How to Trade Synthetic Indices A Comprehensive Guide for Beginners.
What are Synthetic Indices?
Trading that is not affected by the time of the day or global events is what synthetic indices have to offer. Synthetic indices, therefore, are trading instruments that are designed to simulate the behavior but real-world financial markets.
This means that synthetic indices behave like real-world markets but their movement is not as a result of any underlying financial asset. For instance, the forex and stock markets move in respect to the price movement of the currency pair and stock respectively, but with synthetic indices, things are different A key feature of these synthetic indices is that they are not affected by fundamentals like world events or news. Synthetic indices are available to trade 24/7, have constant volatility, fixed generation intervals, and are free of market and liquidity risks.
Order Block Trading Strategy
Order Block, otherwise abbreviated as OB, is a zone identified by a candle, where it is believed
that banks and large institutions have accumulated their orders.
So, OB can be a down candle before the move up or up candle before the move down.
When trading OBs, it’s important to consider the location of the OB you want to trade. Not all
OBs are tradable.
Some of the common factors you can consider for high probability OB includes;
● Trend (Order Flow)
● Imbalance
● Support & Resistance
● Flip Zone
● Supply & Demand
● Significant Support & Resistance Level etc
● Market Structure Break
● Manipulation
● Liquidity Raid (Stops Hunt)
