Boom & Crash indices are the new hot for a lot of traders out there due to their unique behavior. They follow almost every technical & price action strategy and that is why attract traders who dread fundamental analysis.
Being a new thing to a lot of traders out there, there are a lot of questions that need to be answered. This article contains questions along with answers regarding the Boom & Crash Indices. I have tried to include as many questions as I can think of. If you have a question, you can ask in the commend section below!
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Boom & Crash FAQs
Boom & Crash indices follow & respect the rules of technical analysis and do not have any fundamentals. Since it is a purely technical market, it respects stop-loss most of the time. However, stop-loss hunting is necessary for the liquidity of any market and Boom & Crash is no different.
There are a lot of techniques to catch spikes in the Boom & Crash including Support & Resistance levels, Supply & Demand zones, Moving Averages, Patterns like ascending/descending triangles, head & shoulders, etc… Here is my detailed article on trading the Boom 1000 Index.
The Boom & Crash indices can be traded 24/7 and the market never closes. So yes, you can trade the Boom & Crash indices on both weekdays and weekends.
In Boom 1000, a spike occurs every 1000 ticks on average whereas, in Boom 500, a spike occurs every 500 ticks on average. Furthermore, the Boom 1000 is relatively volatile than the Boom 500.
In the Crash 1000 index, a drop occurs in the price every 1000 ticks on average whereas, in the Crash 500, a drop occurs in the price every 500 ticks on average. Furthermore, unlike the Boom indices, in Crash indices, Crash 500 is relatively volatile than the Crash 1000 index.
Boom & Crash indices are randomly generated numbers and follow a pure technical pattern. They do not have any news or reports hence you can rely on technical analysis and price action only. Here are some rules for trading the Boom & Crash indices.
If you have any queries regarding the Boom & Crash indices, leave a comment below!
7 comments
I see that the arrow on spike detector sometimes appear after the spike and sometimes arrow moves with every tick.
Hi Demha, yes, it happens sometimes, especially if the pair is moving against the trend. However, don’t solely rely on the spike detector and place a realistic stop-loss somewhere below or above 5-10 pips. Also, before placing the trade, check other indicators like the RSI, moving averages and Ichimoku Cloud for confirmation. I hope it helps.
Hi,
Nasdaq and dow jones are indecies which there are companies belong this indecies like Netflix or Mcdonald’s….are the boom and crash indecies the same? I mean is there any company belongs to these indecies? If yes, what are these?
Hello Ali,
Unlike Nasdaq and Dow Jones, the Boom & Crash indices are synthetic indices. Basically, these indices are based on random computer-generated numbers and are not associated or backed up by any company or organization. Since they are randomly generated patterns, they respect the rules of technical analysis more than any other trading pair. I hope it helps!
Thanks in advance
You are welcome and Happy Trading!
How I can get spikes detector on my mt5 Deriv account?