Short Signals

The six short-signal strategies

Every short signal comes from one of six fixed technical rules. The bot reads one-minute candles of Pocket Option OTC markets and only publishes on a market with at least 40 consecutive candles. Each rule is tracked separately, on its own durations.

Three rules look for a return towards the average after an excess (stochastic, RSI reversal, bands). Three follow a move that has started (MACD crossover, breakout, moving averages). The two families are built for different market conditions.

Stochastic

Returns towards the average1 or 2 minutes

The stochastic oscillator shows where the last close sits within the range of the last 14 minutes: 0 at the lowest point, 100 at the highest. A second line smooths it over 3 minutes.

The rule: Up signal: the oscillator is below 20 (oversold) and its fast line crosses above the slow line. Down signal: above 80 (overbought), and the fast line crosses below.

It reacts faster than the RSI, which is why it is used for the shortest durations.

RSI reversal

Returns towards the average2 or 5 minutes

The RSI (14 minutes) compares the strength of recent rises with recent falls. The rule waits for two things: the RSI touched an extreme zone in the last 6 minutes, and the MACD now turns the other way.

The rule: Up signal: RSI at 35 or below, then the MACD crosses upwards while the 10-minute average rises. Down signal: RSI at 65 or above, then the MACD crosses downwards.

It looks for the turn after an excess, not the excess itself.

MACD crossover

Follows the move5 or 10 minutes

The MACD measures the gap between a fast (12) and a slow (26) exponential average; its signal line is a 9-period average of that gap.

The rule: Up signal: the MACD crosses above its signal line while the 30-minute average is flat or rising. Down signal: it crosses below while the 30-minute average is flat or falling.

It follows a move that is starting, only in the direction of the underlying trend.

Bands

Returns towards the average5 or 15 minutes

Bollinger bands are drawn two standard deviations above and below the 20-minute average.

The rule: Up signal: the price was on or below the lower band and comes back inside. Down signal: it was on or above the upper band and comes back inside.

The idea is a return towards the average after the price stretched too far.

Breakout

Follows the move10 or 20 minutes

The rule watches the highest and lowest points of the previous 20 minutes.

The rule: Up signal: the price closes above the 20-minute high, after being below it. Down signal: it closes below the 20-minute low.

Unlike the return rules, it assumes the move goes on once the range breaks.

Moving averages

Follows the move30 or 60 minutes

The rule compares the average price of the last 10 minutes with the average of the last 30 minutes.

The rule: Up signal: the 10-minute average crosses above the 30-minute one. Down signal: it crosses below.

A slow rule, so it is used for the longest durations.

How a signal is scored

The entry is the start of the minute shown, 2 to 3 minutes after publication. A signal is in the right direction when the price at the opening of the expiry minute is above (up) or below (down) the price at the opening of the entry minute. An unchanged price counts as no change: the amount is returned. A signal already in progress has missed its entry: do not take it late.

Risk warning Signals are the output of fixed technical rules, not advice and not a promise of results. OTC prices are set by the platform and can differ from the real market. Each trade can lose its whole amount: only use money you can afford to lose. Read the full Risk Disclosure.

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