# Boom and Crash Scalping Strategy

**URL:** <https://community.deriv.com/t/boom-and-crash-scalping-strategy/87828>\
**Category:** General Discussion\
**Tags:** derivgo, mt5, mobileapp\
**Created:** [January 23, 2025, 6:09pm UTC](https://community.deriv.com/t/boom-and-crash-scalping-strategy/87828 "2025-01-23T18:09:40Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![aguador-abortee-2](https://avatars.discourse-cdn.com/v4/letter/a/5f8ce5/32.png) [@aguador-abortee-2](https://community.deriv.com/u/aguador-abortee-2)\
**Post date:** [January 23, 2025, 6:09pm UTC](https://community.deriv.com/t/boom-and-crash-scalping-strategy/87828/1 "2025-01-23T18:09:40Z")

</div>

### **Boom and Crash Scalping Strategy**

This strategy focuses on trading based on trends and spike patterns.

#### **Setup:**

1. **Timeframe:** Use the 1-minute (M1) timeframe for quick entries.
2. **Indicators:**

- **Moving Average (MA):**
  - Apply a 200 EMA (Exponential Moving Average) to identify the trend.

- **Relative Strength Index (RSI):**
  - Period: 14.
  - Levels: 70 (overbought) and 30 (oversold).

- **MACD (Optional):**
  - Settings: Fast EMA = 12, Slow EMA = 26, Signal = 9.

* * *

#### **Entry Rules:**

**For Boom (Buy):**

- **Trend Confirmation:**
  - The price should be above the 200 EMA (indicating an uptrend).

- **Oversold Condition:**
  - RSI should be below 30 (oversold zone).

- **Spike Anticipation:**
  - Wait for one or two small bearish candles, signaling a possible reversal.

- **Buy Entry:**
  - Place a buy after spotting a small pullback or a flat consolidation area.

- **Stop Loss:**
  - 5-10 points below the recent low.

- **Take Profit:**
  - Exit after the first or second spike.

**For Crash (Sell):**

- **Trend Confirmation:**
  - The price should be below the 200 EMA (indicating a downtrend).

- **Overbought Condition:**
  - RSI should be above 70 (overbought zone).

- **Spike Anticipation:**
  - Wait for small bullish candles signaling a reversal.

- **Sell Entry:**
  - Place a sell after spotting a small pullback or flat consolidation area.

- **Stop Loss:**
  - 5-10 points above the recent high.

- **Take Profit:**
  - Exit after the first or second spike.

* * *

#### **Risk Management:**

- Use a risk-to-reward ratio of at least **1:2**.
- Risk no more than **2% of your account** per trade.
- Use proper lot sizes based on your account balance.

* * *

#### **Additional Tips:**

1. **Avoid Trading Against the Trend:**

- Spikes in Boom indices are usually upward, while spikes in Crash indices are downward.

1. **Wait for Confirmations:**

- Patience is key. Avoid entering randomly without confirmations.

1. **Test in Demo First:**

- Backtest your strategy in a demo account to understand its strengths and weaknesses.

1. **Don’t Overtrade:**

- Limit your trades to 3-5 per session to avoid emotional trading.

* * *

Let me know if you’d like or more guide @vixstratgy telegram