Boom 1000 Index Trading Strategy

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BOOM 1000 INDEX TRADING STRATEGY
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1000-index-trading-strategy/) strategy/&description=Boom%201000%20Index%20T
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Smart Ways To Reduce Taxes
Boom 1000 is one of the four unique synthetic indices offered by In the UK Tax System (UK Tax)
Deriv (https://deriv.com/). Boom 1000 along with Boom 500, /smart-ways-to-reduce-taxes-in-
the-uk-tax-system-uk-tax/)
Where Does Your Money Go In
Crash 1000, and Crash 500 are unique indices due to the spikes, A Mining Financing?
which is the sudden boom and crash in its price. In this article, /where-does-your-money-go-in-a-
mining-financing/)
I will focus on how you can trade the Boom 1000 successfully. What Is Capital Management?
/what-is-capital-management/)
Boom 1000 is well known for its volatility and is a great way to
SH A RE THE
grow your trading account. The high volatility also means that
B LO G
you can incur big losses if you don’t follow the rules and play it
rough. That is why you need to understand a few things before ext=Boo .com/s m/shar
%2Feco onomic conomi m+500
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you start trading the Boom 1000. m/subm
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Table of Contents
How To Trade Boom 1000?

1. Apply Moving Averages
2. Draw Your Support & Resistance Levels
3. Catch The Boom 1000 Spikes
1. Support Level
2. Demand Zone
3. TrendLine Support
4. Moving Averages
5. RSI Rejection
Boom 1000 Spike Catching Strategy
What If It Stops Working?
As a starter, here is what you need to know about Boom 1000.

  (https://pinterest.com/pin/create/bookm
Boom 1000 and Crash 500 are highly volatile pairs as compared
to Boom 500 and Crash 1000.
u=https://economicgrapevine.com/boom-
The Boom 1000 can easily cross 500 pips movement in a single trading-
1000-index-trading-strategy/)
day. No kidding! strategy/&description=Boom%201000%20Index%20T
It’s a 100% technical pair which means it follows and respects
the rules of technical analysis (chart analysis) and price
action.
The Spikes of Boom 1000 are the largest among other pairs and
the sudden boom could easily be 20-60 pips.
So, how do you trade the Boom 1000 index? What are
techniques that work and what to avoid while trading the Boom
1000? This article explains it all.
How To Trade Boom 1000?

First, let me show you a snapshot of my trading history and
explain why I like to trade the Boom 1000. (Excuse my trading
setup for now. I will explain it at the end of this article.)
As you can see, Boom 1000 seems to be my favorite pair and

there’s no reason I shouldn’t like it. It perfectly follows technical
analysis and other price action strategies but I specifically
prefer it due to its long & lucrative spikes.
Most traders trade the Boom 1000 to catch a spike or a series of

spikes. These spikes can give you maximum return in no time
if you implement the following rules and trade with discipline.
Here is how you can trade the Boom 1000 index.
1. Apply Moving Averages

Whenever you need
life advice, you consult with a friend or a
 (https://pinterest.com/pin/create/bookm
person you can trust. In the same way, before you start trading,
you should apply moving averages to the pair. I have applied &
checked a lot of moving averages throughout my trading
trading-
1000-index-trading-strategy/)
journey strategy/&description=Boom%201000%20Index%20T
and have identified the ones with accurate results.
For Boom 1000, I recommend THREE smoothed moving
averages with lengths 21, 50, and 200 respectively. Make the 21
moving average blue, the 50 green, and apply red color to 200.
Here is the step-by-step process of adding these indicators to
the Boom 1000.
Step1: Go to Binary
(https://tradingview.binary.com/v1.3.13/binary.html) and open
the Boom 1000 chart. Add Smoothed Moving Average indicator
by clicking indicators and select Smoothed Moving Average
indicator.
Step2: Click on the setting icon and set the length to 21. The
source should be close by default and you would leave it as it is.
Go to style and color it blue.
Step3: In the same way, add another smoothed moving average.

Set the length to 50, and color it green. Repeat and make the
third one red with length 200. Congratulations! you have
successfully added the required moving averages.
2. Draw Your Support & Resistance
Levels
This one is extremely important and you shouldn’t leave any
stone unturned while drawing levels in the market. Open the
Boom 1000 chart and select Horizontal Line.
Next, you need to draw support & resistance levels. Don’t

overthink about the levels and draw the reliable ones only. For
the level to be considered reliable, it must reject the price at
least twice or thrice. Here is how you can draw the support &
resistance levels of Boom 1000.
As you can see, I have only drawn the clearer and obvious ones.
These levels are good entry points and will increase your
success probability. Tip: Don’t make a mess of your chart and
keep it neat and accurate.
If you are
uncomfortable
with drawing
support &
resistance levels,
you can use the
Ichimoku Cloud
indicator that does
the job for you.
In addition, you should identify patterns like double bottoms,

double tops, ascending & descending wedges, head-and-
shoulders, triangles, etc to have an in-depth understanding of
the market.
3. Catch The Boom 1000 Spikes

To catch a spike or a series of spikes, you need to understand
the mechanism behind a spike. Why does a spike arise in the
Boom 1000? Well, as you already know the Boom 1000 moves in
the downward direction with each M1 candle and gets rejected
at some point which results in a spike.
The spike arises due to one or more than one of the following
reasons.
1. The price has touched a support level.
(https://www.facebook.com/sharer.php?
2. The price has arrived at a demand zone. media=&url=https://economicgrapevine.com/bo
3. The price might be at a trendline support.
4. The price is about to get rejected by a moving average.
5. Relative Strength Index (RSI) Rejection
Let’s explain each of the above reasons and incorporate them in

trading the Boom 1000 index.
1. Support Level
Once you draw your support & resistance levels, you should
wait patiently for the market to test at your level. It’s
noteworthy to mention here that a lot of traders incur huge
losses thinking they would miss on a spike.
Yes, you will miss a lot of spikes and that will make you regret
reading my article. In my defense, it will develop patience in
you, that is one of the key personality traits a trader should
have. As a result, keeping you in line with institutional traders
and outplay most of the retail traders.
Below is the chart of Boom 1000 that clearly shows how the
price gets rejected most of the time at support levels. That
being said, you can set your buy limit at the exact support level
with a tight stop-loss. While putting a stop-loss, you should
consider:
Risk/Reward Ratio: Don’t risk $100 on a single position if you

aim for $50 profit. If an average spike gives you 100$, you
shouldn’t risk more than $50. In other words, follow a
minimum of 1:2 Risk/Reward Ratio.
Price Action: When the Boom 1000 is on uptrend, it will
probably follow & respect every support out there but in
downtrend, it just
doesn’t get tired breaking them. Make sure
you perform some price action analysis to make sure the trade
is worth taking. Preferrably, in downtrend, you should rely on
strong support levels only such as daily, weekly, monthly or
trendline supports.
Consistent Rejection: If the price gets rejected from a support
level more than twice, chances are that it’s getting ready for
some lucrative spikes. When the Boom 1000 is down, don’t try
for long trade unless you find an evidence. The evidence could
be a double-bottom, difficulty in breaking a support etc…
2. Demand Zone
Demand Zone (https://www.dailyfx.com/education/support-

and-resistance/supply-and-demand-trading.html) is the price
level where traders and investors on the sidelines are willing to
step in and buy when prices get that low. A demand zone
basically acts as a support level. For example, if the weekly
support of Boom 1000 is, let’s say, 12,000 and the price suddenly
comes down to 12,000 from 12,500. Many traders would want to
buy the Boom 1000 as it is a psychological buying zone. Hence,
resulting in a strong pull back toward resistance.
Here is how you can draw a demand zone for the Boom 1000
Index.
As you can see, whenever the price hits the demand zone, it
gets rejected with pressure. At this point, most traders buy the
Boom 1000 which results in a sudden hike in the price.
That being said, you should identify & draw demand zones
along with support & resistance levels to have a much better
view of the market.A support level that lies in the territory of
the demand zone is more likely going to generate
(https://www.facebook.com/sharer.php? a spike in the
media=&url=https://economicgrapevine.com/bo
Boom 1000, hence, you can use a decent position size.
3. 1000-index-trading-strategy/)
TrendLine Support strategy/&description=Boom%201000%20Index%20T
Trendline supports are ascending or descending support levels
depending on the trend of the market. Below is an example of
the trendline support in the Boom 1000 Index.
As you can see, whenever it touches the trendline support, it

gets rejected most of the time and generates spikes. Always
have a stop-loss depending on your position size and
risk/reward ratio because the price can breakout at times,
4. Moving Averages
Once you set up the moving averages 21, 50, and 200, it’s time to
get surprised by its amazing results. Moving averages work
best on almost all timeframes when the Boom 1000 is on an
uptrend. Let me show you a few snapshots of moving averages
applied to Boom 1000 that might intrigue your interest!
Boom 1000 Index H1 Timeframe
This is the Boom 1000 H1 timeframe that clearly shows how the
moving averages reject the price from breaking in. You can find
the moving averages rejections in all timeframes.
To trade with moving averages, you need to first identify the

trend of the market. A clear uptrend is when the MA 21 (Moving
Average) is above the MA 50 and the MA 50 is above the MA
200. If this is the case, the market is in a clear uptrend and you
can expect further upward movement in the market.
Whenever the price comes down, you can attempt to catch a

spike from a moving average in different timeframes with stop-
loss right below the moving average or below the closest
support, depending on how much risk you can afford to take.
For example; When the price comes down to MA21 in the M15
timeframe, you can place your buy order with stop-loss right
beneath the MA21. If it rejected the price, great! If not, wait for it
to test on MA50, which would probably be MA21 in the m30
timeframe. You will notice that the more moving averages the
price faces in different timeframes, the higher the chances of
rejection.
5. RSI Rejection
Relative Strength Index

(https://www.investopedia.com/terms/r/rsi.asp) or commonly
known as RSI is a momentum indicator that measures the
magnitude of recent price changes to evaluate overbought or
oversold conditions in the market.
RSI rejection works in almost every time timeframe when it

comes to the Boom 1000 when in an uptrend. When the RSI
comes below level 30 in an uptrend, that’s a buying evidence.
However, you shouldn’t rely merely on RSI because the Boom
1000 could become stubborn at times and will push the RSI into
breaking zone.   (https://pinterest.com/pin/create/bookm
(https://www.facebook.com/sharer.php?
If you’re like the many traders who trade using media=&url=https://economicgrapevine.com/bo
a smartphone,
here’s the best RSI setting for MT5. (Setting explained below) trading-
As can be seen, the rsi 20-30 rejects the price most of the time
even in the M1 timeframe. If you observe it on other
timeframes, you will notice the same. Hence, RSI is also a
strong evidence and you can expect a spike in the Boom 1000
on RSI rejections.
Here’s how you can set up the above RSI settingmedia=&url=https://economicgrapevine.com/bo
(https://www.facebook.com/sharer.php? for the Boom
1000 index:
1. Go to indicators and add Relative Strength
1000-index-trading-strategy/) Index to your chart.
strategy/&description=Boom%201000%20Index%20T
2. Set the period of RSI “14” and apply to “close” if not by default.
3. Now, go to levels and add level 10,20,30,50,70,80 and 90 and add
a description accordingly.
4. Lastly, go to style and change the pixel to “2” to make the lines
evident.
5. Click “Done” and your settings will be saved.
Related: RSI Divergence

(https://economicgrapevine.com/an-insight-into-rsi-
divergence/)
Boom 1000 Spike Catching

Strategy
Now that you know the mechanism behind spikes, let me share
a simple Boom 1000 spike catching strategy with you. Before
you go and test this strategy on your real account, I encourage
you to test it on a demo account to make sure if it works for
you.
RULES
No Chart, No Trade: Take your time analyzing the market and
don’t start in a haste.
Place your Stop-Loss wisely: Be brave yet realistic with your
stop-loss.
Don’t just trade for Spikes: Look out for potential long-term
positions.
Know when to go big with Boom 1000: Use a decent position
size (lot) in high probabilities and tight stop-losses.
The market isn’t going anywhere: Wait patiently for entry
points.
Don’t let the reds scare you: The reds (loss) will turn into blue

in the span of a second.  (https://pinterest.com/pin/create/bookm
These rules generally apply to all synthetic indices. Here is my
detailed article on key rules for trading synthetic indices trading-
(https://economicgrapevine.com/boom-crash-trading-tips/).
Trading Boom 1000 is more of an art and to become a good
artist, you need to consider even the tiniest of details. These
details could be the reaction of the market to a specific price
level (price/action), momentum changes, rejections, etc…
T
o trade the Boom 1000 successfully, you need to be
patient and realistic. The Boom 1000 can act like a
stubborn child at times and can wash you up in a
single day. That is why you have to have a stop-loss
based on your risk/reward ratio and equity.
Enough of prerequisites, let’s now start off with our strategy.
First thing, observe the trend of the Boom 1000. If it’s in an

uptrend in most of the timeframes, only then should you
attempt to catch spikes. This will increase the probability of
winning trades.
Alright, now that you have your Boom 1000 index chart
decorated with moving averages, supports, and RSI, let me
explain how you can set up your entries.
When the Boom 1000 is on an uptrend and the price comes

down to MA 21 in the M1 timeframe and the RSI is about to test
70, you should look for support nearby, if there’s a support, you
can attempt to catch a spike from the MA21 with stop-loss right
beneath the support level. Ideally, you should place the stop-
loss some 2-3 pips below the support to accommodate for the
spread and stop-loss hunting.
Once the price crosses the MA21 in the M1 timeframe, shift to

the M5 timeframe and wait for the price to test MA21 in the M5
timeframe which probably will be MA50 or MA200 in the M1
timeframe. That should be your next entry point with a stop-
loss below the MA21 or closest support.
In the same way, you can attempt to catch a spike when the
price arrives at MA21 in M15, M30, H1, and H4 timeframe. Note
that higher timeframes have strong chances to reject the price
hence resulting in a series of spikes but you need to be a bit trading-
brave with your stop-loss as the rejection might
1000-index-trading-strategy/) not occur from
strategy/&description=Boom%201000%20Index%20T
the exact moving average line and sometimes, the price may
break-in in order to hunt stop-losses or simple to retest the
nearest support.
That being said, the moving averages of higher timeframes like

M30, H1, and H4 have much better results than lower
timeframes like M5 and M1. In the same way, D1 and W1 can
give you surprising results and can turn out to be potential
long-term positions.
Below is a snapshot of the Boom 1000 M15 timeframe that

shows how perfectly Moving Averages work.
As you can see, sometimes, the price breaks in and bounces

back from nearby support. Whenever the price breaks, don’t
play rough with your stop-loss and wait for it to retest a moving
average or support in a higher timeframe such as M30 or H1.
What If It Stops Working?

Like every other trading strategy, this strategy will not work at
times especially when the Boom 1000 is in a downtrend or
some strong price/action event has occurred. In that case, you
would need to have a cup of coffee and wait patiently for
entries.
The best way is to wait for the market to test at trendlines,

weekly or monthly supports or moving averages in higher
timeframes. Do not take on unnecessary trades in between and
save your equity & energy for the next trading session.
Best of luck with your next pip hunt!
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P OST COMMENT
 THIS POST HAS 9 COMMENTS
19 NOV 2021 REPLY

Emily
Awesome, i am excited about the strategy. It seems to

work
24 DEC 2021 REPLY

Alex Namakhwa
This is good idea I benefit on this.
26 DEC 2021 REPLY

Nathan
Bonjour excusez-moi moi les 3 moyennes mobiles

qu’il faut ajouter sur boom 1000 chez Binary est il
possible de l’ajouter a mt5 sur mon phone ?
26 DEC 2021 REPLY

Fahad zar
Oui M. Natanhhkk, il est possible d’ajouter les
moyennes mobiles à l’aide du mt5 de votre
téléphone. Allez simplement dans le panneau
trading-
indicateur et ajoutez 3 moyennes mobiles.
Définissez chaque valeur moyenne mobile et
profitez de votre trading !
26 DEC 2021 REPLY

Fahad zar
Si vous avez besoin d’une aide supplémentaire

pour votre trading Boom & Crash, pensez à
m’envoyer un e-mail à
fahad@economicgrapevine.com
(mailto:fahad@economicgrapevine.com)
8 FEB 2022 REPLY

Moshe
Now I fully understand how boom works thank you

alot
14 MAR 2022 REPLY

Rustam
Thank you so much for your strategy explanation, god

bless you Sir
17 MAR 2022 REPLY

Fahad zar
You are welcome. Happy Trading
23 MAR 2022 REPLY

Sarwar Alam
Sarwar Alam from Karachi

03322399588
Add me WhatsApp
 Previous Post Next Post 
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Fahad Zar
(Https://Economicgrapevine.Com/Author/Pakistan/)
Fahad Zar is a Chartered Accountant & Technical

(https://e Analyst. He loves to read, write and cycle in his spare
conomic time. Reach out to him at Fahadzar7@gmail.com.
grapevin
e.com/au
thor/paki
stan/)
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Disclaimer: Trading Futures, Forex, CFDs, and Stocks involves

How To Trade Boom 1000?

As a starter, here is what you need to know about Boom 1000.

How To Trade Boom 1000?

As you can see, Boom 1000 seems to be my favorite pair and

Most traders trade the Boom 1000 to catch a spike or a series of

1. Apply Moving Averages

Step3: In the same way, add another smoothed moving average.

Next, you need to draw support & resistance levels. Don’t

In addition, you should identify patterns like double bottoms,

3. Catch The Boom 1000 Spikes

Let’s explain each of the above reasons and incorporate them in

Risk/Reward Ratio: Don’t risk $100 on a single position if you

Demand Zone (https://www.dailyfx.com/education/support-

As you can see, whenever it touches the trendline support, it

Boom 1000 Index H1 Timeframe

To trade with moving averages, you need to first identify the

Whenever the price comes down, you can attempt to catch a

Relative Strength Index

RSI rejection works in almost every time timeframe when it

Related: RSI Divergence

Boom 1000 Spike Catching

Enough of prerequisites, let’s now start off with our strategy.

First thing, observe the trend of the Boom 1000. If it’s in an

When the Boom 1000 is on an uptrend and the price comes

Once the price crosses the MA21 in the M1 timeframe, shift to

That being said, the moving averages of higher timeframes like

Below is a snapshot of the Boom 1000 M15 timeframe that

As you can see, sometimes, the price breaks in and bounces

What If It Stops Working?

The best way is to wait for the market to test at trendlines,

Name (required) Email (required) Website

 THIS POST HAS 9 COMMENTS

19 NOV 2021 REPLY

Awesome, i am excited about the strategy. It seems to

24 DEC 2021 REPLY

This is good idea I benefit on this.

26 DEC 2021 REPLY

Bonjour excusez-moi moi les 3 moyennes mobiles

26 DEC 2021 REPLY

26 DEC 2021 REPLY

Si vous avez besoin d’une aide supplémentaire

8 FEB 2022 REPLY

Now I fully understand how boom works thank you

14 MAR 2022 REPLY

Thank you so much for your strategy explanation, god

17 MAR 2022 REPLY

You are welcome. Happy Trading

23 MAR 2022 REPLY

Sarwar Alam from Karachi

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What are boom Volatility 75 Index Why Boom &

Fahad Zar is a Chartered Accountant & Technical

Copyright 2021 | Economic Grapevine

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