Is Boom & Crash Manipulated?

Boom & Crash indices are synthetic indices offered by Deriv.com. These indices are well known for their unique spike in price and attract a lot of traders. While a lot of traders make money trading the Boom & Crash indices, it can drain your equity at times which raises questions over its reliability. Is Boom & Crash really manipulated? This article explains…

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Is Boom & Crash Manipulated?

I have been trading the Boom & Crash indices for quite a time now. Before trading these synthetic indices, I used to trade cryptocurrencies, metals, and stocks and technical analysis was really my thing.

The shift to synthetic indices, which include the Boom & Crash as well, was not that difficult since they follow the rules of technical analysis. The good thing was that I didn’t need to analyze financial reports on a daily basis since the Boom & Crash don’t have any fundamentals and would solely rely on my charts.

A major difference that I noticed in Forex and Boom & Crash is the market movement. While an average Forex pair moves around 100 pips a day, the Boom & Crash movement can go well over 500 pips and are highly volatile pairs.

When I joined different groups on Telegram & WhatsApp, I heard traders talking about the manipulation of the Boom & Crash indices and how these indices hunt stop-losses. To me, it didn’t make sense because I was happily in the blues.

Let’s all agree stop-loss hunting is everywhere and without the hunt, there wouldn’t be any liquidity left in the market. Thing is that one must accept this fact and think about the positive side of hunting…

Stop-loss hunting kicks out impatient traders from the market and distributes the wealth among the patient and brave ones. When on the hunt, the pair just doesn’t follow any technical and price action strategy and will move fiercely toward its destination. That is why, instead of being a victim of the so-called manipulation, you should use it to your advantage. Here’s how…

Using The “Manipulation” To Your Advantage

There are days when you need to stay away from the market instead of trying to catch spikes from every possible spot. Wait patiently for the market to hit the destination and look for reversal evidence instead of hoping for it to reverse magically.

Trading is an art and the best artists are the best observers. Observe the market and find different patterns. Create a beautiful chart and draw all the important levels of the market. Once you are ready, stick to your plan and don’t improvise with each moving candlestick. Be brave and believe in your analysis since it purely follows technical analysis.

Does Boom & Crash Changes Its Pattern Every Month?

Another famous manipulation that I have heard of is that the Boom & Crash indices change their pattern every month or week hence failing the strategies out there. It is true up to some extent because these synthetic indices are just randomly generated numbers and do not have a physical form, nor are pegged with any currency or commodity, and can move in a direction for days and weeks!

That is why you should never play rough with your stop-losses and follow some rules & discipline. Here’s my article on Key Trading Rules For Boom & Crash Indices.

Bottom-Line

Boom & Crash indices are not manipulated since they follow a technical pattern and respect the rules of price action. However, the volatility of the Boom & Crash indices can lead you to believe they might be manipulated but it’s just the way they are programmed.