How to detect spikes on boom and crash indices

How to detect Spikes on Boom and Crash Indices

by
Spread the love

This is not one of those regular articles you may have come across on how to detect Spikes on Boom and Crash Indices. This is a little bit different. For the record, there is no 100% strategy on how to detect Spike on Crash and boom indices, but if you apply the strategy I am going to share below you will make at least 10% of your investment daily.

Learn the Secret of Forex Trading, Click here to download a free e-book now

Please note: Trading forex is not a get rich quick scheme. I have to bring this one up early so that new traders who are often being misled by the so-called YouTube forex millionaires will understand that trading and making good sustainable income from Forex takes time, money and many blown accounts.

Secondly, there is no strategy that is 100% perfect, if you can develop a 89% strategy with good money-risk reward ratio you will make good return on your investment.

How to detect Spikes on Boom and Crash Indices

Early last year, I enrolled for two different courses by self two  acclaimed masters of Spike detectors, I paid $200 for the first class, paid $100 for the second class. Just like most traders, I was very eager and curious to learn new tricks which could make me a millionaire in two months or less.

The first trader informed me that the secret of detecting spike was using RSI number and monitoring the overbought and oversold zone on the RSI. He told me that if the RSI (period 14) number on M1 is close to 99 that I can place a sell trade because it will definitely spiked before getting to 100.

And if the RSI number on M1 was close to 1.00, that I should place a buy trade, that spike will come before the RSI number gets to 0.00. The strategy was 80% successful when I started the practice, but I had to made some adjustment to increase the accuracy to 83%.

The second trader told me to concentrate on Price action and understand the major zone( support and resistance) then place my buy or sell limit on those areas. I practice the strategy for days, putting Buy/Sell limit and Take profit plus a $5 stop loss for each limit. The success rate was amazing, I only lost two trades out of close to 120 trades using that strategy.

The way forward.

  1. Fund your account with at least $100
  2. Set RSI period 14 on your chart
  3. Add 200 EMA to your main chart
  4. Study the market structure (If you don’t understand this one, then you have no business in the market
  5. Note major support and resistance zone on the chart (write them out)
  6. Monitor your RSI number on one minutes timeframe, once it get close to that zone; sell when the RSI number on crash is at 98; buy when the RSI number on one minutes chart is at 1.00
  7. Put Tp and stop loss of at least $3- $5 depending on your equity.
  8. Don’t be greedy, always take profit and adjust your stop lose based on market condition.

Please, apply proper risk management, that is the strategy i have been using and it has been working for me. If you need any tutorial kindly indicate in the comment section.

Disclaimer

Deriv offers complex derivatives, such as options and contracts for difference (“CFDs”). These products may not be suitable for all clients, and trading them puts you at risk. Please make sure that you understand the following risks before trading Deriv products: a) you may lose some or all of the money you invest in the trade, b) if your trade involves currency conversion, exchange rates will affect your profit and loss. You should never trade with borrowed money or with money that you cannot afford to lose.


Spread the love

87 thoughts on “How to detect Spikes on Boom and Crash Indices”

  17. Thank you for this tutorial. I will appreciate if you can sent a video on how to catch spike on boom 500. Thank you

    Reply

    • Please I need more explanation regarding that strategy or even a video tutorial and thank you once again my Allah reward you………

      Reply

  49. Hi, my name is Joseph I need tutorial videos on this , send me tutorial videos and many article as a guide line. Thanks

    Reply

  60. Hello Warren. My name is Matthew and I’m from Poland. I like read you tips about how trades deriv synthetic indicators to get profits. If you be so kindly and send the tutorial to my email i will be so happy from tools to rise my knowledge. Thx bro.
    matepls@tlen.pl

    Reply

  69. My G I understand what you trying to explain but I don’t know how to mark out resistance and support on the m1 time frame on crash and boom and I really need assistance

    Reply

  75. Mr Warrant,
    Pls help me out with your tutorial, I really need to make a differences in my life this 2023.
    Thanks a lot for the help only God will reward

    Reply

Leave a Comment