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How binary options really work. Types of strategies and techniques for binary options based on market analysis A working strategy for trading binary negative theta in options. Types of strategies and techniques for binary options based on market analysis We recommend that you familiarize yourself with it.
Attention is paid to all types of TS: indicator, based on graphical analysis, candlestick patterns, they have one thing in common - you can earn money with them. Universal trading strategy We call it universal because it: does not become obsolete over time; suitable for all markets, not only for BO, but also for forex, stock market; has no restrictions on working time intervals.
This working strategy for binary options uses: trend lines; MACD with standard parameters for finding divergences. It can include other analytical tools, for example, Fibonacci levels, Stochastic, etc. A reversal candlestick pattern should form - this is the minimum set of conditions for entering the market; if it is accompanied by divergence on MACD, you can increase the rate, the signal gets more power.
Therefore, the expiration period is chosen equal to candles. Remember - the higher the timeframe, the more reliable the signal is. In the screenshot above, the long shadow above the candlestick that has touched the resistance level gives grounds for buying a Put option. There is no divergence on MACD, so the standard lot should be used. The next example shows a chewing trading and all the nuances of binary options situation, but in it the bets were made on growth i. The reason for entering into a deal is when the price touches the trend line, and a long shadow at the bottom of the signal candle.
But much depends on the trader's ability to filter signals, on his experience. This is the main drawback of the trading system - a fair amount of subjectivity. Indicator trend strategy The following trading system is suitable only for those who have a lot of free time. The work will be conducted on 5-minute charts with a fixed expiration of 3 candles.
Green indicates the strength of bulls, red indicates a falling market; BBTrigger - looks very much like a Stochastic, the oscillator is used as a filter. You need to add level 0 to it, parameters - 2, 10, 5, 3.
Indicator trend strategy
To bet on a fall, you need the DeltaTrend histograms to be red, and a confident zero line crossing appears on the BBTrigger. For growth bets, the rules are reversed. If one of the lines of the BBTrigger indicator almost merges with the zero level, it is not considered a cross and the option is not bought. This vehicle only suitable for BO Often, after a signal occurs, the price moves only a few pips by the time the expiration period expires.
For BO this is enough, for Forex - no, you will lose more on the spread.
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Sidus Method The trading system is completely based on moving averages. Are used: linear weighted movings with periods of 5 and 8; exponential moving averages with periods of 18 and If the crossing occurs in the direction from bottom to top, then the Call option is bought, from top to bottom - a bet is placed on the fall of the currency pair. We recommend choosing the expiration time within candles.
This strategy for binary options became the basis for the Vulkan Profit indicator freely available. Instead of moving averages, the chart displays only arrows pointing to a trade entry point.
If you work on it, then choose currency pairs with the maximum volatility The TS is entirely based on movings, but they do not work well if the chart moves in a narrow range. Of course, it is not always possible to obtain such a result as in the example. Conclusion The described vehicles work and can be profitable, provided that all the rules are followed. Let us remind you once again that money management plays an equally important role - do not violate the established risks of the transaction.
Any of the listed vehicles can be changed by entering additional filters. But you need to be careful with this, the strategy can be "broken" by unsuccessful optimization. There is nowhere in trading without a trading strategy, and it doesn't matter what you trade, binary options or forex. It is the ability to analyze the market and create trading tactics that distinguishes it from casinos and other gambling games, where the main emphasis is on luck, which, as you know, can be very touchy.
With the development of computer technology, more and more strategies appear on the network, and partly due to the fact that now everyone can create their own indicators, which, in their opinion, are capable of making a profit. Of course, among all this variety there is a lot of garbage, that is, tools that do not deserve attention at all, but sometimes interesting options come across that just need to be considered more carefully.
This is an author's tactic, which uses only two indicators, but despite this, it shows very good performance.
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Description The main advantage of the Ping-Pong strategy is that it performs equally well both in a trend and during a flat. That is, to trade, we do not have to wait for strong market volatility to enter the market.
How did it all start?
It will especially appeal to those who, for some reason, cannot work during the American and European trading sessions, and trade only on Asian sites. As you know, Asian sites are calm and measured, there are no strong trends, and important news practically does not affect the market. For forex traders, the flat market is of little interest, since there income is made up of the number of points passed by the price.
In binary options, we only need one pip to get our profit. But this is far from the only advantage of this tactic. Here are some more important nuances: Simplicity. There are only two indicators here and they are located under the working chart without overloading it. Signals are received quite often, so this tactic can be used in short-term trading as well. Here you can trade any contracts and practically on any expiration, without changing the indicator settings.
Ping-Pong is equally suitable for both professionals and beginners, who can easily learn to read market entry signals just by looking at the chart. Well, and the most important thing is high performance. During tests in history, Ping-Pong showed 4 profitable trades out of five concluded, that is, only one contract played a negative, which is very good in a low volatile market.
Installing elements As mentioned above, only two indicators are used in the Ping-Pong strategy, and the first of them is the standard MACD oscillator, which does not need to be downloaded, as it is available by default in all Metatrader models, as well as in many online platforms of binary options brokers. We do not touch the oscillator settings and leave them by default, that is: Important!
Also, these files work only in MT4; they will not work in other terminals and modifications of Metatrader. In fact, this indicator is a modification of the standard momentum oscillator, but with some additions. Here we need to set the parameter 3.
The strategy template is installed in the system templates folder, and access to it can be obtained using the Metatrader function "navigator". It should also be remembered that the template works only when the author's indicator is installed. If it is not in the archive, the file will not open.
Simply put, if the signal line of the indicator is above the zero mark, then we consider opening contacts only for an increase, and vice versa, if the line is below zero, we look only at signals for a decline, and we consider rising ones as false or low-quality.
If its signal line is above the zero mark, we start looking for a market entry point. Ideally, if it is not just above zero, but has already left the histogram bars.
This suggests that a trend has formed in the market, which means that our trade will be associated with much lower risks. It is also possible to enter simply at the moment when both the signal line and the histogram have rebuilt above the zero mark. In this case, this will indicate that a new trend has not only formed, but also rolled back, therefore, it is possible to enter the market even on a short-term expiration.
Momentum is a very fast indicator that reacts even to small market changes, therefore, to open a deal, we consider only those situations when the line just touched the lower border, or went chewing trading and all the nuances of binary options it. If the fracture occurred inside the corridor, this is not considered a signal.
Universal trading strategy
And of course, do not forget to wait for the current candle to close. If, after it has completed its formation, momentum still remains in a refracted state, open a contract. For options "below" In order to buy a short option, first of all, we look at the histogram and the signal line of the MACD indicator. They should be below the zero mark, and the strongest signal will be if by this time the signal line has left the histogram and started plotting outside of it.
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Once the signal is filtered, look at the momentum line. It should approach the upper border of its corridor, which we set in the settings. If the line touched the border or even went beyond it, and then broke downward, this is a signal to buy a contract. Also, do not forget that before making a deal, we need to wait for the candlestick to close.
This is a feature of the oscillator, in which it can rebuild several times during the formation of a candle. Accordingly, as soon as the candlestick has closed and the momentum confirmed the signal, we can safely enter the market. The line leaving the overbought zone and a reversal outside the corridor boundaries trading as a profession considered the strongest signal, as it tells us about the end of the rollback and the end of the attack of the opposing side.
Types of options As mentioned above, the working strategy for Ping-Pong binary options can work with any type of contract. If we are talking about working during a flat, then turbo contracts are best suited here, since the momentum line in such situations will break very often. And proceeding from the fact that we do not need to collect points as in Forex, we can enter the market several times, as long as the rules of tactics are followed by all its elements.
If we observe the formation of a strong trend on the chart, then ladder contacts with unlimited profit will look the most attractive, if, of course, your broker provides them. Here we will enter the market after each rollback, and accordingly, as a result, we should get only one losing trade at the time of a reversal or a strong slowdown.
But touch and channel options in this tactic are best avoided, especially if we are not trading with the trend. It is very difficult to predict chewing trading and all the nuances of binary options the price will end up by the end of the expiration, since the momentum indicator does not determine the strength of the trend, and the MACD lags significantly. In a flat, when the momentum breaks very often, and the histogram bars are small, contracts for 30 and 60 seconds, that is, turbo options, will look the most attractive.
If we are talking about trend trading, then it is best to start from what timeframe is used to search for signals. So, if we analyze the market on a minute chart, then contracts are concluded for 15 minutes, and no more.
If an hourly timeframe is used, then the contract life should be 30 minutes. It is better not to use a timeframe of 4 hours or older in this strategy, since contracts will have to be opened with a very long expiration, and most binary options brokers do not transfer open trades to the next business day.
If we enter the market, at the moment when the signal line went into the overbought or oversold zone very far, and then turned around, then we can judge that in the near future the movement will be without pullbacks, and therefore it makes sense to maximize profit open several short-term contracts with a low lifetime. Appearance of large players in the market Opening or closing of trading floors. All these and many other factors must always be kept in mind, which means that risks must be controlled.
In some cases, a risk of 5 percent is allowed, but this is only in the case of a pronounced trend and in the absence of a news background. We also avoid working with Martingale systems, since despite the fact that this tactic has very high performance, a series of unprofitable contracts is not excluded, which will simply destroy your deposit when the rates increase in progression.
As for the news background, despite the huge temptation to trade on strong price jumps, it is better to refrain from this. News fluctuations are as unpredictable as possible, and all signals from strategies or indicators are canceled at this time.
Directions for profit
Conclusion In fact, the high performance of the Ping-Pong strategy is a convention, since it was tested only in history. That is, the indicators were installed on the chart, after which it rolled back, and each entry point was analyzed. This makes it possible, with a certain degree of probability, to judge the performance of the tactics, but does not replace real-time tests, which each trader must conduct independently, and the more signals are tested, the better.
Well, do not forget to use a demo account for tests, so as not to risk your deposit in vain.
A: Empirical evidence concerning contextual effects elicited by multiple options available during choice within-choice context effects.
I had a free minute and I hasten to devote it to you. Well, let's go then Nowadays, many have decided to try their hand at binary options trading. They are a very promising area in the modern market, which provides good opportunities for development, obtaining stable profits, etc.
Alternative investment options Diversification The last point is especially important. There are many different investment options - it depends on your risk appetite, financial goals, etc. Thus, in order to make money work for you, you must first take control of your income and expenses, get rid of debt and start saving a certain part of the money for investment.
It is important to understand that this trading format is much simpler than the exchange one. This is due to the fact that you can not spend a significant amount of time, constantly be directly in the market. It all depends on the goals of a particular user, his capabilities.
You just need to correctly choose an asset and determine the direction of its price. Everything is quite simple, but still there is something to understand. What I'm talking about today: How do binary options work? Why do we need to know the answer to this question? To be successful in this area. Trading can actually be successful if a person understands how to do the right ones, choose them for specific needs, etc.
There are many nuances of this kind of trading that every beginner should learn.