Binary options for the day — medium-term strategy for those who can’t hold a computer for several hours and constantly watch for the appearance of signals. Short-term strategies require maximum concentration and attention, while the forecast for one day or even a week is a part time job, a nice addition to the main work. The trader needs 10-20 minutes per day on the search of signal and understanding the indicators on the long frames. About the rules of trading on long time frames and examples of binary strategies read on!
The rules of options trading with an expiration period of one day
Binary options trading with an expiration period of one day or more has several advantages:
- on the minute charts indicators strategies show a lot of false signals because of price noise, the nature of which is unpredictable fluctuations, confounding the understanding of the direction of the trend. Daily chart price keeps out noise and keeps the price slide (slip on the minute indicators zero deposit);
- day tactics are often used to trade at the end of the day one of the sessions, when binary options trading activity is on the decline;
- low risk in comparison with scalpers strategies.
Trading rules and strategies of work with binary options for day:
- choose a broker that gives the possibility of early closure of option. If the trend went the wrong way and wait for the end of the day makes no sense, prematurely closed binary option will save time and minimize the loss;
- try to close positions before the weekend. The weekend markets are closed. In addition to swaps (payment of a fee for transferring of your position), the trader may lose money because of the gap — the gap between closing price and opening day;
- binary options for day does not mean you have to put the expiration of 24 hours. This means that the analysis uses daily charts, and expiration can be set for a few hours.
How to trade binary options 24 hours: tactical strategy
1. Strategy on the news
In short time frames the strategy on news in binary options is not recommended, you can not say about long ones. At the time of news the market is volatile (volatility may last a day). Institutional investors (they set the basic direction of prices) estimate associated with the solution (news) the factors and make a decision. The first 30 minutes of mood are not clear, but the direction of the price will gain direction. Make a deal for a few hours and make money with big investors!
- Example: on the eve of the weekend on Friday at 15.30 05.05.17 report was published Nonfarm Payrolls (to be released in the last day of the first week). With the forecast of 185 thousand new jobs fact amounted to 211 thousand That’s how the dollar responded this day:
At 15.30 at the time of publication of information the investors chose to temporarily close positions, that led to small dip in the first 30 minutes. Another 30 minutes took the traders to an assessment of the situation and by the evening of Friday, the dollar reached a maximum, which instantly collapsed on Monday morning. Insights:
- binary options can bring a guaranteed profit when you open an hour after news in the direction of the main trend. Expiration of about 1-3 hours;
- before the weekend, at the end of the week binary options shall be closed.
2. Strategy on indicators
2.1 Binary strategy Momentum and EMA
Binary strategy, close to classical designed for medium-time frame with the opening of the transaction at the end of the day. You can trade any liquid pairs. The main rule of binary options — with forecast to clearly observe the coincidence of all indicators together. Trading conditions:
- expiry time for binary option — the end of the day;
- time frame — 1 hour;
- indicators: candles, Momentum (18), EMA (24).
Signals for purchase of binary option:
- the candle body is wholly or at least 80% crossed EMA upwards;
- Momentum indicator above the zero level.
Signals for sale of binary option:
- the candle body is wholly or at least 80% crossed EMA upwards;
- Momentum indicator below the zero level.
The end of the week, chosen at random. At this point novice traders go out of the market, leaving the strong players that will not destabilize the market. You can trade without the risk that the deal will suddenly unfold for unknown reasons.
2.2 Binary strategy “the Last hour”
I could cite you examples with a complex indicator strategies of binary options allegedly modified under the trade in the last hours of the day (SuperWoodieCCI modified oscillator Signal of MA Crossover modified sliding). But it makes no sense. All these strategies by the end of the day have not the slightest relationship. We offer you a simple candlestick analysis, which can supplement MA:
In this figure it is seen that the rising candle started to form at 19.30 (GMT) and at 21.00 you could earn. The essence of the strategy in the following:
- at the end of the day the traders begins to lock position. If to the last hour the trend was decreasing (the majority of opened positions), the fixation position is going to mean growth of the trend. Conversely, if the market grew, the position fixing would mean a sharp turn;
- set timeframe strategies 5 minutes or 15 minutes. Waiting for the last hour, enter the market with the expiration of a maximum of 30 minutes. For the last 15 minutes usually there is a collapse.
In the picture above before opening a position at the end of the day was flat. So on the circled candle it would be dangerous to enter, entrance no later than 19.45. But with understanding of trend direction, everything becomes simple. Below is a more accurate entry signal.
Up to 20.00-formed downtrend, 20.15 candle draws a turn, enter the market. At 20.45 close option. On the chart it will look like this:
At 20.00 Began to form a drop-down reversal of the trend (fixation of position), at 20.15, the trend went up (yellow circle), at 20.15, the option was closed. By the way, we are not alone work by this tactic, it’s the only explanation why in the last 15 minutes (20.45) the price has gone down.
- Important! We have put together two options of the situation. In the first case, the entrance to 20.00 would bring a loss and the second – profit. The reason the preliminary state of the market. The strategy only works when before the last hour there was a pronounced decrease or increase.
Summary. Forecast of transactions in binary options one day is done by the hour or daily charts. We recommend you to view both timeframes. If the direction of the price is the same, then it’s the signal to open trades with expiry equal to the lesser timeframe. Day strategy is recommended for those who have most of the work, not ready to be at computer and seeking regular trading. We will be glad if you share your strategies of binary options for the day or leave a few tips for our readers in the comments after the article!