Binary Options Daily Rainbow Strategy

There are just 24 hours in a mean solar day, with long task working hours, it is challenging to brand time for trading. Just there is a style to make a profit on your money in a brusk period, as brusque every bit 30 seconds. Binary options trading is an expeditious style to make a skillful turn a profit on your money without having to sit and cheque trading charts the whole day.

Nosotros bring forth for you lot some all-time binary option trading strategies to shrink loss and jack up profit on your invested money in seconds. However, winning in binary options trading cannot be consistently achieved through guesswork; you demand skilful strategies and exercise to master this prediction game.


What you will read in this Post

Fundamentals of a successful Binary Options trading strategy

Before stepping onto the field, you must know two bones parameters of binary pick trading strategies – the trade amount and the signal. Let us understand these 2 parameters in detail:

#1 The point

A signal is basically a movement in the market place or an indication nearly whether the prices will rise or fall. Information technology is more like an instinct after observing the trend going on around you. Signal helps you in identifying the adjacent step more. Clearly, it helps you in predicting whether the prices will become loftier or autumn.

At that place are certain ways past which y’all can identify a bespeak. Following are some ways:

  • Stay updated

Trading is related to business and the market. And then, to be practiced at trading, you must accept a decent knowledge about the share or stock market, industry news, and information provided to the public by the CEO. All this can help yous predict whether the resources’ price will go upwardly or down.

  • Technical survey

This is a method where you lot continue the market news aside and look closely at the trading graph. It is a more than centralized approach. You lot advisedly read the graph and clarify events of the past to predict the future.

Information technology is complicated but more reliable. You lot don’t accept to go all-in; in that location are many demo trading apps available online where you can practice and enhance your predicting skills. In one case your brain gets used to the trading pattern, it will be easy to sympathize the trend of prices going up or down.

#ii Investment amount

It is crucial to determine the amount of money y’all will trade. Being impulsive or mismanagement of coin will merely upshot in loss. Develop a strategy for managing your money to reduce risks. Here are two near used and reliable money management strategies – approach based on percentage and martingale.

  • Percent based approach

In this method, you decide what percentage of your majuscule you want to trade. For beginners, we recommend starting with 1% or ii%. For example, you have INR 50,000 in your banking concern account. So, you decide to trade 1% of information technology, that is INR 500. This is a secure way of managing your money and scaling downwards potential risks.

  • Martingale approach

This arroyo is a bit catchy and holds hazard if y’all aren’t experienced. But information technology is good to be familiar with all possible approaches. Here yous double the trading corporeality subsequently a loss to recover the previous loss and gain profit simultaneously.

5 Best Binary Choice Trading Strategies:

  1. Follow the Tendency Strategy
  2. The Rainbow Strategy
  3. The Candlestick Strategy
  4. The Money Menses Index Strategy
  5. The Turtle Strategy

One wrong prediction tin can brand you lose a handsome corporeality of money. Therefore, it is essential to constitute certain strategies to manage gamble and money. Mentioned beneath are some elevation trading strategies:

i. Follow the trend strategy


This is one of the best binary trading strategies for beginners. This strategy can be applied everywhere regardless of trading amount or market. First, you must study the trading graph and pattern of lines. You must have observed that they usually become in a zigzag way. This might seem like an easy task, but it requires practise.

Offset, it is better to get familiar with trading graphs and their tendency on demo trading apps before trading your money in a real-time market.

Once y’all learn to read the blueprint, information technology volition exist like shooting fish in a barrel to predict whether the asset’south toll will go high or low. However, this strategy isn’t very reliable for short trades. To apply this strategy, you must study the chart and see the movement of lines.

Baca juga:  How To Make Profit From Binary Option

If the line is going up, the prices are increasing and vice-versa. If the line is horizontally straight, then detect some other pick to trade your coin.

Information technology is essential to have practical knowledge, practice on the demo trading sites and get a articulate-cut idea.

2. The rainbow strategy


The employ of this strategy
must be washed in combination with the news strategy.
Start, you must know the nature of the market place you are trading in. So, later on knowing well-nigh the ongoing tendency, you can commencement using this strategy. This is a potent strategy that increases the chances of right predictions and winning.

This strategy uses basic signals to brand reliable predictions about the asset’due south price.

The rainbow strategy is a design that includes the usage of various averages in actions with varied periods. Each of these periods is identified with a different color.

The moving averages are used to recognize the price changes. Moving averages with many periods react slowly to cost changes and moving averages with few periods react rapidly.

If yous observe a strong motility in the asset chart,
the moving averages
are most likely to motility from slow to fast management in real-time trends.


The average that moves the fastest will be placed closest to the asset price, the second closest will be the 2nd fastest, and the third closest to the price will be the third-fastest moving average, and so on.

When you observe that the numerous moving averages are placed in the pattern as discussed in a higher place, y’all can say a durable motion in price in a determined direction. Therefore, when yous run across such a pattern and tendency, merchandise your money right away as this is a favorable time.

You lot can choose how many averages yous would like to utilise. Most practiced traders use 3 moving averages.

If the moving averages are positioned so that the shortest line is to a higher place the medium moving boilerplate and the longest is below the medium line or moving boilerplate. Y’all must trade on the nugget prices falling.

It depends on you to determine the number of moving averages in a period. Therefore, it is recommended to use a duplex of periods you used previously in each moving average.

This change in the numbers of periods used in different moving averages will requite you lot reliable ratios, which will, in plough, provide you with precise signals.

For beginners, it is advised to use the ratio of 5, 10, 15, and 20, and and then on.

Steps that y’all can accept on achieving the correct order:

  • Trade right away – once you achieve a desired or familiar blueprint later the last moving average gets positioned, information technology is the right time to invest your money.
  • Exercise patience – if you want to examination the rainbow strategy and avoid going all-in, then wait for a period. This fashion, you can check if the betoken helped you in making the correct prediction or non.
  • Wait for two-iii periods – this step gives you a sense of security, peculiarly when you lot are trading a large amount of coin and don’t desire to risk relying on just one period. You wait for two to 3 periods or even more as per your wish.
  • Take your time to empathize the trend of the asset chart and and so make a movement. However, wait no more three periods. After iii periods, the market may start to change, and new trends might fix in.

3. The candlestick strategy


Steve Nison introduced the candlestick formation strategy in one of his books in the year 1991. A good trader must know how to read the asset charts.

One time you sympathize its patterns and movements, information technology will exist like shooting fish in a barrel for you to predict the next motion of the asset in the charts. For example, there is a pattern formation in the asset charts called the candlestick formation. The patterns formed by the lines going upwardly and down appear like a candlestick.

The top line is the highest price called the mountain, and the bottom line is the everyman, called a valley. There is no one specific formation in this strategy, but there are a few that y’all must learn to identify and read to trade improve.

To apply this strategy, y’all must observe the nautical chart and design of prices for a while.
You will notice some repeated pattern formation. Then you can use your knowledge and experience to predict whether the line will go up or fall.

four. The Coin Menstruation Index strategy

exchanges

This strategy is benign if you are planning to play it speedily, allow’s say five minutes. Yes, this strategy works that quickly. It is fast and effective.

Being a trader of binary options trading, you must be aware that the trading market is non random in the brusk term. One more benefit of this strategy is that it saves you a good corporeality of time. If you play in five minutes, y’all can make more trades per day.

Baca juga:  Ig Markets Singapore Binary Options

However, such brusque-term binary option trading
strategies are required adventure direction and technical analysis.
You must know that the stock prices don’t change in 5 minutes regardless of the visitor is working well or bad in the market. So, the money menses index strategy is fourth dimension-saving but as well includes lots of risks.

The simply thing that changes the asset’s price in a curt flow is the need and the supply. These 2 factors determine whether the asset’s toll will go upward or fall in a concise period.

To main this strategy and make money every five minutes, you lot must learn technical assay. This will aid you in understanding whether the other traders are selling or buying. Once you understand this, it volition be effortless to use the MFI strategy with the money catamenia index indicator.

MFI alphabetize indicator – the indicator tells you lot the ratio of the asset sold to the number of the nugget purchased. The value is by and large between 0-100.

Let us at present understand how the coin catamenia alphabetize indicator works:

  • The number 0 – indicates that many active trader’s plan on selling the nugget.
  • The number fifty – indicates that an equal number of active traders want to purchase and sell the asset.
  • The number 100 – indicates that all the traders active on the platform desire to buy the asset.

Now that you understand the relationship between the ratio of the MFI indicator and the traders planning on buying or selling the nugget, it will be easy for you to cull 1 option and secure your money. In improver, yous can easily estimate the asset price motility after understanding the need and the supply.

In simpler words, if the number of traders buying an asset is much greater than the number of traders selling the same asset. At that place volition be fewer traders to strength the price of assets upwards. As a result, the need and price volition both go down.

In the same way, if the number of traders selling an nugget is greater than the number of traders buying it, the supply will diminish, and prices will increase.

Mentioned below are the ways you tin can use the MFL alphabetize for your next accurate prediction:

  • If the money flow alphabetize is more than than lxxx. It means that many traders buy the asset, and the prices may fall.
  • If the money menstruum index is less than xx. It means that many traders sell the asset, and the prices are likely to ascent.

This strategy works best for a short period. Traders usually use this strategy to play five minutes bets. In the long run, it is tough to predict the procedure through this strategy every bit information technology goes to the extremes. Then, avoid using this strategy for your long-term trades.

5. The Turtle Strategy

This is a popular strategy among binary options traders. As the name suggests, this strategy uses the movement of nugget prices in the last 20 days. Then utilise this data to predict the side by side hit; it might be loftier or a low. This strategy provides you lot two signals:

  • The purchase point – when the current price movement is higher than the bars/lines of the last 20 days.
  • The sell signal – when the current price movement is lower than the bars/lines of the past 20 days.

This strategy can exist used easily by beginners. However, the outcome of the turtle strategy has been mixed. Trading strategies help a trader in identifying signals; none of them promises to be 100% accurate.

Reasons to apply a trading strategy

  • Implementing actions without proper planning or strategies are subjected to failure. Therefore, information technology is crucial to make a strategy before trading your coin on any platform.
  • It is real money you lot are dealing with. To be a successful trader, y’all must know the place you are putting your money into.
  • Never care for trade as mere gambling if you lot strive to be a practiced trader. Do non rely on guesswork. This way you will only lose your money.
  • Using strategies gives you lot potent signals about the movement of asset prices. However, you can only use the situation to make a huge profit if yous understand the tendency and predict correctly.
  • Information technology saves you from making impulsive, emotional decisions.
  • Once you develop a strategy that works all-time for you. You lot can primary and modify it to brand a long-term profit.
  • Using money direction strategies to make up one’s mind how much money yous are going to invest in trading can save you from irresponsibly losing your money. Since greed and guilt tin can easily dispense you into taking spontaneous actions.
Baca juga:  Ellevest Vs Betterment: Which Robo-Advisor Is Best For You?

Testing if a Binary trading strategy works for you lot

At that place are a broad number of strategies that you will come up across on the internet. Each of them will seem workable until you test it. Dissimilar traders perceive signals differently. Identifying which strategy works best for you volition assist you brand money in the long run.

No app or person can tell y’all which strategy will work best for yous. It is the work of a trader to test dissimilar trading strategies and mold them in his way to make the well-nigh out of them. Binary trading requires accurate predictions. It demands mastery over strategies to win. Wrong use of whatsoever strategy or mixed signals will somewhen atomic number 82 you lot to lose money.

Avoid using existent money to test new strategies. In addition to that, make sure to establish limits and have a strategy to manage your money.

Detect the right timeframes for the binary option strategies:

Which timeframe is the best for trading Binary Options with strategies? – Brokers offer you to trade thirty seconds, 60 seconds, v minutes, or fifty-fifty 24 hours expiration times on binary trading. From our experience, you can use the discussed strategies in every timeframe y’all want. It is e’er the aforementioned, the timeframe does not thing.

Binary Options timeframes for strategies

But we can recommend staying away from 30 seconds or 60 seconds timeframes if you are a beginner. Because you demand a very high skill to do fast trade executions.

Oft asked questions:

What is the best Binary Options trading strategy?

In that location is no specific strategy that tin can prove to be the best for all the traders out in that location. Different strategies work for different traders. Therefore, you lot must effort and test varied strategies to discover out what works for you. However, having a practiced noesis of the market and learning technical analysis will help you succeed.

What is the minimum corporeality required to trade Binary Options?

The minimum trading amount differs from broker to broker. Some might ask y’all to get-go with $10, while for others, it might be as low as $1. For instance, the minimum trading amount for the IQ Pick or Quotex.io is $10.

Where does the turn a profit coin come from?

There is no external source of coin in the binary trading platforms. The coin is existence rotated. For example, two traders invested an amount of $100. One trader won while the other loses.

The money lost by that trader will go transferred to the ane that won, depending on the profit percentage given by the broker to its traders. Some percent of the coin lost will go to the broker.

What is the maximum corporeality that trading Binary Options can earn?

The answer to this question depends on the amount of money being traded. For example, a trader invested $1000, and the profit per centum provided by the banker is 60%. In this case, winning would get you an additional $600.

In total, you will have $1600. However, if yous neglect, y’all will lose all your coin, i.due east., $1000. There is no stock-still maximum amount that can be earned through trading options. It depends on the amount of money traded and the number of wins.

Practice Binary Options trading strategies work?

The binary trading strategies cannot promise you lot 100% success. Since the trading strategies only give you a bespeak to predict your side by side move. Trading strategies don’t exactly tell you whether the nugget price will go loftier or fall. However, good practice and knowledge of the asset will increase your chances to win.

Decision of the best Binary Options Strategies

To succeed in binary option trading, in the long run, y’all must practice the strategies repeatedly. Along with using the strategies, you must have patience and avert taking impulsive deportment. Using any strategy for one time will not bring you profits. Testing, trying, and repeating are the merely way to master the trading tactics.

Do not quit a strategy and opt for a new i every time yous experience a loss. This will only confuse you, and you volition never exist able to brand the best out of one strategy.

Instead, stick to 1 strategy and learn the right time to use it. Information technology is also important to figure out the time where you must avoid using certain strategies. Nonetheless, if your strategy is non working, you must reconsider it and make a new one. It is proficient to take an expert’s communication while making a strategy.

At present that you have read some of the all-time binary option trading strategies, detect the one you have understood well and examination it today. Then, get into activity and start making coin today!

Run across my other trading strategies here:

  • Line chart strategy
  • Next candle prediction
  • Keltner channel
  • CCI indicator
  • Bollinger bands
  • MACD
  • Multiple timeframes
  • Open range breakout trading strategy
  • Range trading strategy
  • Support and resistance
  • Trend reversal
  • Trend line strategy
  • EUR/USD strategy
  • Fibonacci retracement
  • The all-time strategy
  • Money management strategy
  • Breakout strategy
  • ATR
  • five minutes
  • Double up strategy
  • Candlestick patterns
  • Hedging strategy
  • Compounding strategy
  • Reverse pyramid strategy
  • Market pull strategy
  • Boundary strategy
  • Long shot strategy
  • Ladder trading strategy
  • Correlation coefficient
  • Majuscule draw downwardly
  • Strategy for commodities
  • 60-second strategies

Source: https://www.binaryoptions.com/strategies/

You May Also Like