2 use a binary options trading strategy!
The strategy is a simple system based on a 2 use a binary options trading strategy! point chart pattern. When looking at a downward pattern, the 1 would be at the highest and for a up, 1 would be at the lowest based on the swing in the pattern. See the diagrams below for more information. Usually the down trend comes up after a trend that was moving upwards. The up pattern appears after a downward trend. You only enter the market when the resistance or support of point number 2 is broken.
The up pattern is not valid if the point number 3 is at a point lower than 1. The same with the down pattern, point 3 should not be higher than the point 1 for it to be valid.
The strategy cannot be applied correctly if point 3 is at a higher level on the up cycle or lower on the down cycle. To stay safe when using this strategy you need to ensure that you stick to this specific point 2 use a binary options trading strategy! not enter the market at this point. This strategy relies on reversal patterns so you need to stick to this one specific rule.
This strategy is a little harder for amateurs to grasp, but once the strategy and the highs and lows are understood, the application of the strategy becomes a lot simpler. This particular strategy has been around for many years and is 2 use a binary options trading strategy! reliably by traders of Forex, equities and stocks alike.
This is a strategy based on price action and the resistance and support principles are clearly laid out. Although this is particularly used as a reversal strategy, it can be used with tends in a normal way as well.
In diagram 2, you can see the lows and highs are numbered, the new trend is downward and there have been a number of successful Put opportunities. Whenever the support at point 2 is broken, the market is entered and all trades are taken going with the trend. There is protection from bad trades by making sure that point 2 is broken on the lowest point, if not, this would be a losing trade. To use this strategy requires software that can provide accurate charting. To give an example of how this strategy can be used, we will take a down pattern to work with.
The opposite would apply for an up pattern. When there has been a strong move upwards, you can start looking for the pattern to start to form. Start off with the first peak which is the top of the trend if the strategy works out. Should the price continue to increase, you would need to mark the newer high point as point 1. We should see a counter move start and the lowest point of the move can be marked as number 2. If the new move shows up higher than the original point 1, then this strategy will not work for this specific trend.
If the new point is not higher than the previous point 1 and the move appears to be downwards, mark the highest point of the latest move as number 2.
This completes the pattern but remember to stick to the rule. The price must move low enough to break the point that was set as number 2, which was the lowest point previously. This means that we can enter a trade by choosing Put as we have met the strategy conditions. See images below for more information:. This 2 use a binary options trading strategy! strategy has a high success rate as it can help avoid bad trades as well as giving good indicators of potential good trades.
This is not a fail-safe method as the changes in the market can sometimes be unpredictable and you can end up with some false positives, but overall, this specific strategy has a good chance of earning some good profits if applied correctly. Your email address will 2 use a binary options trading strategy!
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Here are 3 different strategies that I use, choose one based on your risk appetite. This strategy is for those who are new to this game and want to build up their capital slow and steady. The point of this strategy is to minimize risk and wait for the perfect setup on the chart. Draw your fibo from point 1 to point 2 for a down trend, and vice versa for an 2 use a binary options trading strategy!. Your target is In order for the signal to be fully valid, there has to be a retracement to between 50 — Higher the retracement goes, stronger the signal.
In the example above, the retracement happens next to the number 2 in the up left corner. And money management suggestion for this strategy 2 use a binary options trading strategy! to take 2 equal bids per day for 20 days. If you lose, start with the last set of bids:. You should reach around 5k in profits within 20 days, and next month just start over or carry on from where you left. The semi conservative strategy involves trades per day. The rules are the same as for the conservative strategy, only with one exception: We take the 2 use a binary options trading strategy!
at Fibonacci projection level as well as Now, for level trades, 2 use a binary options trading strategy! would advise not to take the trade with more than 6 minutes to the expiry. Use the same money management as with conservative strategy, but your earnings will increase faster. Now, the below strategy is a very aggressive one that defines the means of sane trading. This strategy represents the use of price cycles and Fibonacci sequence in fast trading.
Trades are not only taken at levels and And Fibonacci levels are drawn for every cycle. This strategy also exploit the full potential of value charts.
2 use a binary options trading strategy! you learnt what you are hunting, where to find your prey, and how to bag some prey steady and safe.
Now, we will go after the BIG 5. Now, change your zigzag indicator parameters to 2,1,1. How many short-term price cycles do you see now? Each of these cycles is a Fibonacci sequence with a high-low-retracement-projection-reverse. Look at the chart below:. Within each price cycle between 3 points there are on average 3 ITM trade setups during normal volatility trading conditions. This strategy will produce around setups per currency pair per day, so use it wisely, and be very sure to learn it by heart before you jump in full steam.
The 3 strategies explained here work for all currency pairs, commodities, stocks and indices. However, even with the conservative strategy, a trader can produce excellent results if they trade assets, and take 2 high probability trades per asset per day.
Click here to read my next and last post in this mini series. Conservative Long-term Strategy This strategy is for those who are new to this game and want to build up their capital slow and steady. They key here is to be patient until all 3 factors line up. The entry rule is: And your target is trades per day.
If you lose, start with the last set of bids: The rules for entry are the same as with the conservative strategy: And remember, You have to stick with the entry rules. Aggressive Strategy Look at the chart below, how many price cycles do you see? Look at the chart below: Now it gets complicated and wonderful: The Fibonacci is drawn between points 1 and 2 in light blue and marked on value charts the last high and low, 1 and 2 respectively.
Now we have the levels and wait for the retracement which can be a wick, or a full candle. Above the retracement area is the white box marked by 3, and the green candle underneath touches that box. The setup is ready when the retracement candle is followed by a red candle in the direction of the trend. This is marked by the light blue rectangle.
So this is our first breakout candle of this specific sequence. This is marked by 3 PUT on the chart above. We enter PUT 10 seconds before the close of this candle because it will be followed by a bearish candle, or bearish candles which will reach level Fibonacci level This trade is represented on the chart by 1 PUT.
The last bearish candle hits Fibonacci level As usual leave comment below if you have any questions. Click here to read my next and last post in this mini series Further reading: Trading Binaries with the Fibonacci Tool.