Best Trading Strategy For Pocket Option Signals

Best Trading Strategy For Pocket Option Signals

In the ever-evolving world of binary options trading, Pocket Option stands out as a top-tier platform offering powerful tools, lightning-fast executions, and reliable signals. But even the best signals mean nothing without the right trading strategy to back them up. Here, we unveil the best trading strategy for Pocket Option signals — a comprehensive, high-precision approach designed to help traders maximize profits and minimize risks.

What Are Pocket Option Signals?

Pocket Option signals are real-time trade suggestions based on technical indicators, price action analysis, and algorithmic predictions. These signals indicate when to enter a trade, in which direction (CALL or PUT), and sometimes even suggest expiry time.

These signals can be manual (from professional traders or Telegram groups) or automated (via bots and tools within the platform). While signals provide opportunities, the real power lies in the strategy used to execute them.

The Foundation: Combining Signals With Smart Money Concepts

To build the best trading strategy, we merge Pocket Option signals with the most effective and time-tested trading principles:

1. Follow the Trend – But With Confirmation

Before jumping on a signal, confirm it aligns with the dominant market trend. Use indicators like:

  • Moving Averages (EMA 50 & 200)

  • MACD Crossovers

  • Bollinger Bands Direction

If the signal supports the trend, your win probability increases significantly.

Pro Tip: If a CALL signal appears but the price is below both the EMA 50 and 200, ignore it. The market is likely bearish.

2. Use Support and Resistance Zones

Pocket Option signals become exponentially more accurate when paired with support/resistance levels.

  • Draw horizontal zones on key price levels using the 1-minute, 5-minute, and 15-minute charts.

  • Only trade signals that occur near these levels, especially those that show rejection candles (like pin bars or engulfing patterns).

Example: If a PUT signal appears at a strong resistance zone and you see a bearish engulfing candle — that's a high-probability trade.

3. Combine RSI and Stochastic for Reversal Confirmation

  • If both indicators show overbought and a PUT signal appears — take the trade.

  • If both are oversold and a CALL signal comes in — enter confidently.

Settings:

  • RSI: 14

  • Stochastic: 14, 3, 3

This combo filters out weak signals and keeps your entries sharp.

4. Candlestick Pattern Recognition

Before acting on any signal, observe the price action. Look for:

  • Reversal Patterns: Pin bar, hammer, shooting star, engulfing

  • Continuation Patterns: Doji with trend, inside bar breakout

Pocket Option signals often coincide with these patterns. Matching a signal with a candlestick pattern increases the accuracy rate.

5. 3-Point Entry Confirmation Strategy

To ensure you’re taking only the best trades, apply this 3-step checklist:

  1. Signal Received

  2. Confluence With Technical Zone (S/R or Trendline)

  3. Indicator + Candlestick Confirmation

If all three points align, enter the trade. If even one is missing, stay out. Discipline is key in binary options trading.

The Martingale Myth – Use Caution

Many traders pair signals with the Martingale strategy, doubling their investment after a loss. While it can recover losses, it also risks wiping out your account if not used cautiously.

Instead, consider a fixed ratio compounding method, where you increase your investment only after a winning streak, not after losses.

Risk Management Tip: Never risk more than 3% of your account on a single trade.

Best Timeframes to Trade Pocket Option Signals

Timing matters. The most effective timeframes for Pocket Option strategies are:

  • 1-Minute and 5-Minute Expiry: Ideal for scalping and fast trades.

  • 15-Minute Chart for Analysis: Best to identify major zones and trend direction.

Trade during high volatility sessions:

  • London Session (7 AM – 4 PM GMT)

Avoid low liquidity hours unless you're using a range-bound strategy.

Psychology: The Hidden Ingredient of a Winning Strategy

Even the best strategy fails without strong trading psychology. Practice:

  • Patience: Wait for the perfect setup.

  • Discipline: Stick to your strategy, no matter what.

  • Emotional Control: Don’t chase losses or overtrade.

Recommended Tools to Enhance Signal Trading

  • TradingView: For charting and drawing zones.

  • Telegram Groups: Join trusted free or VIP signal providers.

  • Economic Calendars: Avoid trading during high-impact news events.

Bonus Tip: Use the Pocket Option demo account to test every new strategy before going live.

Advanced Entry Strategy: Sniper Mode

Here’s a precise technique for advanced traders:

  1. Receive a signal.

  2. Enter only if the retracement stalls and a rejection candle appears.

This reduces the chance of entering at a bad price point and improves your risk-to-reward ratio.

Backtesting and Forward Testing Are Critical

Never jump into trading live with a new strategy. Backtest the method on historical data and forward test it in a demo account. Collect statistics:

  • Win rate

  • Average return per trade

  • Drawdown rate

A strategy that delivers a 65%+ win rate with proper risk management is profitable in the long run.

Conclusion: Pocket Option Signals + Strategy = Profits

By aligning signals with technical analysis, candlestick patterns, and risk control, you give yourself a real edge in the market.

Whether you’re a beginner or an advanced trader, this strategy offers a scalable and consistent approach to binary options trading on Pocket Option. Stick to it, refine it, and let your discipline lead your results.