Tactics of binary options trading has large similarities with the trade in the Forex with only one difference: in the Forex market you need to obtain the maximum profit, insuring yourself by orders. In binary options you need to guess not just the direction of price, but also its presence through time. In other words, in options trading the value of the indicators of the strength of the trend and reversal points is more than in the foreign exchange market.
Today’s strategy belongs to the category of professional for the following reasons:
- it uses four indicators that do not belong to the category of popular among the traders, although they are built on the basis of known oscillators;
- the tactics of binary options trading HRMA provides tight control over the trade situation. To catch the required simultaneous importance of all three parameters is not easy. In addition, there is the probability of false signals, so you need to be able to prematurely close your option;
- first, I recommend to use the indicator parameters by default, but in the future it makes sense to choose for each base asset their individual values.
Consider the details and tactics of binary options trading, and applied indicators.
Tactics of binary options trading
- ХРМА. A very specific indicator that can be downloaded online.
- BBands Stop. The indicator displays two-tone dots on the chart, interconnected by lines. This is a modified Bollinger bands indicator, showing the direction of prices. The red dots (orange) is a signal to sell, blue (green) — to purchase. Used in conjunction with other indicators, as during a flat gives a lot of false signals.
- DPO. Technical oscillator of detrended prices. Earlier in my strategies, I didn’t talk about this indicator. Its peculiarity is that it does not depend on the current price trend. It is a kind of histogram that shows the overbought or oversold condition of the market and is used to determine entry points into the market. Based on its work, the concept of short cycles is laid down, which consist of long-term cycles, the impact of which removes the DPO. Used only in combination with other indicators.
- SMA. A simple (arithmetic) moving average. Displays the average value of price over a certain period. Compares the average prices from its current level.
Trading conditions: actics of binary options trading works on different timeframes, but with clearly fixed term of expiry. For example, for the timeframe of 15 minutes long expiry time is recommended — 30-60 minutes for a smaller period of time frame (5 or 1 minute) the period of performance is 1 minute. Trading platform — Metatrader 4.
Opening position for sale (the option Down):
- ХРМА indicator changes colour from blue to red;
- BBands Stop turns red;
DPO passes the “0” level from the top down, while the price trend is below the SMA.
Opening a buy position (the option “Up”):
- ХРМА changes colour from red to blue;
- BBands Stop turns blue;
- The DPO passes the level “0” from the bottom up, while the price trend is above the SMA.
This tactic of binary options trading is very accurate and works on the principle of “the more indicators and exact matches, the less false signals”. Try it on practice, improving your skills along with financial investment portal Investlb.com !