Exploring the Boom and Crash Index and Understanding Its Key Features

Dennis Buchholz

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Exploring the Boom and Crash Index and Understanding Its Key Features

Trading Boom and Crash Indices with Agimat FX iQ

A complete guide on how to trade Boom and Crash Indices with Agimat FX iQ.

Have you ever heard of the Boom and Crash Index? It’s a popular trading instrument that has been gaining traction in recent years, thanks to its unique features and potential for high returns. But what exactly is it, and how does it work?

If you want to use Agimat FX iQ trading the synthetic indices, then you must take time to read this blog post.

We’ll take a deep dive into the world of the Boom and Crash Index, exploring its key features, benefits, and risks. Boom and Crash are highly volatile Synthetic Indices available only with the broker Deriv.

Synthetic indices – what are they?

The Boom and Crash Index is a financial tool that was created to help investors identify and predict market bubbles. It does this by tracking the price of assets across different asset classes, including stocks, commodities, real estate, and government bonds.

The index was developed by a team of economists at the University of Zurich, and it has been used successfully to predict several major market crashes, including the dot-com bubble of the late 1990s and the housing market crash of 2008.

Unlike real market movements, synthetic indices are not affected by fundamentals. They have a unique movement pattern based solely on technicals.

This makes it difficult to manipulate the movement pattern of these indices, as they are automated and based on randomly generated numbers generated by a programmed third party.

The Boom and Crash Index has the following important features.

There are many differences between the Boom and Crash Indices and the rest of the forex and commodity pairs traded today. Since they are not pegged to any currency, they cannot be influenced by any fundamental factors.

Again, trading Boom and Crash is based solely on price actions and technical analysis.

The Boom index is marked by a sudden spike due to price rejection at the lower region (support), landing it at the next resistance. This is an interesting feature of Boom and Crash. A spike like this can cover 50 pip at a time.

A crash index is a sudden downward movement caused by rejection at the higher region (Resistance) that leads to the price landing at the next support or midway between them.

Agimat FX iQ’s Future Prediction is able to detect those sudden spikes in advance. You pause you trading until you have a ready-t0-go signal again after the spikes. Agimat FX iQ is able to trade the bullish or bearish trend on M1 only, not the spikes!

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Agimat FX iQ MetaTrader5 Version

Boom and Crash index Indicator

When interpreting the Boom and Crash Index, it is important to keep in mind that asset prices do not always move in perfect cycles.

There may be times when the index produces false signals, so it is important to use Agimat FX iQ to confirm any signals generated by the Boom and Crash Index.

How to set your Lot Size, TP and SL trading Boom and Crash indices?

Boom and Crash trading sets itself apart from other Forex pairs in the market due to its own guiding principles. The permitted lot size for Boom & Crash indices is 0.20 – 50 with each lot size equating to a dollar value of 1.

This means that when your lot size is 1, you will gain or lose $1 for every pip movement in the market, and if your lot size is 10 then you will make $10 for every 10pips movement.

Do brokers manipulate the Boom and Crash Indices?

Most traders tend to lose money while trading this pair, which has led to accusations that the broker manipulates these instruments against the traders.

Many traders claim that the broker who offers this pair tries to set the market against them based on the highest position taken by the traders.

Fortunately, my research has shown that this is not the case. My strongest discovery is that booms and crashes are programmed and largely dependent on price actions.

How can Boom and Crash Indices be traded for profit?

The best way to make profits from trading Boom and Crash is using Agimat FX iQ and understand the price actions. The concept of “price actions” shows the trader how the market has reacted in the past in certain regions.

If the market revisits this point in the future, we can predict how the market might react. Using price action, we can identify support and resistance zones where the market has spiked or dropped significantly.

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