The beginning of trading is the same for everyone — finding a reliable platform, studying its functions, and the proposed trading mechanics. Stockity is no exception. In this article, we will discuss how to trade on Stockity and look at indicators and strategies available on the platform.
How does Stockity work?
Stockity is an incredibly convenient simple-to-navigate trading platform, even for novice traders with less experience. All you need to do to find out how Stockity works and its benefits is to register. After that, a demo account will be available, allowing you to explore all the platform’s features thoroughly.
With the help of a demo account, you can learn how to read a chart, study, and skillfully use trading indicators such as RSI, Moving Average, Bollinger Bands, and others. Over 30 assets and drawing tools are also available to explore and analyze the market. Overall, it will help you correctly forecast the rise/fall in the price of the chosen asset.
What you need to trade on Stockity: tutorial
Traders usually ask, “What do I need to trade on Stockity? “. On Stockity you can use two trading mechanics: Fixed Time Trades (FTT) and Contract For Difference (CFD).
FTT is the most popular mechanic among traders, so let’s see how to trade on Stockity using it. Trading on the platform is convenient, and you only need to follow a few steps:
- Step 1: Select the asset you wish to trade: gold, currency pair, commodities, or other. Select assets with high volatility and ensure you only select the ones you are most familiar with.
- Step 2: Analyze the chart. You can comprehend the fluctuation of asset prices by using Stockity indicators and drawing tools.
- Step 3: Determine the end time of the trade from 60 seconds to 1 hour.
- Step 4: Enter the amount you want to invest. It is best to indicate the amount you are willing to risk, for example, no more than 5% of your account.
- Step 5: Based on the data obtained from the market analysis, make a forecast — whether the asset price will go UP or DOWN and click the green/red arrow accordingly.
If your forecast is correct, then you will get a profit, otherwise, you will lose your investment.
Stockity indicators
Before you start trading, you must become familiar with fundamental trading tools, like Stockity indicators. These indicators, which are mathematical computations based on volume or price, can guide your trading decisions.
Here are the most popular Stockity indicators that you can include in your trading strategy:
- Moving averages (MA) measure a stock’s average price over a certain amount of time, assisting us in spotting patterns and probable entry/exit points.
- Relative Strength Index (RSI) is a momentum indicator that measures the speed and magnitude of an asset’s recent price changes by letting us know whether an asset is oversold or overbought.
- Bollinger Bands help you understand where the market is heading based on prices. This indicator involves using three bands: one for the high level, another for the low level, and a third for the moving average. When prices approach the lower band, the market may be oversold, and vice versa.
Remember that Stockity indicators are essential for technical analysis. Otherwise, you will need help to correctly forecast the asset price’s future movement or find the trade’s entry/exit point.
Stockity strategies
All traders, whether novice or seasoned, should know various strategies. The two best Stockity trading strategies are listed below.
Bollinger Breakdown
This is one of the most popular Stockity strategies for which the Bollinger Bands indicator is used. There are periods of flat on the chart when the asset price remains without significant changes for a long time. After such periods, quotes return to an uptrend or downtrend again, and you can get a profit on this. Visually, a calm period always looks like minor price changes in a narrow range.
However, after this lull, there is always a reversal, and the price either begins to rise or fall actively. You have to find this horizontal price movement and make a trade at the very moment when it ends. This Stockity strategy is called “Bollinger Breakout” after the technical analyst John Bollinger, who has been developing it for ten years.
So, how to trade this Stockity strategy? Select the Bollinger Bands indicator. On the chart, you will see that in some places, these bands move away from each other, and sometimes, on the contrary, they narrow and move close to each other for some time.
When the bands move away, it means that there is an active uptrend or downtrend. When the bands converge, the price change slows, and a flat period begins. In this case, if the price goes beyond the lower or upper line of the indicator, you can open a trade in the direction of a new price movement.
Trade UP when the price candle closes above the upper line of the indicator and DOWN if the price candle closes below the lower line of the indicator.
Market convergence/divergence with the RSI
The Relative Strength Index (RSI) is one Stockity indicator that determines the strength of the trend and the likelihood of its change. It is helpful in any market condition: during a flat, uptrend, or downtrend. By adopting the RSI, you will be able to predict the convergence/divergence of the market. Let’s see what settings to use for this.
Open the RSI indicator and set the following parameters:
- overbought — 70;
- oversold — 30,
- period — 8.
To open a UP trade, wait until the RSI falls below the set oversold level and forms two lows there, where the first low of the second.
Next, on the “Trading tools” tab, select “Ray” and draw it from left to right through the lows on the RSI indicator. Thus, you will get an uptrend line. Similarly, we draw the ray through the corresponding minima on the graph. This is also a trend, but this time down. When the upper ray points down and the lower ray points up, this is called convergence. It indicates an upward reversal.
Make a UP trade for 1-5 minutes. It is important to note that if both rays are directed upwards, there is no convergence, and it is not worth opening a trade.
Easy and understandable trading
Stockity is a reputable trading platform that all traders, whether novice or seasoned, can use to get additional income. Trading on Stockity is clear to understand, and traders must follow a few steps while incorporating strategies and indicators into their decisions to have positive outcomes. Remember that trading is risky, making practice and education critical to avoid losses.
