The best time to trade boom and crash is what every traders must know and wait for in order to make a consistent profit. Most traders enter their trades at the wrong time, and this results in them either suffering a huge loss or blowing their trading account.
A trader will win his trade if he has the right skill, a good trading strategy, and is patient enough to trade at the right time.
This post will show you the best time to enter a buy or sell position in the boom and crash market and increase your win rate. We will first start with the factors that influence price movement and how you can use those factors to determine when to enter or exit the market.
So without further ado, let’s get started.
Table of Contents
Factors used to know the Best Time to Trade Boom and Crash
Because traders have different trading strategies, there are some factors that influence the right time to trade the market. Here are some of them.
1. Trading Time Frame
Traders analyze the market using various timeframes, and the timeframe any trader uses is very much dependent on their trading strategy.
For instance, scalpers use the 1H timeframe and other lower time frames, while day traders and swing traders mostly use the 4H timeframe and higher ones in their technical analyses.
So, before you think of the best time to trade boom and crash, you need to determine the kind of trader you are and be clear with the timeframes you walk with.
2. Support and Resistance.
Once you have established the right timeframe to work with based on your trading strategy, you need to spot the support and resistance levels using technical analysis. Once you identify the support and resistances, you then watch out for breakouts or reversals.
3. Candlestick signals
You must study the candlestick patterns and know how to use them to spot when a breakout or reversal is about to occur in the market. There are over 16 candlestick patterns available, and each of them has a unique way of signaling price movement. For instance, “bearish engulfing,” “bearish engulfing,” and “three black crows” are three candlestick patterns that signal a selling pressure in the market.
4. Technical indicators.
Technical indicators are another invaluable tool for determining the best time to enter or exit a trade. Technical indicators take current price behavior, compare it to past behavior, and then display it as a signal line.
Technical indicators are extremely useful in determining the best time to buy or sell in the market. But the truth is that all indicators are not equally important. Some will give you good signals, while others may give you false signals. I recommend that you read my post on the best indicators for trading boom and crash.
Best Time to Trade Boom and Crash
The best time to trade boom and crash is when the price breaks out of consolidation or reacts to previous support or resistance levels.
A combination of technical indicators’ signals and candlestick patterns can help you spot these points and enter your trade at the best time.
Best Time to Trade Boom and Crash In South Africa.
The best time to trade boom and crash is when the price breaks out of consolidation or reacts to previous support or resistance levels.
You can spot breakout levels and trend reversals with the help of technical indicators and price actions, as we have discussed above.
The result from my research shows that trend reversals and reactions at the support and resistance level occur at the following time for South Africans.
- 01:00 SAST
- 05:00 SAST
- 09:00 SAST
- 17:00 SAST
- 21:00 SAST
- 13:00 SAST
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Major range breakouts, trend reversals, and price jumps occur between 01:00 SAST and 13:00 SAST. However, I can’t rule out that you might find the market consolidating at this time(01:00 SAST and 13:00 SAST), but it happens once in a while.
Best Time to Trade Boom and Crash in Kenya.
The best time to enter the boom and crash in Kenya is when prices break out of consolidation or react to an important zone(support or resistance level).
From my trading experience, the trend reversals and reactions at the support and resistance zones usually occur at the following times for Kenyans.
- 14:00 EAT
- 06:00 EAT
- 10:00 EAT
- 18:00 EAT
- 22:00 EAT
- 12:00 EAT
The major breakout or reversal mostly occurs at 14:00 EAT and 18:00 EAT. However, I must point out that this does not happen all the time.
Best Timeframe for Trading Boom and Crash
The best timeframe in which you should trade boom and crash is solely dependent on the type of trader you are. What appears to be a higher timeframe for a particular trader may appear to be a lower timeframe for another trade. For example, scalpers regard the 1H timeframe as a higher time frame, while swing traders see it as a lower time frame.
In summary, the best timeframes to trade boom and crash for scalpers are 1H and lower timeframes, while day traders and swing traders work with higher timeframes.
Conclusion
Since there is no market session in the boom and crash market, there is no specific time that is best for trading boom and crash. For a higher win rate, I recommend that you enter or exit the boom and crash market when the price breaks out of consolidation or reacts to previous support or resistance levels.