Rewritten and fact-checked by the BeCoin editorial team, 23 October 2026.
Short answer: a Pocket Option trend strategy only makes sense if "trend" is defined by rules you can check on the chart, not by feel. Use three tests: price makes higher highs and higher lows (or the reverse), the 50-period moving average slopes clearly, and ADX(14) is above 25. Trade only when all three agree, enter on a pullback, and set the expiry to 3–5 candles of your chart timeframe. Even then, you must win more than about 54% of trades at an 85% payout just to break even. On two years of EUR/USD data, a simple slope rule said "no trend, skip" on 46% of days.
This guide goes deeper on trend trading only. For four different setups and the full break-even table, see our Pocket Option strategy guide.
How to define a trend objectively
Most trend guides say "trade with the trend" and stop there. The problem is that almost any chart looks like a trend if you zoom in far enough. A rule must give the same answer whoever reads the chart. We use three tests. Each one checks something different, so they do not simply repeat each other.
| Test | What it measures | Up-trend passes when | Down-trend passes when |
|---|---|---|---|
| 1. Structure | Direction of swings | The last two swing highs and the last two swing lows are each higher than the one before | The last two swing highs and lows are each lower |
| 2. Slope | Direction and steepness of the average | 50-period MA now minus the MA 10 candles ago is greater than one ATR(14) | The same difference is below minus one ATR(14) |
| 3. Strength | How directional the movement is, without direction | ADX(14) above 25 and not falling | ADX(14) above 25 and not falling |
Test 1: higher highs and higher lows, made precise
A "swing high" needs a definition, or you will see one wherever you want to. A common one: a candle whose high is higher than the highs of the two candles on each side. A swing low is the mirror image. Pocket Option lists a Fractal indicator; the standard (Bill Williams) version marks exactly these five-candle points, so you do not have to judge them by eye. Check its setting when you add it.
An up-trend means the latest swing high is above the previous swing high and the latest swing low is above the previous swing low. If only one of the two is true, the structure is mixed and the test fails.
Test 2: moving-average slope, measured against volatility
"Price above the 50 EMA" is not enough. In a sideways market price crosses a flat average again and again. What matters is whether the average itself is moving. To make "moving" a number, compare its change with the normal size of a candle:
Slope test = (MA50 now − MA50 ten candles ago) ÷ ATR(14)
A value above +1 means the average has moved more than one typical candle range in ten candles: an up-slope. Below −1 is a down-slope. Anything in between is flat, and flat means no trade. The threshold of 1 is a choice, not a law. A higher threshold gives fewer, cleaner signals; a lower one gives more trades and more noise. Pick one, write it down, and do not change it during a test.
To read it on the chart, hover the crosshair over the current candle and the candle ten bars back, note the two MA values, and compare the difference with the ATR(14) reading.
Test 3: ADX above 25
ADX (Average Directional Index) was published by J. Welles Wilder in 1978. It measures how directional price movement has been over the last 14 periods on a scale of 0 to 100. It does not say up or down. The usual conventions are: under 20, weak or no trend; above 25, a trend is present. These are rules of thumb, not tested guarantees, and ADX lags because it is an average of an average.
Two practical points. First, a falling ADX above 25 often means the trend is fading, so require ADX to be flat or rising. Second, use the slope test for direction. If your ADX panel also shows the +DI and −DI lines, +DI above −DI should agree with an up-trend. Our ADX guide covers the calculation in more detail.
Which trend indicators Pocket Option's chart offers
Pocket Option's own blog says the platform offers "30+ technical trading indicators" and that "a maximum of 30 indicators can be applied across all charts". It says the Indicators menu sits at the upper left of the trading screen, next to the chart type selector, and that you can star an indicator to add it to Favourites. The table below lists the trend-relevant ones it names, and what each is good for in this strategy.
| Indicator | Role in this strategy | Use it for |
|---|---|---|
| Moving Average | Core (Test 2) | Slope of the 50-period average; pullback target |
| ADX | Core (Test 3) | Trend strength filter: trade only above 25 |
| Average True Range (ATR) | Core (Test 2) | Scales the slope test to current volatility |
| Fractal | Core (Test 1) | Marks swing highs and lows objectively |
| ZigZag | Optional | Shows swing structure; note that its last leg can redraw |
| Parabolic SAR, SuperTrend | Optional | Visual trailing direction; both flip often in ranges |
| MACD, RSI | Optional | Momentum check; RSI holding above 50 supports an up-trend |
| Ichimoku Kinko Hyo, Alligator, Aroon, Vortex | Not needed | Alternative trend systems; adding them mostly repeats the same information |
Pocket Option does not publish the default settings of each indicator in those pages, so check the period on every indicator you add. The rules here assume MA(50), ATR(14) and ADX(14). More indicators do not make a trend more certain. Most trend indicators are built from the same closing prices, so five of them agreeing is closer to one opinion repeated than to five independent votes.
What the filter looks like on real EUR/USD data
To show how often a strict rule says "skip", we applied the slope test to two years of public EUR/USD data. The source is the Federal Reserve's daily noon buying rate (FRED series DEXUSEU), 1 October 2024 to 16 October 2026, 511 trading days. That series has closing rates only, so ATR is replaced by the 14-day average absolute daily change. It is not Pocket Option's quote feed, and daily candles are much slower than the charts most Pocket Option traders use, but the logic of the filter is the same on any timeframe.
Three things stand out:
- Nearly half the days failed the test. A trend strategy that follows its own rules spends a lot of time not trading.
- Whipsaws cluster in the flat periods. Price crossed its 50-day average 33 times in the period. 21 of those crossings happened on no-trend days, even though no-trend days were under half of the sample.
- The filter is late. The big rise of spring 2025 was only confirmed after it had started. Every trend filter trades early profit for fewer false signals.
This is an illustration of the filter, not a backtest of trades. It says nothing about whether a 3-minute trade on any of those days would have won.
Entry and skip rules
Once all three tests pass, the trend tells you the direction. It does not tell you when to enter. Entering after a long, one-sided run means buying at the point where a pause is most likely. Wait for a pullback.
- Check the higher timeframe. Run the three tests one timeframe up (for a 1-minute chart, the 5-minute chart). If it fails there, stop.
- Run the three tests on your trading chart. All three must agree with the higher timeframe.
- Wait for a pullback to the 50-period average or to the most recent swing low (up-trend) or swing high (down-trend). The pullback must not close beyond that swing point, or the structure test fails.
- Enter on the first candle that closes back in the trend direction. Up-trend: Call. Down-trend: Put.
- Set the expiry using the table in the next section, and the stake using your fixed percentage.
| Condition | Why it matters |
|---|---|
| Slope test between −1 and +1 | The average is flat; most crossings in our sample happened in this state |
| ADX under 25, or above 25 but falling for 3+ candles | Directional movement is weak or fading |
| Price crossed the 50-period average 3 or more times in the last 20 candles | The market is ranging, whatever the indicators say now |
| The candle before entry is more than 2 × ATR(14) long | You would be entering after a spike, not a pullback |
| Higher timeframe disagrees | Your short trend may be a pullback in the bigger one |
| High-impact release due in the next 15 minutes | News can override any trend; check an economic calendar |
| Payout on the ticket is lower than usual | A lower payout raises the win rate you need |
| You have hit your daily loss limit | The rule is the rule |
Trading against a confirmed trend is a different method with different risks; we compare the two in trend vs countertrend trading.
How to choose the expiry for a trend trade
A 50-period average on a 1-minute chart describes the last 50 minutes. A 1-minute expiry on that signal asks the market to move your way within a single candle the indicator has not seen yet. That is mostly noise. Match the expiry to the chart, not to your patience: about 3–5 candles of the timeframe you trade.
| Trading chart | Check the trend on | Expiry (3–5 candles) | What the MA(50) covers |
|---|---|---|---|
| 1 minute | 5 minutes | 3–5 minutes | 50 minutes |
| 5 minutes | 15 or 30 minutes | 15–25 minutes | about 4 hours |
| 15 minutes | 1 hour | 45–75 minutes | 12.5 hours |
If the ticket does not offer an expiry in that range for your asset, use a smaller chart timeframe rather than a mismatched expiry. Two more rules: do not use an expiry shorter than one candle of your trading chart, and do not extend the expiry far beyond five candles hoping the trend will "come back". Longer expiries also give more time for the trend to end.
The break-even requirement and losing streaks
A fixed-time trade loses the whole stake when wrong and pays only the payout percentage when right. So a trend filter has to do more than pick the right direction often. It has to pick it often enough to beat this line:
Break-even win rate = 1 ÷ (1 + payout)
At an 85% payout that is 1 ÷ 1.85 = 54.1%. At 80% it is 55.6%; at 92% it is 52.1%. The full table is in our strategy guide. A filter that skips half the market does not change this number; it only changes how many chances you get to beat it.
Losing streaks are where trend traders break their own rules. Even a strategy above break-even will produce long runs of losses, as the chart shows.
| Streak | 52% win rate | 55% win rate | 60% win rate |
|---|---|---|---|
| 4+ losses | 95.5% | 91.5% | 80.1% |
| 5+ losses | 75.0% | 64.7% | 45.9% |
| 6+ losses | 47.1% | 36.3% | 21.2% |
| 8+ losses | 13.0% | 8.4% | 3.6% |
With a fixed stake of 2% of a $200 account ($4), six losses in a row cost $24, or 12% of the account. That hurts but is survivable. With martingale (doubling after each loss from $4), the same six losses cost $4 + $8 + $16 + $32 + $64 + $128 = $252, more than the whole account. Set the stake with the position size calculator and keep it fixed. Fixed-time trades have no stop-loss: the stake is the maximum loss and the expiry is the exit.
For why a high win rate alone proves little, read why win rate alone doesn't matter and expectancy in binary trading.
How to test the rules before risking money
- Write the rules down: the three tests with their numbers, the entry trigger, the skip list, the expiry and the stake.
- Run at least 100 demo trades without changing a rule. Pocket Option's demo account uses virtual money. You can also practise on historical candles in the trading simulator.
- Log every trade and every skip in the trading journal: asset, time, slope value, ADX, expiry, payout and result. Logging skips shows whether the filter removed losers or just removed trades.
- Compare your win rate with the break-even rate for the payouts you actually got. A result of 56% over 100 trades at an 85% payout is not yet proof of an edge; the margin of error at that sample size is about ±10 percentage points.
Demo trades fill instantly and carry no emotion, so live results are usually worse.
Is Pocket Option regulated?
Pocket Option does not name a financial regulator on its public site. Here is what official sources say, checked on 20 October 2026:
| Authority | What it says | Date |
|---|---|---|
| UK Financial Conduct Authority | "This firm may be providing or promoting financial services or products without our permission. You should avoid dealing with this firm and beware of scams." Lists pocketoption.com, potrade.com and an address in Castries, Saint Lucia. | First published 29 Sep 2021, updated 10 Feb 2026 |
| CONSOB (Italy) | Asked Google to remove the "Pocket Option" Android app, linked to Po Trade Ltd, from the Italian market. | 26 Feb 2026 |
| ESMA (EU) | Prohibited the marketing, distribution and sale of binary options to retail clients, citing their "structural expected negative return". | Agreed 23 Mar 2018 |
Pocket Option's site says it does not serve residents of the EEA, USA, Israel, UK, Philippines, Japan or Brazil. Check your own country's regulator before opening any account. Our Pocket Option broker page has account details, and our methodology explains how we review brokers.
FAQ
What is the best trend indicator on Pocket Option?
No single indicator defines a trend. A moving average gives direction, ADX gives strength and Fractal marks swing structure. Using one from each group is more useful than stacking several moving-average-based indicators.
What ADX value means a strong trend?
By convention, ADX(14) above 25 signals a trend and below 20 signals a weak or absent one. Treat 20–25 as "no trade". These levels are conventions from Wilder's work, not guarantees.
What is the best timeframe for trend trading on Pocket Option?
There is no best one, but slower charts show cleaner trends. Whatever you pick, confirm the trend one timeframe higher and set the expiry to 3–5 candles of your trading chart.
What expiry should I use for a trend trade?
About 3–5 candles of the chart you trade: 3–5 minutes on a 1-minute chart, 15–25 minutes on a 5-minute chart. Never use an expiry shorter than one candle.
Does trend trading work on Pocket Option?
No published, independent data shows that it does. Whether it works for you depends on whether your logged win rate stays above 1 ÷ (1 + payout) over a large sample. Most traders do not reach that.
Can I trade trends with price action only?
Yes. Test 1 (higher highs and higher lows) is pure price action. The slope and ADX tests add a number that is harder to argue with when you want to take a trade.
How many indicators can I add on Pocket Option?
Pocket Option's blog says up to 30 indicators can be applied across all charts. Three or four is plenty for this strategy.
Bottom line
A trend strategy on Pocket Option is a filter, not a forecast. Define the trend with three checkable tests, enter only on pullbacks, match the expiry to 3–5 candles, and expect to skip about half the time. Then measure: if 100 logged trades do not beat the break-even rate for your payouts, the filter has no edge yet, and that is worth knowing before it costs money.
