Digit Trading on Deriv: Understanding the Over/Under Market and the Role of Green and Red Bars
1. What is Digit Trading?
In digit trading, your goal is to predict the last digit of a market price movement, specifically the last decimal. You're making a bet on whether that final digit will be:
Over a certain number (e.g., "Over 5" means the last digit will be 6, 7, 8, or 9).
Under a certain number (e.g., "Under 5" means the last digit will be 0, 1, 2, 3, or 4).
2. Role of the Green and Red Bars
On the Deriv platform, green and red bars provide visual cues about market conditions, helping you assess trends and predict outcomes for your trades.
Green Bar on the Left (◀️):
If the green bar is positioned to the left of the red bar, this signals an "Under" market.
You can trade under a number, predicting the last digit will be lower.
Example: Trading "Under 6" means you're betting the last digit will be 0, 1, 2, 3, 4, or 5.
Green Bar on the Right (▶️):
When the green bar is to the right of the red bar, it signals an "Over" market.
You can trade over a number, predicting the last digit will be higher.
Example: Trading "Over 3" means you're betting the last digit will be 4, 5, 6, 7, 8, or 9.
3. Why Bar Positions Matter
Green Bar on the Left: This indicates the market favors lower digits (under), meaning there's a higher chance the last digit will be lower than certain thresholds.
Green Bar on the Right: This shows the market favors higher digits (over), increasing the likelihood that the last digit will be above a certain number.
4. How to Use This Information in Your Trades
When the green bar is on the left, you should consider trading "Under" digits like 4, 5, 6, 7, 8, or 9 because the market suggests lower digits may be more frequent.
When the green bar is on the right, you can trade "Over" for digits like 0, 1, 2, 3, 4, 5, or 6, as the market signals higher digits are likely.
5. Key Considerations
Volatility: While green and red bars provide useful visual cues, digit trading is still largely based on chance. These bars hint at market trends but don't guarantee outcomes.
Market Analysis: Always complement your strategy by considering other factors such as volatility indices and broader market trends to make informed predictions.
In summary, the green and red bars on Deriv act as visual tools, helping you interpret whether the market favors higher (over) or lower (under) digits, allowing you to make better-informed digit trading decisions.
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