Binary Options Trading For Dummies

Note! If yous are new to binary options and different strategies delight go to our strategy page where nosotros comprehend the topic comprehensively!

If you’ve studied and understood my previous posts about the fundamentals of binary pick FX trading and binary options indicators, you are now ready to trade for real. Here are iii different strategies that I use, cull one based on your risk appetite. Adept luck!

Conservative Long-term Strategy

This strategy is for those who are new to this game and want to build upwards their uppercase slow and steady. The point of this strategy is to minimize run a risk and look for the perfect setup on the nautical chart.

In this case the perfect setup is using the ZigZag’s concluding ii points, and depict a Fibonacci between them in the direction of the trend.

Draw your fibo from point ane to point 2 for a downward trend, and vice versa for an uptrend. Your target is 161.8 projection level.

In order for the point to be fully valid, there has to be a retracement to betwixt 50 – 88.six. College the retracement goes, stronger the indicate. In the example higher up, the retracement happens next to the number 2 in the up left corner.

They key here is to be patient until all 3 factors line up.

The entry rule is:

–        Price hits Fibonacci project level 161.viii.

–        Price is inside or outside of the bounds of the ruddy channel.

–        Value Chart hits level eight or in a higher place

Your Expiry tin exist between 5 and 20 minutes. And your target is one-two trades per day.

And money management proffer for this strategy is to take 2 equal bids per mean solar day for 20 days. Increase your position by l% next solar day. If you lose, offset with the last gear up of bids:

Day 1: ten + 10

Twenty-four hour period 2: fifteen + xv

Day 3: 21 + 21… and so on. You should reach around 5k in profits within 20 days, and side by side calendar month but starting time over or behave on from where yous left.

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Semi-Bourgeois Strategy

The semi bourgeois strategy involves 4-6 trades per twenty-four hours. The rules are the same as for the conservative strategy, just with one exception: We take the trade at Fibonacci project level 127 every bit well every bit 161.eight.

Now, for level 127 trades, I would advise non to take the trade with more than 6 minutes to the death. This is because usually level 127 represents a consolidation level to draw buyers/sellers into the tendency to go more liquidity and the cost usually carries on in the direction of the trend within the next 3 candles.

The rules for entry are the same as with the bourgeois strategy:

–        Value Chart hits level viii

–        Price is within the cherry zone

–        Price hits the Fibonacci 127 projection level

Utilise the same money management as with bourgeois strategy, merely your earnings will increment faster.

And remember, You accept to stick with the entry rules.

Now, the below strategy is a very aggressive one that defines the ways of sane trading. This strategy represents the employ of price cycles and Fibonacci sequence in fast trading. Trades are not only taken at levels 127 and 161.eight, but too at breakouts. And Fibonacci levels are fatigued for every bike. This strategy also exploit the full potential of value charts.

Above yous learnt what you are hunting, where to observe your prey, and how to bag some casualty steady and safe. Now, we will get afterward the BIG 5.

Ambitious Strategy

Look at the chart below, how many toll cycles practice you lot see?

Yes, 9 cycles. Now, alter your zigzag indicator parameters to 2,ane,1. How many curt-term price cycles do you run across now?

Yup, 41+ short-term price cycles. In reality there are many many more, just let’s not make it also hard. Each of these cycles is a Fibonacci sequence with a high-low-retracement-projection-reverse. Look at the chart below:

Now information technology gets complicated and wonderful:

1. The Fibonacci is drawn between points 1 and ii (in light blue)and marked on value charts the terminal high and low, one and two respectively. At present we have the levels and wait for the retracement which tin exist a wick, or a full candle. Higher up the retracement area is the white box marked past 3, and the green candle underneath touches that box.
2. The setup is prepare when the retracement candle is followed by a cerise candle in the direction of the trend. At present wake up.
3. The next crimson candle closes below the open of the green retracement candle, BUT it doesn’t affect value chart level half-dozen yet, nor the regression channels inner band. This is marked past the light blue rectangle. And so this is our offset breakout candle of this specific sequence. We enter PUT 10 seconds earlier the close of this candle, as the next candle WILL Exist Bearish, with 90% probability. This is marked by 3 PUT on the chart above.
4. The adjacent candle closes below our 100 Fibonacci level but DOES Not Touch LEVEL 127, which means it closed below the low of our current sequence. We enter PUT 10 seconds before the close of this candle because it will be followed by a bearish candle, or 2-3 bearish candles which will reach level Fibonacci level 161.eight. This trade is represented on the chart by one PUT.
5. The terminal bearish candle hits Fibonacci level 161.8 and value chart level -8 and likewise the outline of the cerise zone, so we place a CALL.

Within each price cycle between 3 points there are on boilerplate iii ITM trade setups during normal volatility trading conditions. And for this strategy it goes without saying that if yous don’t ‘feel’ the merchandise or something about the setup doesn’t seem right, don’t take it and wait for the adjacent one.

This strategy will produce around 100 setups per currency pair per day, so use it wisely, and be very sure to larn information technology by center before you bound in full steam.

The 3 strategies explained here work for all currency pairs, commodities, stocks and indices. However, fifty-fifty with the conservative strategy, a trader can produce first-class results if they trade v-6 avails, and take 2 high probability trades per asset per day.

As usual leave comment below if you have any questions. Happy Trading!

Click here to read my adjacent and terminal mail in this mini series

Further reading:

• Trading Binaries with the Fibonacci Tool