the line by connecting the maximums or minimums of RSI fluctuations (depending on its direction).

You can use the tool “draw the trend line” found in the upper area of MT5, right above the timeframe selection.

How to trade with the Doubling Trend

Congratulations: you are set up and you can start trading. When it’s a good time to buy? You will know that answer if you know best signals the end of the current trend and its reversal? The right answer is a break of the trend line, which in our case is located in the RSI window.

Therefore, the CALL option is bought when the resistance line is broken.

The PUT contract is done with the support line is broken.

The expiration time should not be lower than the time of formation of 4 candles. Otherwise, your trade may close on the retest of the price of the trend line.

In conclusion, we want you to remember some basics. A double top is a bearish reversal trading pattern. It is made up of two peaks above a support level, known as the neckline. The first peak will come immediately after a strong bullish trend, and it will retrace to the neckline. Once it hits this level, the momentum will shift to bullish once again to form the second peak. A double bottom is a bullish reversal trading pattern. It is made up of two lows below a resistance level which – as with the double top pattern – is referred to as the neckline. The first low will come immediately after the bearish trend, but it will stop and move in a bullish retracement to the neckline, which forms the first low.

Perhaps, the Doubling Trend strategy may seem something unusual and out of the ordinary for many traders, however expert traders know that its signals are more accurate than many classical trading systems.

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