Master the art of drawing Support and Resistance on Deriv

Support and Resistance is the heart and soul of trading. If you really want to succeed in the field of trading. Understanding the concept of Support and Resistance is compulsory.

I personally believe that Support and Resistance is the ABCs of trading and understanding and knowing how to draw Support and Resistance on Deriv can be a game changer.

Key Points About Support and Resistance on Deriv

  • Support and Resistance is the technical analysis concept that displays the strength of buyers and sellers. These are the price levels at which the buying and selling pressure is so high that it can halt the movement of asset prices.

 

  • Support is the price level which displays the strength of the buyers. It is the price level where the buying pressure is so high that it can reverse the current selling trend.

 

  • Vice versa, Resistance is the price level which displays the strength of the sellers. It is the price level which displays that the selling pressure by the sellers is so high that it can reverse the current bullish trend.

 

Identifying Support and Resistance Levels

Support and Resistance on Deriv

Identifying Support and Resistance levels is an easy job. Firstly, you need need to look for the two lows (red and green candles) at the same distance which is our Support level and vice versa, Spot two highs of green and red candles at the same distance for resistance level.

Drawing Support and Resistance Levels on Deriv

Deriv trading platform offers numerous tools and accessories to draw high-quality Support and Resistance Levels such as.

 

Support and Resistance Levels on Deriv

Horizontal Line: Once you have spotted the Support and Resistance Levels in the price chart. You need to place a Horizontal line above or below the same. Find the Horizontal from the tools section. Now, place the Horizontal line below the lows for a Support level and vice versa, Place the Horizontal line above the two highs for the Resistance level.

 

Support and Resistance Levels on Deriv

Trend Line: The other way via which you can draw the Support and Resistance levels are trend line. To set a trend line click on the tools button and search for the trend line. Now, similarly, find two lows and stretch the line accordingly.

 

Increase your Profitablity ratio with Parabolic SAR on Deriv

PSAR or Parabolic SAR is one of the most unique and powerful tools that the Deriv trading platform offers. In this article, we will discuss everything about Parabolic SAR and how you can use the indicator to find buying and selling opportunities.

What is Parabolic SAR ?

Parabolic SAR is a technical analysis tool developed by J. Welles Wilder. this indicator of uses of a series of dots above or below the price. it is primarily used to determine the potential points in the price movement of an asset.

The indicator derives its name from the parabolic shape it creates when plotted on the price chart. when you see the PSAR dots above the price it signals an upcoming bearish trend and vice versa, when you see the PSAR dots below the price it signals an upcoming bullish trend.

The distance between the dots and the price represents the strength of the trend. when you see a big distance between the price and the dots it suggests a strong trend vice versa when you see a small distance between the dots and the price it suggests a weak trend.

Unboxing Parabolic SAR indicator on Deriv

 

To open the indicator you need to log in to your Deriv account. Next, click on the indicator button and search for the indicator in the trend section and click the name. when you open the indicator you will see the important components such as Minimum AF (Acceleration Factor) and Maximum AF (Acceleration Factor).

The Minimum AF (Acceleration Factor) determines the rate at which the indicator accelerates towards the price while the Maximum AF (Acceleration Factor) define the maximum value the AF can reach.

Buy with Parabolic SAR dots below the price

 

 

When you see the PSAR dots below the price it signals an upcoming bullish trend and here you can place a buy trade.

 

Sell with Parabolic SAR dots above the price

 

 

When you see the PSAR dots above the price it signals an upcoming bearish trend and here you can place a sell trade.

 

Create a Powerful trading system with Awesome Oscillator on Deriv

In the world of trading, It is very important to find and use high-quality trend Indicators and one of the most popular trading indicators among traders these days is the Awesome Oscillator. Awesome Oscillator is known for its simplicity and effectiveness. This indicator is very easy to use. However, In this article, I will show you how you can make this indicator even more effective and place high-quality trades.

What is an Awesome Oscillator?

Awesome Oscillator is one of the most popular technical tools developed by Bill Williams. This indicator is made from the composition of simple moving averages and histogram lines. This indicator consists of two moving averages: a 34-period SMA and 5 period SMA. This indicator has a histogram line that oscillates around a zero line which is obtained by subtracting the 34-period SMA from the 5-period SMA.

How to find and set Awesome Oscillator on Deriv?

 

How to find and set Awesome Oscillator on Deriv?

In order to find and set Awesome Oscillator on Deriv follow the steps given below:

Step 1: Log in to your Deriv chart. In case you don’t have one click here

Step 2: Set the Candlestick chart as the default chart. just click on the chart button.

Step 3: Select the desired currency you want to trade on from the asset button at the top of chart.

Step 4: Lastly, click on the indicator button and search for Awesome Oscillator in the list.

 

Find buying and selling opportunities with Awesome Oscillator on Deriv

 

 

You can find buying and selling opportunities with Awesome Oscillator on Deriv using the histogram colour changes in the histogram bar. when the histogram line colour changes from red to green it signals a bullish trend and you can place a buy trade here. vice versa, when the histogram line colour changes from green to red it signals a bearish trend and you can place a sell trade here.

How to use Awesome Oscillator on Deriv

You can Awesome Oscillator on Deriv in multiple ways such as

 

Trend confirmation: You can use the Awesome Oscillator to confirm the direction of the trend. When the histogram lines are constantly above line zero it signals a strong bullish trend. opposite When the histogram lines are constantly below line zero it signals a strong bearish trend.

 

 

Trend Reversal: You can even use this indicator to find possible trend reversals. when combined with other trend indicators like Support and Resistance you can find much more accurate signals for entry and exit.

 

Suppose, You have found a bullish signal with Awesome Oscillator and the price is near the support level it signals a possible upcoming bullish trend reversal and vice versa You have found a bearish signal with Awesome Oscillator plus it is near the resistance level it signals a possible upcoming bearish trend reversal.

 

 

 

Increase your profitability ratio with Weighted Moving Average on Deriv

Moving Average is one of the most compulsory chapters in the field of trading and therefore, It is very much important for traders to learn and understand this indicator properly. In this article, I am going to discuss one of the most important family members of moving averages name Weighted moving average.

Weighted moving average Basics

WMA (Weighted moving average) is a technical analysis tool used by traders to smooth out the price data over a specific period. similar to other moving averages. This indicator is considered much more powerful than other moving averages as it assigns more weight to the most recent price data. The weight assigned to the price data reminds the level of importance the most recent price data point is assigned the highest weight and the weight decreases gradually for the past price data.

How to calculate the weighted moving average?

As said above, In weighted moving average you need to assign data points. the most recent price data will have greater points while the oldest one will have the least points. This helps the weighted moving average indicator to find the most accurate trading signals for the traders.

Suppose you want to calculate 5 periods weighted moving average for a security price where

Day 1 Price = 10

Day 2 = 20

Day 3 = 25

Day 4= 30

Day 5 ( current price) = 35

Here, the sum would be = 1 + 2 + 3 + 4 +5 =15

And the five-day wma would be = 10 * (1/15) + 20 * (1/15) + 25 * (1/15) + 30 * (1/15) + 35 * (1/15) =8

How to add WMA on the Deriv chart?

 

How to add WMA on the Deriv chart?

Firstly log in to your Deriv account. In case, you don’t have one you will get access a direct to free account where you will get a $10, 000 virtual currency account. Once you have signed up, you will land on the Deriv trading dashboard. now, click on the chart button and set your default chart to candlestick. Next, click on the currency button and select your desired currency. Now, click on the indicator button and search for moving average and click the name. Lastly, set the type as WMA and make the necessary amendments such as change in period and colour of the indicator line. you can even darken the line for better visibility.

How to trade with a weighted moving average on the Deriv chart?

You can easily trade with a weighted moving average on the Deriv chart there are multiple ways of trading with the indicator, however, the most popular ones are

 

How to trade with a weighted moving average on the Deriv chart?

 

Single WMA: Here, You need to look for the crossover of the price and the indicator line. when the price intersects above the indicator line it signals a bullish trend vice versa, when the price intersects below the indicator line it signals a bearish trend. with a bullish trend, you need to place a buy trade and vice versa with a bearish trend you need to place a sell trade.

 

 

Dual WMA: You can even use two WMAs where you need to focus on the intersection of these two lines. when the fast line interests above the slow line it signals a bullish trend and vice versa when the slow line intersects above the fast line it signals a bearish trend.

For Instance, Let’s use two WMA line with periods 12 and 25. when line 12 (Green line) intersects above the line 25 (Red line) it signals a bullish trend and conversely,  when line 12 crosses below line 25 it signals a bearish trend.

Place perfect trades with Exponential Moving Average (EMA) on Deriv

 

Exponential Moving Average Basics

Exponential Moving Average or EMA is a technical analysis tool that measures the average price of a security just like SMA however, the Exponential Moving Average weighs more on the most recent price data and can give you a better signal against the SMA indicator.

The Exponential Moving Average is a lag indicator that determines the direction in which the security price is moving. This indicator uses the historical price data based on which traders can identify the possible price movements and reversals of a security.

The formula for EMA is: ( K * ( C – P ) ) + P

Here, C=  Current Price

P = Previous period EMA

K = Exponential Moving constant

How to set up Exponential Moving Average on Deriv?

 

Exponential Moving Average on Deriv

 

In order to add Exponential Moving Avergae on Deriv. Firstly, visit their homepage. and register a free account. once done you will land on the trading dashboard. Now, click on the chart button and set up your default chart to candlestick next, click on the indicator button and search for Moving average in the list now, set the type as Exponential Moving Average and make necessary changes as per your trading nature.

How to choose a perfect period for Exponential Moving Average on Deriv?

The Exponential Moving Average is a sensitive indicator that reacts much more faster than Simple Moving Average. However, If you want to better results with this indicator you need to set the period according to your trading nature.  If you are a trader who trades in a long time frame chart of 1 hour or above you should consider the period of 50 -200 similarly, If you are a trader who trades in a short time frame chart for like 30 minutes you should consider 12 and 25 period.

How do you trade with Exponential Moving Average on Deriv?

Trading with an Exponential Moving Average is an easy job. You just need to focus on the intersection of the price and moving average line. There are two ways of trading with an Exponential Moving Average on Deriv.

 

How do you trade with Exponential Moving Average on Deriv?

 

 

Solo EMA: You can use Exponential Moving Average solely on the Deriv chart. when the price intersects above the EMA line it signals a bullish trend and vice versa, when the price intersects below the EMA line it signals a bearish trend.

 

 

EMA Combination: You can even use two EMA on Deriv chart. For Instance, let’s use EMA periods 12 and 25. when the EMA line 12 intersects above line 25 it signals a bullish trend and vice versa, when the EMA line 12 intersects below line 25 it signals a bearish trend.

 

 

 

Place easy trades with Simple Moving Average (SMA) on Deriv

SMA or you can call it Simple Moving Average is a very basic indicator however, is a powerful one. This indicator is used by traders to identify the upcoming future trends and reversals of a security price.

Simple Moving Average Basics

Simple Moving Average is one of the types of Moving Average. The Moving Average has nine family members some of the most popular ones are EMA (Exponential Moving Average) , WMA (Weighted Moving Average) , and one of them is SMA (Simple Moving Average).

The Simple Moving Average is basically the addition of the security closing price and the division by the number of periods. The formula for the Simple Moving average is as follows:

SMA = C1 + C2 + …….CN / N

Here, C = Closing price of a security

N = Number of prices

How to add Simple Moving Average on Deriv chart

 

How to add Simple Moving Average on the Deriv chart

In order to add Simple Moving Average on the Deriv chart follow the steps given below

Step 1: Log in to your Deriv account. In case you don’t have one click here

Step 2: Once you have logged in click on the chart button and set your default chart to candlestick

Step 3: Click on the indicator button and search for Moving Average in the list

Step 4: Click on the Moving Average name and set the type to SMA

Step 5: Make necessary amendments like periods and colour and once you are done click apply.

How to trade with Simple Moving Average on the Deriv trading platform

 

When the price and the moving average line intersect each other it creates buying and selling opportunities for the traders.

 

 

How to trade with Simple Moving Average on the Deriv trading platform

 

When the price intersects above the moving average line it signals an upcoming bullish trend and here you can place a buy trade.

As, you can see above is the 10-minute chart of AUD/JPY and we can clearly see the price intersects above the moving average which signals a bullish trend and we can place a buy trade here.

 

How to trade with Simple Moving Average on the Deriv trading platform

 

Similarly, When the price intersects below the moving average line it signals an upcoming bearish trend and here you can place a sell trade.

As, you can see above is the 10-minute chart of AUD/JPY and we can clearly see the price intersects below the moving average which signals a bearish trend and we can place a sell trade here.

 

 

 

Master the art of using Relative Strength Index (RSI) Indicator on Deriv

Deriv is one of the most popular trading platforms. They offer numerous trend indicators and one of them is RSI or you can call it Relative Strength Index.

RSI Indicator Basics

The Relative Strength Index is a trend indicator that is mostly used to find upcoming trends & reversals. The default period for the indicator is 14 days which is mostly used in long time frame charts. You can even use this indicator for current trends & reversals you just need to make some tweaks & changes and reduce the indicator period.

Talking about the components of indicators, this indicator uses a moving average line that oscillates around line 0-100 when you see the reading near line 30 it signals an oversold level vice versa when you see the reading near line 70 it signals an overbought level.

 

How to add RSI Indicator on the Deriv chart?

In order to add an RSI indicator on the Deriv chart, Login to your Deriv account first. Secondly, set your default chart as Candlestick from the middle left of the chart. Next, click on the currency button and select the desired currency you want to trade. Lastly, click on the indicator and search for the RSI indicator and click the name. Now, make necessary amendments on indicators like period, and line colour as per your trading nature and once you are done click apply.

How to trade with RSI Indicator on Deriv?

 

 

Placing calls with RSI Indicator is pretty simple and easy. when the moving average in the RSI indicator is oscillating near line 30 it signals an upcoming bullish trend and you can place a buy trade here.

 

 

 

Conversely, when the moving average in the RSI indicator is oscillating near line 70 it signals an upcoming bearish trend and you can place a sell trade here

 

How to deal with RSI Indicator Divergence

 

 

Multiple times while accessing the indicator you will notice that the RSI line and Price are not moving in an equivalent direction. This usually happens due to market fluctuations. In such circumstances, you should wait for a clear trend and place trades accordingly.

The best thing you can do is try the RSI Indicator on the Deriv demo account and once you have practised it properly you can shift to Deriv real account.