Simple Binary Options Trading Strategy
Overview:
The methodology, which is employed by me in binary trading, involves off-price move, full numbers, Fibonacci pivot lines, and Fibonacci levels that are applied in a daily regime. My 60 second binary strategy includes chart analysis, which is used in order to identify the moments of pricing reversal. Only three types of indicators are presented on the chart. These are 200 EMA, Price Chart, and 62 EMA. Although the indicators are not the single factors, which my decisions are based on, I apply them as the helping factors that have a considerable impact on trading.
Value Action:
There is one false stereotype about pricing action, according to which the latter totally relies on candlesticks and their formations. This can not be true since, in this case, the type of trading would have been named candlestick action. One has to note that sticks, as well as formations they build, are nothing else than byproducts of pricing actions. Thus, one can sustain a huge range of OTM trading acts if the trade is started at the moment of hammerhead candle formation. Still, there is a possibility to make ITM trades if you begin acting at the lower part of the wick. The disadvantage of candlestick application is that a different stick must be chosen for specific timeframes, which may be a problem for traders, who trade in different periods. The same disadvantage is applicable to indicators. Concerning pricing, it remains the same anytime. Why is, actually, a price action employed? Its main aim is distinguishing a moment, in which the biggest number of buyers and sellers is going to enter trading.
Round Numbers:
In my trading, I employ SweetSpots.mq4 on charting. It is the instance of the efficient round number indicator. It is typical to disregard the employment of whole numbers (for instance, 1.3100 for EUR/USD and 96.00 for USD/JPY),which may be a big failure since the latter serve the function of support & resistance levels. Since the levels draw many orders, approaching the levels means countering the value moves by the flows. Typically, this process is followed by retracements. The example that is given below shows that in case a trader picks up trades from every whole number touch (on our chart – 1.49000 on the currency pair of GBP/USD),he gets into 12/14 ITM position.
Fibonacci Levels:
The Fibonacci levels have the recognition of efficient support/resistance areas since a long time. In my trading, I prefer using the Fibonacci indicator in daily regime. Accordingly, fib levels are derived from the high/low indicators of a preceding day. Due to my personal observations, the most optimal daily fibs embrace the 0.0 as a low, 100.0 as a high, 61.8, and 161.8. It means that in case the mentioned levels are approached, one should expect a reversal. Sometimes, I also employ the drawing instrument of Fibonacci, which has to be installed on the distance between a high and a low that stem from the previous day. In this case, the trades from such levels as 50.0, 61.8, 127.3, and 161.8 are taken. This move I recommend to make if a conflation is identified. As the image reveals, the value strikes on the 161.8 level and reaches the 161.8 fib line on the basis of the last low/high prices. Accordingly, the act is a distinct ITM.
Fibonacci Pivot Indicators
The Fibonacci Pivot tools serve the purpose of predetermining support/resistance and direction moves. The points are typically employed by me as the domains of reversal, as well as the instruments of price movement predicting. In case the value reaches the point higher than pivot position, R1 is tested as the resistance level. If the R1 line is broken, it becomes perfectly clear that the value gets into the powerful uptrend position. The moment of R1 breakage entails the subsequent retesting with “call” option purchasing. Afterward, when the R1 line is reached, a trader is recommend to take a “put” option. Accordingly, as R2 is broken, a “call” is traded on a retest and the R3 breakage implies “put” option application. The pattern works just in the same way for downtrends. The only difference are the indicators involved (S1, S2, S3). It is critical to make sure that the treated trades relate to the confluence-based levels. It enhances the chances for the trades having ITM character. If you analyze the chart below, you will notice that the green-colored level (R1) is broken. It implies that the trade becomes ITM on a retest. After a short downfall, the value broke R1 again. At this time, however, a supporting retest never happened. If after the R2 breakage a “put” option was taken, the trade would have been ITM. Since the option broke past, a “call” option on retest was taken in order for it to become ITM. Afterward, the value went up to the red line (R3). In order for the trade to become ITM this time, a “put” option must be bought. The chart demonstrates that R2 become a solid supporting basement as R3 got broken. Thus, if a trader would decide picking a “call” option on each move, the ITM part would equal 9/10.
How to unite all tips into one successful strategy?
A trader may reach success in trading only if he manages to adopt all recommendations to his style of marketing. Although the process may be time-consuming at first, if you get a strong grasp of it, it becomes quite easy reading the charts for you. Moreover, it must be noted that hurrying up to open a trade is always damaging. Wait until the prices reach the respective levels. It is also important preventing yourself from getting into a trade when the pricing has already made a reversal. Do not panic, there are still many chances for winning. To sum it up, the golden rules is: instead of chasing a value, try to catch it at the point you want it to land in.
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