Binary options without indicators — separate section of trading strategies, which are based on the formation of price trend of certain shapes at different time intervals. As practice shows, drawing by price placeholder shapes allows to predict the trend direction is not less accurate than technical indicators. Professionals prefer to combine artistic and technical analysis to get the most accurate signals. But for general development I focus attention on graphic analysis, diluting it with a few unconventional strategies binary options that do not apply any indicators or figures.
Rules of trading with binary options without indicators
Trade chart is strongly not recommended to novice traders! Understanding the formation of the figures comes only with experience. Without experience, you can see that really would not be, you have to open deliberately unprofitable position. Even the opening trades candlesticks in binary options — it is a time bomb, because due to lag or redraw signal is possible with high probability to loss.
Rules of trading without technical analysis:
- only work with liquid currency pairs in Euro and US session, equities and metals should be used;
- the trend angle of 60° or more relative to the horizontal axis indicates a good movement of the market you can trust on a short timeframe;
- be very careful with news trading or even not to log on 30-60 minutes after the release of the report. Open position at the time of the news release only at first seems a simple strategy. In reality, even positive news could mean a pullback of the trend, not its growth, if investors ‘ expectations were not met. In the news trade there are many mines, because from a risk perspective it can be equated to the martingale;
- not having a proven system of risk management (money management), you cannot apply binary options strategies with the principles of the martingale.
I will turn now to specific examples. As in the previous article binary options strategies “Absorption” and tactics based on 3-increasing candle was already discussed, so I will not mention them now.
Practical examples of strategies without indicators
Strategy of 4 timeframes
It is based on the simultaneous comparison charts with short and long period. Long time frames show weak correction and the short time frames price is filled with noise. Tactics of binary options refers to scalping, timeframes — M5, M15, M30 and H1.
Rules of entry into the market:
- with the coincidence with the direction of all 4 candles up buy binary option;
- with the coincidence with the direction of all 4 candles down sell binary option.
Please note that at 16.00 all the candles closed to the growth of the market and a binary CALL option with an expiration period of 30 minutes closed with a profit.
All the timeframes in binary options should have the same trend, it is an accurate signal. If at least one candle closed in the opposite direction, then wait for the fulfillment of the conditions. And as the shortest timeframe — M5, actually perform the trade on it, and the rest intervals are the filters. The expiry time of the transaction choose depending on the currency pair. You can use 15 minutes.
- Trade with the trend using the levels
Classic tactic that catches the moment of a sharp market movement after a news release or flat. In the flat level channel trade using Bollinger Bands is popular. There is no need in bands in a strong market.
Good price line can be seen by drawing the levels of support and resistance. If in the flat there is a risk of penetration of the boundaries of the channel, on a bottom-up chart you can be sure that the price for a long time will remain in the corridor of their levels.
On the figure you may clearly see the exact entry points that can give over 70% of successful transactions. In relation to the time interval optimal average interval is M15 or M30. You can even put the M5, but not below.
And if to remember the model “Absorption”, here’s an example of an absorbent candle and the rising channel.
This simple strategy can be modified as you like, but the essence remains the same — a strong trend suggests that the market will have some time to go in the same direction. The period of expiry you will have to pick up manually, and potential delay can be enhanced by indicator tools (dial indicators or oscillators).
- Figure analysis
The figures do not give an accurate signal and work on them is tantamount to walking on the field with mines. And yet to know at least their general features, and in general, how to work with them, you need — as a minimum they will report on the formation of market movement.
These are the figures, which suggests that the market had potential for growth. Arrow indicator would be most welcome to shapes.
Above is another example of appearance of the falling chart. This is a simple figure that is able to consider quickly. Below is an example of complex graphic that appears on the screen of the platform is very rare.
It signifies the struggle of bulls and bears. Ideally this strategy can be disassembled in the video, but its essence is simple: as soon as the candle breaks the border of the rhombus and closes beyond it, we can say that either the bulls or bears won a landslide victory — the transaction can be opened in the direction of the last closed candle.
And some advice that can be applied to all strategies without indicators:
- For all tactics the risk should not exceed 1.5-2% of the Deposit;
- if it seems that there is a simple figure, it is an occasion to look at the candles and add the levels of support and resistance to the screen. To trade by them is much easier;
- unlike indicator trading systems it is very difficult to download robot on the basis of the figures. But proponents of automated advisors can order the writing of code. And if the robot is successful, it can be sold;
- most of the strategies work well on the currencies. For a specific asset (stocks, bitcoin) it is better not to apply them. Currencies pricing is often speculative, the shares are more affected by the fundamental factor.
In the Internet there are many video tutorials that clearly show the use of curly tactician in binary options. A good video can be downloaded on the website Investlb.com (if you haven’t found, let us know and we will give you all the materials). Professionals are advised to record their trade on a demo account, to have the opportunity to analyze the reasons of mistakes, missed opportunities and the reasons for profitable trades.
Summary. Advantage of strategies without indicators is that technical indicators, no matter what their number was not imposed, are still not accurate due to lag. Trade on martingale, economic calendar, Pivot points and the heat map are not recommended (these tactics actively offer brokers “kitchen”) because of the absolute inaccuracies and opacity signals. Technical analysis can also be applied (dial indicator, stochastics), but the candles and the shapes will be the supporting tools. You can also download information about the platform Grosl Trader (works in the browser version), which gives the exact tips for opening a position. The training video will help you to learn how to work with the platform.
You can ask any questions in the comments after the article. Also I propose to discuss what exact tools you apply in your trading and what is their profitability.