Strategy for binary options helix
Why do trending strategies work?
- In order to fully understand how promising an invented and programmed trading system is, its necessary to check it on a backtest first.
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The trend was and remains the most profitable period of trading on any financial asset, especially for novice traders.
Reasons for trends In most cases, an impulse for a directed price movement up or down will be a fundamental event: a change in significant macroeconomic indicators or a political situation that directly affects the sphere of production and services.
One of the most significant indicators is the interest discount rates of central banks and the level of GDP. Their rise or fall causes changes in medium and long-term trends and it becomes possible to make money on the trend with minimal risk.
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The trend can also be entirely speculative based on rumors and inflated expectations, as happened with cryptocurrencies. The figure shows a sharp rise in the value of Bitcoin in December — Januaryassociated with the start of trading in the corresponding futures on the CME exchange.
When the initial excitement passed and gave way to common sense, the price just as sharply began to decline from a maximum of 20 thousand dollars to the current 4 thousand. Defining a trend The main problem of the trend, which does not have a clear solution, despite the two-century experience of exchange trading, is the determination of the strategy for binary options helix of its beginning, and most importantly, of the end.
If we add to this the price pullbacks and corrections that occur in the course of the movement, it will become obvious that this type of trading has a large share of subjectivity. The choice of the working timeframe is also of great importance, as can be seen from the example, where an intraday or medium-term trader identifies a flat, scalpers can work out well. You should also take into account average volatility, volume dynamics and other market factors.
Trade trend line breakouts Despite the listed problems, trend strategies are quite simple and not difficult for beginners. Opening positions on trend line breakouts. Trend lines are drawn at at least two recent local highs for a downtrend and lows for an upward movement.
But even without additional confirmation, the strategy gives sufficiently reliable signals to get a positive final result. Search for:.