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Do you want to make a regular profit of $20 per day with only an initial capital of $100 in IQ Option? In this article, I will introduce to you a trading strategy with Stochastic indicator that has helped me to do that easily.
Register IQ Option and Get Free $10,000 Risk warning: Your capital might be at risk.
Things to know about Stochastic indicator in IQ Option
The Stochastic Momentum Indicator is an indicator that measures oscillators by comparing the closing price to the range between the high and the low for a specified period. The Stochastic Oscillator neither follows the price nor reflects the trading volume. It only reflects the speed or momentum of the price.
As a general rule, momentum changes direction before the price is reflected on the chart. Thus, this momentum indicator can be used to predict a reversal.
This is the most important signal when we use Stochastic to trade in IQ Option. You can also use it to identify bull and bear market patterns to predict future reversals. It is also useful in identifying overbought and oversold levels.
How to use Stochastic indicator effectively to make profits in IQ Option
To use the Stochastic to find a reversal point, we will open a trade when the price meets the following conditions.
Open a HIGHER order when the fast and slow moving averages cut the 20 from below and move upwards.
Open a LOWER order when the fast and slow moving averages cut the 80 from above and move downwards.
Money management
To increase the ability to accurately predict the reversal points based on the Stochastic indicator, we will use the Martingale system with a cycle of 3 consecutive orders. It has the advantage that a later winning order will cover the loss of previous losing ones and win an amount of profits.
For example, with a capital of $120 you will go as follows.
Order 1: $15
Order 2: $30
And order 3: $75
If you win in any order, you will return to the amount of the first one of 15$.
Review the Stochastic indicator trading strategy in IQ Option
October 5
Order 1: The 2 fast and slow moving averages of the Stochastic indicator cut the 20 from below. Opened a HIGHER order with an amount of $15 with an expiration time of 1 minute.
Order 2: Open a LOWER order when the 2 fast and slow moving averages of the Stochastic cut the 80 from above.
October 6
Order 1: The price increased strongly again. At the same time, the 2 MAs of the Stochastic indicator crossed the 20 from below. It was eligible to open a HIGHER order safely.
Order 2: The price started to decrease. Meanwhile, the 2 fast and slow moving averages crossed the 80 from above. Opened a LOWER order at that moment.
Summary
That’s how I make $20 profit per day in IQ Option. If you do not have an effective trading strategy for yourself, then try to use the Stochastic indicator strategy that I introduced above.
Maybe it will be suitable and bring stable daily profits for you. Remember to test it first on the Demo account before trading for real. Good luck.
Register IQ Option and Get Free $10,000 Risk warning: Your capital might be at risk.
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