Catching Boom and Crashe on Deriv Tradingview using Trendlines

14 de jun.

Catching booms and crashes on Deriv using TradingView involves utilizing trendlines to identify potential reversal points and breakouts. Here’s a short guide on how to do this:

### 1. Understanding Boom and Crash Indices
- **Boom Index**: Represents a market where prices tend to spike upwards occasionally.
- **Crash Index**: Represents a market where prices tend to spike downwards occasionally.

### 2. Setting Up TradingView
- Open TradingView and ensure you have the Boom or Crash index loaded on your chart.

### 3. Drawing Trendlines
- **Identify Highs and Lows**: Start by identifying significant highs and lows on the chart.
- **Draw the Trendline**: Connect at least two significant highs for a downtrend line and at least two significant lows for an uptrend line.

### 4. Analyzing Trendline Breaks
- **Downtrend Breakout (Boom Index)**: Look for points where the price breaks above a downtrend line. This can indicate a potential upward boom.
- **Uptrend Breakout (Crash Index)**: Look for points where the price breaks below an uptrend line. This can indicate a potential downward crash.

### 5. Confirming the Breakout
- **Volume**: Higher volume during the breakout can confirm the validity of the trendline break.
- **Candlestick Patterns**: Look for reversal candlestick patterns near the trendline to increase the accuracy of your prediction.

### 6. Risk Management
- **Stop-Loss**: Set a stop-loss slightly below the breakout point for booms and slightly above for crashes.
- **Take-Profit**: Determine your target based on previous highs/lows or use a risk-reward ratio.

### Example:
1. **Boom Index**:
- Identify recent highs and draw a downtrend line.
- Wait for a candlestick to close above the trendline.
- Confirm with volume and possibly a bullish candlestick pattern.
- Enter a buy trade with a stop-loss below the trendline and a take-profit at a previous resistance level.

2. **Crash Index**:
- Identify recent lows and draw an uptrend line.
- Wait for a candlestick to close below the trendline.
- Confirm with volume and possibly a bearish candlestick pattern.
- Enter a sell trade with a stop-loss above the trendline and a take-profit at a previous support level.

By carefully analyzing trendlines and confirming breakouts with additional indicators, you can effectively catch booms and crashes on Deriv's Boom and Crash indices using TradingView.