Binary Options 3 Trading Patterns (Strategies)

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Binary Options Trading Patterns (Strategies)

Successful binary options trading could be done using certain trading patterns that’ll increase our chance to make profitable trades, turning a guesser into a long-term profitable trader.

What are the types of binary options trading patterns?

  • First type (Technical): These binary options trading patterns assume the use of specific patterns and various techniques to read charts that will eventually greatly increase your chance to win. Majority of day traders use type of analysis, but it could also be used for long-term trades. This category includes trading patterns that you can find on this website, for example.
  • Second type (Fundamental): Second type of analysis requires a bit of a knowledge. In this case, we have an investor trying to predictthe direction of the market, using statistics, evidence and world news. In certain circumstances, there is a great chance that the asset prices will increase or decrease. For example, a drought in Brazil will reduce the price of commodities, like coffee.

And how do the trading patterns alone look like?

These following trading pattern belongs into the first category – technical analysis. Their goal is to predict the direction of the market and there is a great probability for your trade to turn out in one of the two suggested ways – a win. This pattern is based on the assumption that the asset prices return back after a certain fluctuation, which means that if the price was, in the last 60 seconds, increasing, it should now decrease.

Of course, this is not a rule and there is a great probability that this rule won’t work. However, calm market and small movements usually mean that you’ll be seeing a lot of upward and downward slopes of the curve.

Binary options usually have a short expiration date and the numbers get restored quickly and that’s what this technique is ideal for. Platforms usually offered by the brokers show the latest chart movements of assets in the time relevant to you.

So, if you are trading assets that’ll expire in 15 minutes, there is a great chance that the broker will offer you a chart from the last hour. If, on the other hand, you are trading assets that’ll expire after 15 seconds, broker will offer you a chart from the last 15 minutes, which will increase the pattern’s accuracy.

If the actual price( in our case 79.7199) is higher that the opening price( 79.6921) the price will much probably soon move down, that’s why we should choose an option called PUT.

On the other hand, if the price would be lower that the opening one, we would choose an option CALL.

After buying, you should wait until your bought option expires – in our case 15 minutes.

You’ll see whether you won or lost afterwords. If the chart went down, the price decreased and you’ve chosen the option put, then you won.

In our case, the price have changed and is now at 79.7032,which is less, so we ended up “in money” and generated a 91% return. As you can see, the price followed a tendency that we’ve already explained and settled into a starting price. Although we’ll see similar results most of the time, we don’t necessarily have to end up in money!

Always remember that if the asset is increasing, meaning that the price is not calm , this option won’t work out. There could always be some news that can disturb the price and this analysis won’t help you, in this case. That’s why this particular pattern is used only with less volatile assets that are neither increasing nor decreasing and there is no great news expected in the near future that could ruin all our efforts.

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14# Binary Options Strategy High/Low: 1-2-3 pattern with Retracement

1-2-3 pattern with retracement: Binary Options Strategy High/Low

1-2-3 pattern formation

Submit By Joy22

This Binary Otions Strategy is based on the 1-2-3 pattern formation and three moving averages.

But the secret is the how entry position with this method.

Market: Forex, Commodities, Stocks, Futures.

Time Frame 15 min= Expires Time 60 min;

Time Frame 30 min= Expires time 120 min;

Time Frame 60 nin= Expires time 240 min;

Time Frame 240 min = Expires Time 960 min.

Time Frame Daily=Expires time 4 days

1-2-3- pattern indicator;

5 Exponential moving average;

10 Exponential moving average;

50 Exponential moving average.

Rules: 1-2-3 pattern retracement: Binary Options Strategy High/Low

Conditions For Long Entry:

Once the indicators patter 1-2-3 draws on your chart Buy Arrow, entry long position on the retracement at the level of 5 Exponential Moving Average (gold line).

Conditions For Short Entry:

5EMA

Sell

Once the indicators patter 1-2-3 draws on your chart Sell Arrow, entry short position on the retracement at the level of 5 Exponential Moving Average (gold line).

Exit at the exipres time.

The Entry position on the retracement with 1-2-3 model is a great idea because, it is an optimization that makes pips gain are those that make the difference. This is a great advantage on the profitability.

This Binary Options Strategy is good also how Trading System for all .

In the pictures below Binary Options Strategy High/Low: 1-2-3 pattern with Retracement in action.

Binary Options Trading Strategy – Best 60-Seconds Strategies

Today we are going to share our binary options trading strategy with you. This strategy is designed to help you identify whether you’ll like trading binaries and teach you how to trade binary options the right way. If you prefer to play it safe over gambling, you’ll need a strategy or tactic to help you master binary options and other trading activities. This is where our TSG team comes to the rescue. We will provide you with the best binary options strategy.

The main reason we’re interested in learning about trade binary options is the fact that binaries simplify what we’re already doing in Forex. At the same time, binary options also allow us to make more money in the process. We are also controlling the risk.

Binary options are easy to understand. This is coming from someone who has little or no experience in the area. If your favorite approach to trading forex is to jump in on a fast price movement and ride the intraday trend for as long as the momentum lasts, you can learn how to make money trading binary options very quickly.

When we first discovered binaries, the light bulb in our heads turned on. We figured out the same thing that we’ve been doing in Forex can be done. But walk away with 75%, even 95% winning trades because we only needed to get the direction right. No need to worry about how many pips we could grasp in the process.

And that, my friends, is the real beauty of binary options.

What are Binary Options?

Binary options are a form of derivatives that have a fixed profit or loss. Trading binary options is simple. All you need to do is ask yourself a simple yes or no question. Will the price of the underlying asset be worth more than the strike price at the expiration date?

Now, let’s start by understanding how binary options work.

Essentially, we can trade binary options for any type of instrument. Whether it be commodities (Gold, Oil or Silver), Forex exchange currencies (EUR/USD, GBP/USD or USD/JPY), or stocks (Amazon, Tesla or Twitter).

So, the first thing you need to decide upon is to select the asset to trade.

Second, before submitting our trades, each of these instruments has a current value at any given point in time. How to trade binary options depends on our trading skills. It is used to predict where the current value will be some time in the future. In other words, we must use our skills to predict the market direction. This will determine our success in trading binary options.

The market can only go up or down. If we believe the current value will go up in the near future, then we buy a Call option. On the other hand, if we believe the current value will go down in the near future, we buy a Put option. Read more about call options vs put options.

Third, we need to determine what the most critical aspect of trading binary options is. The expiration time will ultimately determine if you’re making a profit or not.

Trading binary options require you to correctly forecast two things:

  1. Whether the market will rise or fall.
  2. Your forecast needs to be accurate during a certain time frame – called the expiration time.

If you’re right on the market direction by the time of the expiration time, you earn a profit. Being wrong means you incur a loss. The way binary options works is that if you’re right on the market direction, you’ll get a percentage of what you initially invested in.

Typically between 75% and 95% and in some cases, even 100% of your initial investment, depending on your Binary Options Broker.

Supposing we’re wrong on the trade, then we’re going to lose the whole amount invested in the short term.

We have made a nice infographic that highlights the four steps on how to master binary options trading.

Now we’re going to focus on step two, which is how to predict the price movement. If you manage to figure this out, then knowing how to make money trading binary options will be a piece of cake for you.

Now, before we’ll outline a method on how to make money trading binary options, we always recommend taking a piece of paper and a pen and take notes on the rules of the best binary options strategy.

In this demonstration, we’re going to look at the buying Calls.

The Best Binary Options Strategy

Our team at Trading Strategy Guides is ready to share with our beloved trading community our 60-second binary options strategy. We don’t just hope this strategy will make you money, we’re certain it will. The mathematical model behind this binary options trading strategy has a proven market edge.

The only tool you need to trade binary options successfully is the RSI indicator.

Even the RSI indicator is not good enough if it doesn’t have the “right” settings. The RSI default settings need a little bit of adjustment if you want to master the 1 minute time frame. We use a 3-period RSI to trade binary options profitably.

Naturally, a lower RSI period means that the indicator will tend to be noisier than normal. But it is more responsive to the immediate price action. Along with the RSI settings adjustments, we also played around with the overbought and oversold readings. We found out that by using an 80 RSI reading for overbought and 20 RSI reading for oversold condition, we get more accurate day trading signals.

*Note: Make sure you adjust the RSI settings before you jump into the binary options trading strategy.

By changing the RSI overbought and oversold line, we have eliminated the noise. So now we’re ready to highlight our binary options step-by-step guide:

Step #1: Find an instrument that is showing a low the last 50 candlesticks. Use the 60-second chart (1 Minute TF)

The 1-minute binary options or the 60-seconds time frame is the best chart for trading binary options. In other words, the best binary options expiration time is the 60 seconds time frame.

We recommend highlighting the starting point on your charts. And the ending point of your 50-candle low that you have identified. Simply draw two vertical lines on your chart through the starting point and ending point of your 50 candle low.

When you count the 50 candle low, you should always start from the current candle. Then go from the right side of your chart to the left side of your chart. If you manage to count 50 candle low, obviously the starting candle point will be your 50 candle low.

Moving forward, it’s time to put the RSI indicator in use and spot if we have extreme oversold reading or not.

Step #2: At the moment the 50 candle low develops, we need an RSI reading of 20 or below

Since this is a reversal trading strategy we need the RSI indicator to show a bullish reversal signal. An RSI reading below 20 shows that the market is in oversold territory and it can potentially reverse.

In our example below, the 1-minute EUR/USD chart is satisfying the two conditions.

Keep in mind that in order to move to the next step, we need the 50 candle low. We also need an RSI reading below 20 to happen at the same time.

We added one more factor of confluence that needs to be satisfied. If used in conjunction with the previous two conditions, it will make you a money maker binary options trader.

Step #3: Look for a bullish divergence to develop between the RSI indicator and the price.

When trading reversals, you need to be as precise as possible. The more confluence factors you have in your favor the more accurate the reversal signal is.

What we need to see here is for the price to continue moving lower after the 50 candle low was identified. At the same time, we need the RSI indicator to move higher in the opposite direction.

If the price moves in one direction and the momentum indicator moves in the opposite direction, it means they are diverging from each other. This signals a potential reversal signal.

Now it’s time to highlight how to find the right entry point for the binary options trading strategy.

Step #4: Buy a Call Option after the first candle that closes above the high of the 50 candle low

The first thing you need to do is to mark on your chart the high of the 50 candles low with a horizontal line. The first candlestick formation that breaks above this high is your trade entry signal to buy a 60-second Call option.

It’s that simple!

After you decide the amount to invest and pick the 60-seconds as your expiration time, it’s time to sit back and wait 1 minute before hopefully collecting your profits.

Step #5: You collect your profits if the next candle closes higher than your trigger candle

If at the expiration time, the price is higher than the price you opened your Call binary options, you’re lucky because you’re about to check-in a big payout.

For example, if you’ve invested $1,000 and your binary options broker offers you an 85% payout, it means that you accurately predicted the outcome of a trade. You get back your initial investment of $1,000 plus the 85% payout which in our case is $850 in profits.

If you want to buy Put binary options, use the same binary options guide, but in reverse.

Conclusion – Binary Options Trading Strategy

Before learning how to make money trading binary options you need a great Binary Options broker. You can’t start hitting home runs right out the gate without making sure you have a binary options broker who wants you to succeed. Secondly, you need a strategy based trading technique to reveal the market direction. You only need to forecast if the price will be up or down during the next 60 seconds, making it very convenient.

We use a heuristic approach to speculate on which way the price is going to move during the next 60 seconds. At the end of the day, traders are looking for a reliable binary options system that will help them make money from trading.

The good news is that the best binary options strategy is exactly that system. Our team is built of many traders with experience in the industry, including binary options traders who know how to make winning trades. We’re ready to help you with every step of the way.

Thank you for reading!

Also, please give this strategy a 5 star if you enjoyed it!

Don’t forget to read our guide on regular options trading for beginners here.

(58 votes, average: 4.29 out of 5)
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Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Trading Education, Free Demo Account!
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  • Binomo
    Binomo

    Good Broker. Only For Experienced Traders!

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