OTC Forex in PocketOption: trade one click on reversals
- VFX Blog
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.
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.