As a trader, you should not make your situation worst because of what you have chosen to believe. There are a lot of traders who believe that indicators don’t work. For them, if you want to excel as a trader, you must know a lot on Smart Money Concept, ICT and other big forex terms. It is good to know those concepts but I want you to know that the ultimate essence of trading is to make money, so in this article, I am going to share the Boom and Crash Drop and Spike Catching Strategy 2023.
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What is Boom and Crash Drop and Spike Catching Strategy?
Few months ago, I developed the Extensive exhaustion point (EEP) strategy. The EEP strategy for Boom and Crash which is still being used by most of my mentees followed the Hooke’s law principles. You see, Crash was designed in a way that when Crash buys up (which is the default mode) it will certainly drop, retrace and continue in the default mode, same thing with Boom, when Boom sells down (which is the default mode) it will certainly spike, retrace and continue in the default mode. If you can know these drop/spikes point, your questions of how to avoid spikes in Boom and Crash will certainly be answered.
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The Boom and Crash drop and spike catching strategy followed the same principles with the EEP strategy, if you are familiar with Hooke’s law which state that “The strain of the material is proportional to the applied stress within the elastic limit of that material” This implies that a time will come when the elastic limit will be exceeded, when this is done, there will be drop in Crash and Spike in Boom. This strategy tends to assist you to spot those spot with ease.
What you need to Know Before Using this strategy
In my introduction, I told you why you should not allowed what you chosen to believe to make your trading journey boring and unprofitable. Knowing those big forex terms is good, they will give you a better understanding of the forex market, but if your understanding cannot translate to profits, then you have not started.
Like I told my Students, it is not about how well you can explain forex patterns, it is how well you can spot them on the chart and make good use of them to enhance your trading. It is good to have a good knowledge of those big forex concept, but don’t hurt yourself by dwelling on them for two long if you don’t understand them yet.
The truth is, if an Indicator or a combination of indicators can make you a better trader, please stick with it, you are not competing with anyone. Great Forex traders (e.g., John Bollinger ) from time to time developed forex indicators to help them in understanding the market and making great forex decision. Remember the goal of forex trading is to make consistent profits.
Having said that, to use the Boom and Crash drop and spike catching strategy, you need to:
- Have a good knowledge of support and resistance
- Have a little understand of forex patterns like flag pattern and divergence
- Risk management
“One thing that will make you a better trader is risk management, if you make a lot of profit and you don’t know how to manage risk, you will blow you account because of greed”
This Boom and Crash drop and spike catching strategy is only used in Boom and Crash Indices, please don’t use it to trade other pairs.
This strategy uses two indicators (RSI 6 and Exponential Moving Average 6) The RSI is used to determined the overbought and oversold zone. While the Moving Average is a representation of the candlestick on indicator window one.
- Know the trend of the market: Understanding the dominants trend direction will determine how long you can stay in the market. For this strategy, 20 to 30 points is enough.
- Use Zoom level 1
- Use M5
(watch the setting and how to use the strategy on the video below:)
Get one pair, find a strategy that works, use indicators if they helps you spot good trade and know how to manage risk. Trading is easy once, you develop a strategy, follow it, modify it and stick with it.
4 thoughts on “Boom and Crash Drop and Spike Catching Strategy 2023”
This video is helpful I ve learnt a lot here but please how can I contact you for some clarifications can you contact me via WhatsApp 07083371305 or drop your WhatsApp line or telegram or any other address thanks
Please how can I contact you, I you to mentor me
How can i contact you for further mentorship