Saturday , 21 October 2017
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Momentum Catcher

Momentum Catcher

 

This trading concept is specifically designed for newbies and traders that don’t have the time to observe the market.

The strategy is based on 5-minute chart, however for options with longer lifespan (Up to 1 hour) 15-minute chart can be employed. The concept behind this strategy is quite simple and requires only two indicators. Once you have the indicators installed, you simple need to wait for the perfect moment when all conditions are met and execute the option in the right direction.

Strategy Setup:

Indicators: Bollinger Bands (20, 0, 2), Stochastic Oscillator (5, 3, 3).

 

BB

SO2

Chart Time Frame: 5 minute chart for 10-15 minute option, 15 minute chart for 30-45 minute option.

Down/Put Signal

  • The candle must cross the Upper Bollinger band.
  • The Stochastic oscillator must trade above 80 (overbought).
  • Wait for confirmation – bearish candle after the bullish one.

Up signal

Execute Down/Put option that will expire after 10-15 minutes.

Up/Call Signal

  • The candle must cross the Lower Bollinger band.
  • The Stochastic oscillator must trade below 20 (oversold).
  • Wait for confirmation – bullish candle after the bearish one.

Down signal

Execute Up/Call option that will expire after 10-15 minutes.

 

The same strategy can be executed on 15 minute chart, however the option must be with longer lifespan (up to 1 hour).

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