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HOW TO TRADE BOOM1000/500 AND CRASH 1000/500 SUCCESSFULLY

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Risk Disclaimer for Forex Trading

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high
degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level
of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that
you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you
have any doubts.
HELLO TRADERS
This document is going to be guiding you on how to trade Boom 500 and Crash 500. I am
going to make it as simple as possible for many of you to easily follow. The main purpose of
it is to enhance your trading experience and also help you make numerous withdrawals
rather than deposits.

WHAT IS BOOM 1000/500 INDEX


It is a trading asset that can be classified under synthetic indexes. A novice trader can easily
predict its movement as it has numerous small bearish candles and an occasional long
bullish spike. Given the right tools and enough knowledge any trader can make consistence
winning trades/profits. When trading boom one can buy or sell boom 500 but most of the
time when you open Boom100/ 500 index it is always selling hence the right way is to trade
the small bearish candles. However selling boom can be stressful as you can be hit by an
unforgiving spike. One must not worry about the long spikes as I am going to fully explain on
methods that can enable us get profits from both trading spikes and trading small selling
bearish candlesticks. Anyone can be asking what Crash 500 is, well it is just the opposite of
what has been said above. Crash 500 index has numerous bullish candlesticks and an
occasional bearish candlestick which normally engulf six plus small bullish candlesticks.

UNDERSTANDING BOOM 1000/500 AND CRASH1000/ 500 CHARTS.


I have to be clear with everyone here that when anyone wants to start trading he or she
must first of all understand charts formations, identifying direction of the trend and be able
to spot zones of resistance and support all this can be made possible by indicators which are
already installed in both MT4 and MT5. I urge you all not to be confused as I am going to go
through every aspect with you such that you can understand fully. Basically the different
moving averages will show you the direction of the trend and one must understand that
these Moving Averages also works as support and resistance zones. Following are set of
indicators that will be used to trade either boom or crash and they can be also used when
buying crash or selling crash as well as selling boom or buying boom.

Fig 1 Fig 2

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Fig 3 Fig 4

The information displayed in the above pictures is essential when you setup your indicators.
Basically what is needed are the 3 Moving averages and Relative strength index to start the
ball rolling. Fig 1 shows how you set up your EMA 200 (Exponential Moving Average), the
colour of the moving average you can put the colour of your choice. In Fig 2 it shows you
how you set up your EMA 50 but on this one you apply at median price please do refer to
the above picture. Moving on in fig 3, this is the Exponential Moving Average 9 you apply it
to close and you have to choose the colour of your choice. Lastly on setting up indicators we
have the relative strength index, use period 3 apply to close you have to put 3 levels. These
levels are as follows, level 10 is strong buy, level 50 is take profit or wait and lastly is level 90
which is strong sell and again you have to put the colours that you like. It will be much easier
if you use the same colours as mine such that it will be less confusing when you are
following my charts and examples later.

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Finally when you finish up setting the indicators your chart should come up as follows

You should not be confused I only rotated my screen, having set up the indicators all you
charts should appear as one above.

IDENTIFYING AREAS OF SUPPORT AND RESISTANCE


This is one of the most important aspect in this book hence one has to pay great attention
to details because that is where all the magic begins. First we have to define what we really
mean by support and resistance in forex trading context. Support zone is a price level where
a downtrend can be expected to pause due to concentration on demand. At times the price
level can reverse or it can be broken meaning that there will be continuation in downward
movement. Many traders take advantage of these zones to spot accurate entries. The same
can be said when it comes to resistance zones these are normally price ceilings, the price
level will be actually beneath it. When identifying the either resistance or support zones one
should not draw lines that pleases his or her eyes but rather draw lines that can be seen by
any person it must not be hard to see or identify.
We should know that when drawing support and resistance zones one should use bigger
time frames i.e. 15m, 30m, 1hr and 4hr time frames then you use 1m time frame to take
positions. I am going to insert pictures of examples of what I am talking about.
One should understand that resistance lines can act as support lines later if the price level
breaks the resistance and later returns. Firstly let’s look at BLUE ARROW where it is
pointing, (9060.617) the price level broke it at first then when it returned it was now a
resistant zone and again it was broken again but this time when the price level returned it
bounced back upwards( makes it support zones). It retested the same level for about 4
times before it was broken again for the market to continue downwards. Where the
YELLOW ARROW is pointing is another support/resistance zones (8864.358) at first it acted
as a support level which was later broken and it turned to resistance. The black arrow is
pointing at (8709.672) it was a support which was broken into then turned to resistance.
This has to be understood very well because it is the foundation of the strategy.

As it can be seen in the above picture we can take positions from the information provided
by the use of support and resistance. Also take note of the Moving averages both EMA 200
and EMA 50. EMA 200 is giving us confirmation of the trend meaning that when taking sell
positions they must be taken when price level hits our resistance zones. Take note that
when market reverses you should wait until the reversal candle completes this is to ensure
that surely the trend is in the reverse mode. With the information presented above there
are several entry points that can be held.
Now let us look at another example, in the above picture we can see that two lines were
drawn and the candlesticks were moving in a channel, each time when the price level
reached support line it reversed upwards( left blue arrow). The line was acting as support
zones and it is seen later that support line was broken. As seen above it represents buying
opportunities (when price level touches support). If we look at the two arrows to our right
they shows a resistance line, market is reversing at that level and several retests has been
noticed hence they means entry points (perfect selling opportunities). Ladies and
gentlemen this information needs to be digested well, one should take more time grasping
these concept such that consistence profits can be made.
Moving on, in the above picture we can see the indicators we setup that they are now at
work. EMA 200(red moving average) has been telling us the direction of the trend. The chart
above is Boom 500 index chart and it is clearly selling all the way. The next question will be
how can we spot entries positions??? If you have been following you now know when to
enter. Those three arrows shows us the perfect time to execute trades. Since it is a down
trend we sell, if you get your entries right it therefore means that there will be no fear for
spikes as the market is on the downtrend.
The next thing that you should do is to set up your take profit; you should not be greedy as
the market can be disastrous if you try to take everything. You should know that boom and
crash do not respect stop loss, spikes are superfast that it can be hardly detected by our
normal computers maybe super computers can do the job therefore we should be cautious.
After we draw all necessary support and resistance we can go across all time frames and it
should be noticeable. This strategy applies to both Boom 500 and Crash 500 even other
trading assets, when you master the basics you have better knowledge about forex trading
as a whole. Furthermore after identifying support and resistance you can then come to the
1m time frame to see if you were accurate enough on identifying these zones. Below is the
example and I have used the same support lines/levels that I have already identified before.
From the above information we can notice that from the support line 9060.617 respected
the setup. It is clear that when price level hit that support zone it reversed not once but
more than two times check out the areas where I put blue circles. Boom and Crash 500
respects support and resistance. We can all ask when the RSI index starts to work, well here
is the example when you start to look at your RSI indicator

Firstly let us look at the purple arrow where it is pointing, it is actually pointing at strong buy
region and please note that at times it might go beyond strong buy region. With boom 500
index when you are trading spikes that’s the area that you will be focusing on the most,
then with crash 500 it will be the opposite will further look into it. Now look at the orange
arrow, it is pointing at the support line 9060.617 meaning that the market will reverse. You
need at least two confirmations for you to enter a position, when the price level was rushing
towards the support and when the RSI was also in the strong buy region one could take the
trade knowing a spike will come. The above chart is in 15min timeframe meaning one candle
is 15mins long.
Red arrow is showing us that the market entered strong buy and it stayed for a bit longer
and eventually it spiked upwards. We should take into consideration that whenever we
draw support and resistance lines accurately there is high probability that you will be in
profit. Use of right lot sizes is key, it will make you stay in the game for long and it also
makes it possible for you to withstand the small bearish candlesticks (Boom 500).
We now have to check out Crash 500 index, because we have been using Boom 500 as
reference now it is high time that we use Crash 500 index chart so that you can see it is
really easy to follow. Crash 500 index has small bullish candles and occasional bearish
candles. When trading this asset you have to adhere to support and resistance zones for
you to catch crashing spikes as they happen. I am going to insert more examples on crash
500 index for easy referencing.

From the above picture I have drawn a resistant line (10541.734) which is easy to see from a
distance such that anyone can notice the activity going on. The price level 10398.465 (blue
in colour) we also notice that it has been tested three times meaning one can draw a
support line at that zone. Furthermore the two orange arrows are showing where the
market reversed hence one can open sell positions when price action touches resistance line
(10541.734). Since it is a 15min timeframe when you catch those spikes it therefore means
you will be in good profits. Please bear in mind that we use bigger timeframes to draw
support and resistance and it can be 15min / 30min / 1hr and 4hr
When we check at our moving averages we see that the moving average that shows us the
trend’s direction is going sideways (check the formation of candlesticks inside the rectangle)
it therefore means that the market is consolidating. The only way to spot entries is to use
resistance and support areas. But again you should exercise great deal of patience so that
you can spot good set ups which will put a smile on your faces.

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The above picture shows us a different case from what we were talking about, firstly we
look at the red arrow. It is pointing at the EMA200 and that alone can tell us the direction of
the trend (downtrend). At the beginning of this document I mentioned that the moving
averages can be represent strong resistance/support level, take closer look in the green
rectangle it is evident that the price level reached the EMA200 several times before it broke
through (each time when it touched the ema200 we were presented with clear sell entries).
Finally when the market broke the ema200 it went up until it reached the resistance level
10541.734 (blue arrow) and it reversed again (more downward spikes). This is how you
catch spikes guys, there is no HOLY GRAIL in trading Boom and Crash 500 that gives you
signals at your disposal. One should know that you have to employ the ideas that I have
been talking about to enhance your trading and increasing your success rate.

THE TWO MINUTE STRATEGY


This is the easiest strategy that can be followed by anyone. When you trading Boom 500
/1000 one should be selling and if it is Crash 500/1000 you will be buying. The ultimate goal
is to try to avoid painful spikes at all cost. As any strategy it also has its drawbacks but I can
guarantee that when on adhere to the principles of this strategy you can make consistence
profits and enables one to withdraw profits frequently.

Rules of the 2min strategy

 EMA 200 should be confirming the direction of the trend use bigger time frames
such as 30min, 1hr and 4hr.
 When it is Boom 500 Index RSI should be above take profit zone (strong sell region).
When you are dealing with crash 500 it will be the opposite
 You enter the trade for 2mins only after a spike meaning that you take two candles
and close your trade.
 Avoid opening multiple positions
 Use right lot sizes for example if you open $0.10 lot size after 2mins you would have
made 20 cents. But when you have huge capital when you open $50 lot size in 2mins
you make +$150
 Identify resistance and support zones.
 Use proper money management
 Do not force trades rather trade right setups

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The chart above is Boom 500 index in 1hr time frame, the two arrows shows EMA 200 which
is confirming the direction of the trend. The blue arrows are pointing at resistance and
support levels. When these zones are well identified they can be used for several days as
boom /crash 500 markets goes up and down.

After we are done with the trend’s direction we then go to 1min time to enter the positions.
Let’s refer to the picture below:

When we have a spike we then jump in the trade and sell two candles then exit. Let us look
in the red rectangle there have been 5 spikes which means that 5 entries. We also look at
the EMA 200 in the 1min time frame when it is above the candlesticks we can easily sell
without fearing spikes. Black rectangle also represents entry positions but at the same time
can you see that if you try to prolong time in the trade you might have hit those long spikes.

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As I said earlier when you sell boom 500 make sure RSI is above take profit zone check the
blue rectangle and the green rectangle. Moreover when you look at the yellow rectangle it
is evident that most spikes happened when the RSI indicator hit the strong buy area.

I encourage those starting Boom and Crash 500 to use demo accounts and perfect this
3strategy. As you practice it you get to understand the market better and it means that you
can even hold trades for longer.

HOW TO CATCH SPIKES IN BOOM 500 AND CRASH 500


When you trade spikes you have no fear of losing one big chunk of your trading capital at
once. If you are right in trading spikes it will be quite hard to blow your account. This is
accompanied by other factors such as good money management and good calculation on
your risk reward ratio. Like any strategy it has its own rules that must be strictly followed.
Benefits of trading spikes is that you can set stop loss and trailing stop loss.

Rules of trading Spikes

 A great deal of patience as spike takes time to occur


 Only trade uptrend (boom500) and trade a downtrend (crash 500)
 EMA 200 should be above candlesticks in Crash 500 and EMA200 should be below
candlesticks when trading Boom 500.
 Use bigger timeframes to draw support and resistance
 Use at least two confirmations to enter a trade.
We take a chart and analyse it very well, when it comes to trading spikes we have to be
accurate as possible. Firstly we draw support and resistance zones and we should pay
attention on moving averages as they offer entries. RSI indicator also plays a greater role as
it gives confirmations on entries.
Let me explain before we go into more details and examples. When trading Boom, the rsi
indicator should be at the strong buy region (price floor), for Crash 500 the rsi indicator
should be at the strong sell zone (price ceiling). When we catch a spike we wait for market to
hit the ema9 if it breaks it with more than 3 small candles we exit the trades, this applies to
both crash and boom. Normally for us to hold on the trade we look for spikes that engulf
more than 10 small candles at once, then we hold until it hits the ema9 if it do not spike
more we cash out.
One has to draw support and resistance lines in bigger timeframes, having done that 1min
timeframe can then be used to observe and take trades. Another thing that must be noted
is that use recent areas of resistance and support to be more accurate on your trades.

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Check out the picture above, it looks familiar right? I already drawn lines that represents
support and resistance for Boom 500 index. Important factors that can be noted there are
zones of resistance and support has been identified in bigger time frames. Moving on we
also see that the EMA 200 is above the candlesticks meaning that it is a downtrend (Boom
500), it won’t be ideal to trade we should then wait for the market to present us with an
opportunity to trade. Let us look at another example that you guys should look for when
you wish to trade spikes

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Fellow traders check out the picture above it shows the right setups needed for one to trade
spikes in Boom 500. In the black square we see that it is when the market changed direction
and the EMA 200 is below the candlesticks which strongly shows an uptrend. Let us look at
the arrow in the square and then check the RSI indicator it is at the strong buy region, this
the complete set up needed to catch on spikes. Now when we look at the resistance and support,
they were changing from being resistance to support at some point. When the market was moving
towards the support that was another buy entry forming, then the confirmation needed to take the
trade was the RSI indicator. Again EMA 200 acted (look in the circle) as a firm support and that was a
buy entry one could take advantage of. There is nothing more to it guys this is all that is needed to
trade spikes, if you trade two 30mins candlesticks you weekly profit target would have been hit.
Since we strictly adhere to the rules of this strategy we are good and that what’s needed.

Since we looked at Boom 500, let us now dwell on Crash 500 and put across all necessary
information to sell crash 500. If you have been paying attention on Boom then one should not find it
difficult to understand as it is just the opposite of what we have been talking about. We use the
support and resistance and moving averages to spot entries. As usual we look in the bigger
timeframes for zones of resistance and support. Let us look at the examples below

The chart above is 30mins timeframe I only drew one support /resistance line which
enabled to take trades. Compliance with the rules were met, EM200 must be above the
candlesticks to ensure a downtrend. In the green rectangle we can see that the market was
respecting both support and resistance (moving average 200). Since it is was a downtrend,
when the market reached the EMA 200 was a clear sell and by executing that trade one was
guaranteed many spikes.
As the trend continuing downwards let us look at the red arrows , there are series of spikes
at zones of resistance. First is the red arrow at your left, then market reversed a little and
when it got to the resistance and spiked down again. There is nothing more guys treat crash

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500 as any other asset and keep on practicing in the demo accounts until you all
understand.

I have reiterated that once you draw your support / resistance correctly you can use the
same zones for quite a while. Let us refer to the following picture below

About 2 weeks later we revisited the chart and check the same resistance we identified has
been respected several times. Look in the purple rectangle and look at the red resistance
line (10541.734). Market has been reversing at that point and for trading spikes it would be
again perfect spot on entries. The blue double arrow shows us that in indicator 1 window
RSI indicator confirmed that indeed a spike was coming since it was in the oversold region
hence a spike was imminent. Basically that’s what we look at when trading spikes.
Finally let us look at the last example on crash 500 which will be the 1min timeframe

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Never make miscalculated move by trying to execute trades when all conditions are not met
as you can lose your hard earned cash. Now if we go back to the picture above you see how
important it is to identify resistance as most spikes originates from resistance areas when
you are trading Crash 500 or even Crash 1000

In conclusion this strategy needs to be revisited over and over again until you understand
how the charts move. I urge novice traders to practice more in demo accounts or to trade
with small capital such that you can learn on handling emotions.
Boom and crash 500 respects resistance and support and these assets must be traded
carefully. All the listed rules that I talked about must be strictly adhered to. When trading
boom and crash you must use right lot sizes that will not lead to loss of capital in short
period of time.

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FOREX TRADING PSYCHOLOGY – MANAGE YOUR EMOTIONS WHILE TRADING
Forex Trading Psychology: Having expertise in market analysis or having extensive
knowledge about Forex is not the only factor that determines that you will be making
consistence profits in trading. You may know many perfect 2min strategy and other
successful strategies out there as well as using all the indicators out there, but if you don’t
learn something that is very important then you will have a hard time making money in
trading. Hence it is the skill needed to be successful of managing your own emotions.
HOW TO HANDLE EMOTIONS WHEN TRADING.

Experienced traders are quite good and they do handle their emotions well. They exactly
knows when to trade the market and when it’s better not to trade. The below are the ways
how we all can handle emotions when trading.

1) Don’t trade out of greed


This helps to avoid many things that will cause a stressful emotional response. And if you
are really in fear or not in the mood to trade, simply avoid placing trades. It is better than
placing a trade and losing money.

2) Be aware of the uncertainty in Forex Trading


Experienced traders are aware of the uncertainty in the Forex market which is not the same
as lack of confidence. It is just a fact in Forex, No matter how good your trading decision is,
the market can unexpectedly go against your predictions at any time. If you clearly
understand this while placing a trade, you won’t get a shock when the trade results in a loss.
All you need to do is to be fully prepared to face the loss. There is a saying: Hope for the
best but prepare for the worst. You have to be mentally prepared to accept the loss you
face. This will certainly reduce the impact of negative emotions. The Awareness of
uncertainty is another crucial thing to understand when it comes to Forex trading
psychology.

3) They never expect quick profit


This is also related to greed. What do novice Forex traders do when they want to make
some quick money? They just place trades with huge trading volume and lot sizes. But when
you choose a huge lot size, you are also risking a huge amount of money. While Forex
traders who do this only consider one possibility and blinded by thinking how much they can
earn if the trade goes well, they completely forget or ignore another possibility: If the trade
doesn’t go as expected, they will lose a huge amount of money. Also, in a few more trades
they end up losing their entire capital. We all should stay away from this type of trading and
always follow a good risk management.

To sum up, understanding three important things about Forex trading psychology can make
a big difference: Taking breaks when you are too emotional, always being aware of the
uncertainty in the Forex market and practicing wise risk management. Prevention is better
than cure

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Avoid all possible ways that emotions can ruin your performance. Have a very good trading
plan. Trading with good planning reduces risk and also prevents any emotions to affect your
performance. You need to develop your own personalized trading plan and develop a solid
trading discipline.

Once you have got three consecutive profit trades or losing trades, it is better to take a
break. If you get three consecutive profit trades, your fourth trade may be entirely
motivated by overconfidence. If you get three consecutive losses, your fourth trade will be
driven by an extreme need to earn back the money you have lost.
Money Management Tips

Invest funds that you can afford to lose: please do not take stupid risks by investing money
that you need for daily basics. This is because it’s possible to lose all your trading capital,
and secondly, because trading with funds you live on will add extra pressure and emotional
stress to your trading, compromising your decision making abilities and increasing the
chances of making mistakes.
Keep your risk consistent: Most novice traders usually increase their positions sizes as soon
as they make profits, which is one of the best ways to get your account wiped out. Keep
your risk consistent!
Do not become over-confident and less risk-averse Just because few winning trades doesn’t
mean that the next one is going to be profitable as past results do not guarantee future
results. When you worked on your trading plan, you had to set up rules to decide about an
effective size for your positions. This is just one step in establishing a successful trading
method, now you need to stick to and follow your investment plan.
Bottom line: These tips are just the cornerstone to better manage your risk – as you
research further, you’ll find other Forex trading tools and techniques for beginners or
professional traders that you can use to improve your trading career. Before using a live
trading account, try to back-test your trading plan on a demo account until you fully
understand how my two strategies works.

I WANT TO WISH EVERYONE THE BEST IN THEIR TRADING BUSINESS AND PLEASE PRACTICE
PRACTICE AND PRACTICE UNTIL YOU GET THE CONCEPTS IN YOUR FINGERTIPS. GOD BLESS

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