Synthetic Indices are different type of trading pairs that have no fundamental nature. It means no news events, reports or speeches can affect these indices and they are merely computer generated numbers.
So what are the factors that drive synthetic indices? Well, they follow a pure technical pattern and you can make a good profit if your decisions are purely based on technical analysis.
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In this article, I will explain how you can effectively trade synthetic indices and make a fair share of income using your technical & charting skills.
I have also shared a PDF guide for synthetic indices that explains the strategies outlined in detail.
How to trade Synthetic Indices?
As a starting point, here’s what you should consider before trading synthetic indices:
- Understand that they are highly volatile: The movement in some synthetic indices could easily be 300+ pips per day. This is unlike other humble forex & currency pairs and you should consider this fact before placing your trade.
- Don’t forget to place stop-loss: The fact that synthetic indices are highly volatile – you should never play around with your stop-loss. Think hundred times before placing your stop-loss but once you set a stop-loss, do not change it under any circumstances.
- Always have your chart ready: Draw your support & resistance levels along with highlighting demand and supply zones. Also, add indicators such as RSI, Ichimoku cloud, or other indicators that you normally use in your strategy.
Tip: RSI Divergence also works best for synthetic indices.
Once you’ve taken care of these, it’s time to start trading synthetic indices.
Here’s how you can make the best out of Synthetic Indices
I’ve created a step-by-step PDF guide that’ll enable you to trade Synthetic Indices profitably. This PDF guide for synthetic indices is based on tested strategies. I have also included the DO’s and Don’ts for synthetic indices and have discussed the tools and indicators that work best for synthetic indices. Though there are a lot of synthetic indices, I’ve taken the example of Boom 1000 for this demonstration.
You can download the PDF Trading Guide for Synthetic Indices Below:
If you are unable to download the pdf guide for synthetic indices, please reach out to us directly.
