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Strategy trend trading binary options
It is known that the market price of any asset can be in flat or in the trend. Many traders and analysts believe that to predict further price movement easier when on the graph there is a trend, even have an expression: "the trend probably will continue to happen than the reversal." It demonstrates the belief of many bidders that are more likely to development of current trends than a change of direction of the price movement.
Training programs on trading for beginners vying to tell the disciples that to enter into a trade only in the direction of trend otherwise the losses will be inevitable. Can't say that I fully agree with this point of view, but novice traders should really start to learn binary options strategy in the trend.
If You are just beginning to get acquainted with the market, I recommend to start download the free introductory course and be familiar with it:
the Introductory part
To be against the market is quite dangerous, as who knows when the trend will begin to unfold in the opposite direction or at least move into a flat. There are counter-trend systems and methods for trading a flat market, but start with them for "binary" does not suggest, nevertheless, that is not the simple options that you can use for system trading.
You should first determine exactly how to identify a trend in the market, and to estimate its direction and strength. Of course, you can try to visually assess the current situation, but this option can't be called objective, as well as promising. However, in a short list of the most popular ways to determine the current trend, this method still goes:
• visual assessment of the market situation;
• the use of a technical indicator (or indicators);
• the use of lines, channels, fractals.
There are other ways to deal with the market situation, but they're much rarer, for example, measuring rates after equal time periods and track changes in the dynamics of the course. Won't worry so much about such vices, because even a simple Moving Average indicator (MA) would be excellent.
According to the degree of the slope of the line MA indicator, we will be able to understand whether the current market trend. Imagine that on the chart a horizontal line. If MA is slightly inclined from the horizontal, the pronounced trends in the market, and if the slope is significant, then we can talk about the trend:
Strategy trading binary options with the trend allows you to make trades that are aimed in the direction of tilt of the indicator. For this reason, buying a contract any difficulties with the choice of the direction of the transaction should not occur.
Traded binary options on the trend
So, how to determine a trend in the market of binary options we now know, is to talk about the rules of the agreement. First, when the market has no pronounced trends (strong tilt MA horizontal), we did not take any action. Secondly, when there is a trend, waiting for the right moment to purchase option.
As a convenient moment for the conclusion of the transaction is the correction of market price of the asset:
Recall that the correction on the chart looks like the offset prices in the opposite trend direction. It is an opportune moment to buy a binary option with the trend, as illustrated:
Win-win strategy is a very effective way to trade binary options.
Purchased "BINAR" should be 4-6 candles chart in which the situation is analyzed. For example, if we had chosen timeframe 1 candle = 5 minutes, the period of expiration would leave about 20-30 minutes. This is enough time, that would be a short-term correction is over and the price resumed the trend.
What if the correction would turn into a full market reversal? It is certainly possible, but do not forget that any trading strategy there are losing trades. In addition, the development trend of the adjustments is likely to be not enough, but the change in trends can only be one. The whole principle of this strategy is based on the assumption that the probability of trend continuation is higher than the probability of change.
|Category: Binary options | Added by: (07.11.2017)