OTC Forex in PocketOption: trade one click on reversals
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Scalping on reversals (rollback, correction) is one of the most profitable option strategies. You only need to choose a volatile instrument so that there are many signals. Such as OTC Signals for Pocket Option.
Trading platform
In the vfxAlert application, select the PocketOption broker and connect the account by E-mail/password.
We test the strategy on a demo account using Forex OTC signals. This is a prerequisite before installing a strategy on a real account.
PocketOption quotes: FOREX and OTC
Broker PocketOption offers two types of quotes for Forex currency pairs:
1. Market. Data comes from currency exchanges and major liquidity providers. These are the main market for traders and market makers. Quotes are the same in all trading terminals with a discrepancy of no more than 2-3 points.
2. Over The Counter quotes. Their value is determined only by PocketOption. They differ from the market in the short-term trend, but the general trend remains. vfxAlert gives trend and reversal OTC signals.
All basic technical indicators and strategies work. The average profit on OTC option is higher, so will trade on them. Volatility is quite high most of the time (especially on cross pairs), which is good for scalping
OTC quotes and binary option signals vfxAlert are available on weekends when the regular Forex market is closed.
Trend and reverse OTC signals
As for regular Forex, vfxAlert offers trend and reversal trading signals for OTC. Let's start with the trend ones, see examples:
The trend is determined by two standard technical indicators:
1. Commodity Channel Index. The indicator shows the speed with which the price movement goes or ends (trend dynamics). The market always tends to break through the last local minimum (level -100 on the indicator) or maximum (+100). These levels can be conditionally considered overbought and oversold zones. Signals for Pocket Option will exit the indicator from these zones.
2. The second type of OTC signals based on the classic combination of fast and slow Moving Average crossovers. This signal must be confirmed by oscillators.
Now let's look at the vfxAlert reversal binary options signals, according to which there will be a trading session.
How to use classic indicators on trendlines:
1. Parabolic SAR. Works on the Moving Average, but shows the beginning of a reversal more accurately. The indicator points are below the price and directed upwards - an uptrend. Higher prices and downwards - a downtrend.
2. Relative Strength Index. Basic settings open according to the classics. Down from overbought from level 70 will be a confirmation of downtrend, up from overbought from level 30 will be the beginning of an uptrend. As in other OTC for Pocket Option, we always look for additional confirmation from the strategy.
Signal filters and presets
For more convenient analysis of Signals for Pocket Option and accurate opening of options, vfxAlert offers filters for customizing the signal panel and presets for saving user settings.
The filter can be by expiration time, Power value (the higher it is, the more reliable the signal) and the signal type (trend, reversal, adaptive). You can also choose for which currency pairs signals will be shown.
The settings can be saved as a preset for later use. To do this, after the settings, enter the name of the preset and click "Create". The preset appears on the panel with a signal and is available in one click. You can create any number of presets OTC Signals for Pocket Option.
Trade one click
The main factor of profit on scalping is to open a deal quickly. vfxAlert allows you to open an option in one click. To do this, you need to set the expiration time, the amount of the option on the broker.
Then go to the signal and click "Open position". Please note that the option will be opened for the selected asset even if there is another currency pair on the Pocket Option terminal.
OTC PocketOption strategy data:
Type: Scalping.
Timeframe: M1.
Trading asset: All currency pairs.
Trading time: All FOREX session.
Optimal expiration: 5 min.
#1. Start trading: Vortex + Parabolic SAR
Vortex will be the main oscillator for all OTC signals for Pocket Option. Its lines show the current market trend and its dynamics. The beginning of the flat will be the intertwining of lines as in "Alligator" followed by a horizontal movement.
We will also set the second Parabolic SAR on the chart. It will complement the main Parabolic OTC signal with vfxAlert. Visually, you can better see how far the trend is from a reversal and decide whether to open an option or not. In the figure, open the HIGHER option and an example of the opposite (LOWER) signal.
#2. SuperTrend and trading with market makers
Leave Vortex, remove Parabolic and install SuperTrend. It shows how volatility changes along with the trend. The smaller it is, the faster the reversal will be.
Example of LOWER option: SuperTrend is horizontal, which means that the volatility and dynamics of downtrend are reduced. Vortex and vfxAlert confirm signals for Pocket Option. On the right is an example of a HIGHER option.
#3. Sideways trend + channel indicator
There is a downtrend in a wide range. To trade reversals, we use the Donchian channel indicator for local highs and lows. The middle line will be the trend direction and resistance level.
LOWER option: Vortex does not give a clear signal, but there is a downward movement. Let's not wait for full confirmation and open the option. But, it is better to wait until the conditions on the Vortex are met as in the reverse option (see example).
See more examples in the video:
Let`s summarize.
An OTC signal is quite a profitable trading tool, despite the fact that their value and direction are determined only by PocketOption. All standard technical indicators work with basic settings. FOREX strategies can also be used without modification. You only need to monitor money management if you need to change expiration and choose only strong patterns and vfxAlert signals.