A simple but working strategy for binary options. Binary options strategies. Working strategy for binary options - theoretical background

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Greetings, our dear readers and lovers of trading. The topic of our article will be a working strategy for binary options, which is based on divergence. In general, within the framework of this article, I want to tell you about an incredibly simple and working approach for binary options. However, even because of its simplicity, it does not lose its relevance.

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In essence, we will be trading through the appearance of a divergence. In my opinion, divergence is a simple but incredibly effective signal that can only be used in trading. Of course, you must understand that even such a high-quality signal will not work from time to time. However, a good divergence will work at least 70% of the time.

Who is this trading approach suitable for? It is suitable for novice traders who at the current time, for quite objective reasons, do not yet have a high-quality trading strategy in their arsenal. I want to make a reservation right away, what I will show you is not the ultimate working trading strategy for binary options. I would say that this is a kind of foundation, already on the basis of which you can create your own strategy. And here is another basis for the approach: .

Therefore, it will be quite possible to choose your own additional filters, which, in your opinion, will help you get better and more stable results. You must understand that your approach should be simple, logical and most understandable for you. It makes no sense to overload your strategy with a huge number of unnecessary tools. If we talk about indicator strategies, then 2-4 indicators are enough for your eyes to get a high-quality system at the end.

Moreover, you must be able to prioritize wisely! Yes, the strategy is the most important factor in determining the quality of trading, but it is far from the most decisive. That is, it is not enough to have a high-quality strategy, while you need to have psychological stability and follow the rules of money management.

That is, if you have even the most profitable strategy at first glance, but at the same time you do not follow the rules of money management, or every time you follow your emotions, then you simply will not be able to trade efficiently. This has already been proven by the experience of thousands of different traders.

Dealing with discrepancy

What is divergence anyway? I'm not going to give you long and tedious use of different terms, I simply don't think it's necessary. In simple terms, divergence is a process when the oscillator readings diverge from the current market movement. That is, if we see that, for example, the oscillator renews its maximum, while the market fails to do so at the same moment, then we have the same divergence. At its core, this is a very strong signal, which is a harbinger, if not of a market reversal, then at least a good rollback, which we can just use for personal trading purposes.

The first thing you need to understand when applying a divergence is that it doesn't appear often, especially if you are waiting for a quality divergence. However, the rarity of signals is more than justified by their accuracy. Which indicator will help us look for divergence.

The most popular representatives of the group of indicators that will help you look for divergence are: Stochastic, RSI, MACD.

Naturally, any novice trader will have a question, which indicator is better for these purposes?

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Generally speaking, it is impossible to single out a clear favorite who would not have flaws. I would say that here the question rests on a purely personal perception of each trader. It’s just that it’s convenient for one to use stochastics, and for another RSI. So you need to dance personally from what you yourself specifically prefer. Some people find it convenient to use one, while others need to use a completely different one. Personally, within the framework of this article, I want to show you how a working binary options strategy based on the search for divergence using the MACD behaves.

It was not for nothing that I called the MACD a truly unique indicator. The fact is that it has incorporated aspects of a trend indicator and an oscillator. From the oscillator, he absorbed the ability to indicate potential divergence. From a trend indicator, it shows us the direction and strength of the trend.

I think that you do not need to introduce this indicator, because it has long been known to all traders. This indicator has been used on the exchange for many years, while being an oscillator in its structure, it shows divergences in the market quite well. Now, let's talk in more detail and substantively about how to use our approach in practice.

Usage

Now I want to tell you about the approach I propose. We will use a five-minute interval for work. However, we will use options with an expiration time of 50-60 minutes. The fact is that in this way we will give the price some space.

That is, our forecast as a whole may turn out to be correct, but if we give too little time for expiration, then the price simply may not reach our target, so we use a higher expiration. As for the underlying assets, there are no restrictions, because divergence works on all intervals, all assets and all markets.

So, we open the M5 interval, set the standard MACD, and this completes the preparation of our working chart.

Now we are waiting for a potential divergence. If the indicator renews the maximum, but the market does not, then we consider vice versa. I understand that in words it is quite difficult, therefore, let's look at an example with you.

Here we see an example of a good divergence that would give us the opportunity to buy a call option. First of all, we can see that the market has updated its low, but the MACD indicator has not updated the low at the same moment, and a new low has appeared above the previous one. In total, we have a potential divergence, which has worked out very well. As I said, we buy an option for 50-60 minutes.

Actually, here are simple rules. I think that a beginner will not even have any special problems with this. I want to tell you right away that divergence does not appear in the market very often, even if you use small intervals. For example, on the M5 interval, on average, you can see 1 divergence per day if you use the MACD.

But I don't think it will be such a big problem, especially if you use multiple assets. For example, if you use all 6 major currency pairs in trading, then you will have 3-6 signals per day on average, which is quite enough.

conclusions

What I have given you is a fairly simple working approach, on the basis of which you can create your own personal trading system. Remember, you do not need to complicate your trading in order to achieve a result. Moreover, you need to make it as simple and understandable as possible for you. Well, I will say goodbye, and I wish you good luck in such a difficult task as trading!

Working strategies for binary options

Hello everyone, friends. It just so happened that we worked quite closely for some time with one well-known broker. It was an interesting experience that made it possible to study many nuances as closely as possible.

Now it is much easier to explain some point related, for example, with binary options.

Do you want me to tell you about working strategies for binary options? Yes, not a problem at all. I saw their development and put some of them into practice. Now I will describe in detail several strategies for you.

Working and profitable strategies

Is there the best strategy for binary options? The one that would help you regularly receive large sums of money in your bank account, buy a collection of vintage cars, a mansion on a tropical island ..?

Millions of traders around the world have been trying to find the answer to this question for quite a long time.

Because all of the above cannot be obtained with the help of the methodology of using indicators alone.

To do this, you also need the right attitude, the right attitude to risks, experience, knowledge and discipline - only with all this together you can constantly earn on binaries.

Be that as it may, you still cannot do without trading tactics. The best binary options strategies for each trader are those that he developed for himself based on his many years of experience and observation of the markets.

But until the moment when a beginner, and even a trader with average experience, has enough knowledge and practice to develop just such a one for himself, it will take a lot of time.

Therefore, the best option in this case is to use the experience of others as a base.

So, on the Internet, specialized forums and websites you can find hundreds of thousands of trading methods and systems. Let's be honest, most of them are 100% garbage.

But among this garbage there are also diamonds - tactics that work great in certain conditions, as well as those on the basis of which, with minor changes, you can create a system that will bring money.

To begin with, let's figure out what, in fact, is a binary options trading strategy?

Roughly speaking, this is a set of rules that must be followed when trading binary options or any other financial instrument.

The development of this set of rules ideally consists of 8 steps:

1. Defining the rules
2. Formulation (“translation” of the rules into a kind of algorithm),
3. primary testing,
4. Optimization,
5. Efficiency mark,
6. Trading on a real account,
7. profit tracking,
8. Improvement and creation of the final version.

According to professionals, profitable strategies for binary options must necessarily include clear rules for making transactions, clear money management rules, an indication of the percentage of profitable transactions for a certain period of time, as well as clear indications when a transaction does not need to be made.

One more thing to know about trading tactics: they are all based on a technical and/or fundamental analysis. Purely technical uses chart patterns (patterns), candlesticks, indicators, price action, support and resistance levels.

And the fundamental ones are based on macroeconomic and geopolitical events.

What does it look like?

A basic example of a good trading system:

Entry rules: Why buy "higher" or "lower"? Of course, the reasons can be listed for a long time, but a good strategy should clearly state that, for example, you need to buy “higher” because EMA 17 crossed EMA 43 from below.

Exit rules: When and how to exit a trade if the market is against you?

Attention!

Many brokers offer tools that allow you to close a trade before expiration time, and the ideal trading system should explain how to do this with minimal losses.

Money management: How much to invest in one trade and how many trades can be made at a time?

Just think: for example, if you have $1,000 and only make a $500 losing trade twice, you end up with nothing.

But if you buy options only for a certain small percentage of your total account, the risks become much smaller.

And, again: provide your results on its use on your real account for a sufficiently long period of time.

Where to looking for?

Among the hundreds of thousands of tactics on the Internet, you can find good ones, bad ones, and downright stupid ones. Reviews of the most popular of them can be found on our website.

In addition, look for practical advice on trade can be on the forums (especially in English).

And once again: in order not to fall for the bait of scammers, remember that numerous offers for various amounts of money to download a strategy that will always or almost always work and bring you millions without effort is a 100% scam.

You usually see these offers on one-page promotions offering ONLY NOW to buy yourself a ticket to wealth for $99 (or $49.99 or something similar).

At best, you will not get anything from such resources, and at worst, an absolutely meaningless set of rules, using which you will instantly lose your deposit.

• Study the strategies presented in the rating, choose a technique based on risk and effectiveness
• In the strategy overview you will find the rules for buying Call and Put options, recommendations and tips for work
• Test the technique on a demo account, find out if it suits you, do not rush to trade in real life!
• Need help? Write a question in the comments and get advice from experienced traders
• Start with a minimum deposit with a trusted broker, don't risk it! Observe money management
• Watch video instructions, use ready-made settings or create your own

The importance of a reliable trading system for making money on binary options is undeniable. But once again: strategy alone is not enough: you also need market understanding and discipline.

After all, no matter how thoughtful, high-quality and profitable it may be, you will never be able to make profit with it constantly and for a long time if you do not understand how it works, when it works, and how it should be changed depending on market conditions.

And no matter how you understand what is happening with the price, you will never be able to earn on a consistent basis if you take reckless risks.

All this means that testing other people's trading systems and understanding the principles of their work is wonderful and useful, but blindly following them and endlessly searching for the holy grail is not.

(If you don't know what the holy grail is, it's a playful name for a mythical trading tactic that works 100% of the time.) Testing someone else's work in practice (preferably on a demo account) should only be part of your learning.

Wild River for beginners

The Wild River binary trading system is a product of the combined experience of Binomo broker specialists and traders with whom the company fruitfully cooperates.

The technique was born thanks to the active communication of the company's investors, who shared their practical experience in options trading, and the operator's professional analysts created on the basis of this a fairly effective system that is popular with many users and brings the best possible results in the market.

This technical approach to market assessment and forecasting can be classified as one of the best strategies for beginners who want to trade on the platform of the popular Binomo broker.

So, the system for analyzing and generating forecasts uses only two main technical components, which, thanks to their settings and cumulative use, make it possible to clearly determine the end zones of price corrections and points of continuation of the trend movement.

Such indicators allow Binomo traders to get maximum trading results. The set of system analysis tools is as follows:

RSI with a technical period of drawing a working line of 14 and extreme levels on the chart of 60 and 40. This instrument has the widest possible range of technical indicators, which makes it indispensable in options trading.

Back to main information resource RSI should include the following data - the direct direction of movement of the trend of trading quotes, the relative strength of such a trend compared to the previous trading period, as well as zones of extremums, which provide indicators at which the price of the underlying asset can make a reversal of construction with the highest degree of probability.

Taken together, the set of indicators of the RSI indicator is a proven trading tool for opening a position in the binary market.

MACD indicator with technical settings of 24/52 oscillator periods and 9 signal frequency.

Attention!

This technical tool works on the basis of a combination of moving averages with clear settings and construction shifts that smooth out short-term fluctuations in indicators.

In this practical use case, the MACD is used as a means of determining the medium-term direction of the trend movement, which allows you to analyze the chart from a broader perspective. As a result, this maximizes profitability.

Trader level - this approach working with binary options is universal in terms of the professional level of the investor.

The application of this trading strategy on the Binomo broker platform does not require specialized technical knowledge, is simple and can be an excellent tool for a professional trader, do not forget about the high level of accuracy and efficiency of signals.

Optimal options - the technique is designed for trading within trading sessions, so the most acceptable contract format here is turbo, which are offered on the Binomo platform in conjunction with an expiration range from 60 to 300 seconds, and simple binary options that will help professional investors in the formation of highly profitable investment contract packages.

At standard use intraday methods, the optimal expiration period will be the range from 180 to 300 seconds for turbo options and from 5 to 10 minutes for classic types.

Evaluation period - in order to improve the dynamics of trading and, accordingly, the final performance, it is recommended to install the system tools on the chart timeframe financial asset 30 seconds or 1 minute.

In this range, the system generates the maximum number of signals for trading, which allows you to count on higher trading profitability.

Assets - in principle, the technique is quite universal and can be used on quotes of any financial instrument. However, according to the statements of traders-developers and users of the strategy, the best financial instruments for its use are the main currency pairs of the world's leading economies - EUR/USD, USD/JPU, GBP/USD, USD/CAD.

The rationale for this is simple - these assets have the highest possible volatility of building quotes.

The conditions for the CALL transaction are the following indicators:

1. The lines of the MACD oscillator carry out the current construction above the level of 0, which indicates the potential for the growth of quotations;
2. The moving average of the relative trend strength of the RSI indicator crossed the level of 40 downwards, after which it exited the oversold zone.

CALL deal

For PUT, the reverse signal generation mode is in effect:

• The MACD oscillator lines are currently building below level 0, which indicates that there is a potential for quotes to fall;
• The moving average of the relative trend strength of the RSI indicator crossed the level of 60 upwards, after which it exited the overbought zone.

PUT

Minuses. The system is not designed to generate trading forecasts that involve the use of high-yield derivatives of binary options contracts such as Range and One-Touch, which narrows the range of its use in the market.

pros. The positive indicators are - high level signal efficiency, good versatility, excellent trading dynamics that will suit most investors.

Specific advantages include such a moment - the system uses a minimum set of indicators, which allows it to be used as an auxiliary tool when working on any strategy of a graphical and indicator type.

Let's summarize. The Wild River system is another one of the strategies that shows very stable and high performance, which can be a real opportunity for any investor in the matter of increasing capital when trading.

Source: http://site/lionstone.ru/strategy

BO strategies

Binary options strategies are designed not only for beginners who have recently started their journey in the binary options market, but also for professional traders who have gone through a thorny path to make good profits.

The success of options trading depends not only on the choice of a broker, but also on the choice of the best binary options strategy.

Binary options strategies can be chosen based on the feedback and preferences of the trader, as well as the style of trading binary options.

The main thing is that initially you need to study and test binary options strategies without making a deposit and not losing a lot of money.

The best binary options strategies are rated five stars out of five by binary options brokers, which shows the quality of the article writing and the trading efficiency of other traders.

In order to correctly use the best binary options strategies and get high, as well as constant profits, you need to correctly determine what expiration period the trading strategy for binary options refers to.

The best binary options strategies are written in simple language so that novice traders can better understand the whole point.

Everything that is in this category is written with pictures and has a video, watch online in good quality or download for free.

The best binary options strategies can become an indispensable tool in trading with the right use of indicators.

Profitable binary options strategies are based on the financial knowledge of binary options and a lot of time spent by professional traders in testing and creating win-win tactics.

The best profitable binary options strategies were selected by professional traders in 2017 and the list continues to grow.

All profitable binary options strategies are relevant for 2018.

Using this strategy, the trader will have to use two indicators at once, but despite this, such a trading principle is quite simple.

Well, now let's move on to the indicators. As mentioned above, in order to use this trading system, we need 2 indicators, namely the Moving Average and Momentum, in addition, it is very important to display the Moving Average with a period of 20.

To understand the basis of this strategy, you need to look at the screenshot above. The main source of receiving signals is the Moving Average (with a period of 20), immediately when the price level crosses it, there is a chance to purchase an option.

For example, when a candle pierces the Moving Average from top to bottom, then you need to buy a PUT option, if the opposite happens and the candle goes against the Moving Average from bottom to top, then you should buy a CALL option.

As you can see, there is nothing complicated in this trading method, but that's not all.

The second indicator that we will use is Momentum, and it serves as a filter to get better signals.

If its curve turns out to be below the zero level, it follows that the signal that we received for buying a PUT option is confirmed, it is logical that if everything happens the other way around and the indicator curve turns out to be above the level of the mark - 0, then the signal to buy a CALL option is correct .

advantage this method is that the strategy has a good accuracy in determining signals for trading.

This strategy gained this advantage thanks to the Momentum filtering indicator, its use helps to sort out a huge number of bad signals.

The second huge advantage of this strategy is that it allows you to work with various underlying assets and using any time interval.

All this makes it universal and allows traders to use it with almost any binary options.

The basis of this strategy is the simplest analysis of the asset chart using probability theory.

Attention!

When using this strategy, none of the analyzes, namely fundamental or technical, will be used, and indicators will not be used.

Any trader can use such a strategy, but it is best, as in all matters, to first practice by trading using paper or a demo account.

There is one big inconvenience, which consists in the fact that a trader may need a huge number of charts at different time intervals.

Let's take a simple live chart of any asset and notice that a few red candles are always replaced by green candles no matter what, and green candles are replaced by red candles in turn.

When the same 3 candles appear, for example, bullish ones, the chance that a candle of the opposite color will appear increases. It is expected that this will be a temporary correction, a pullback or a final trend change.

According to statistics, a candle that has the opposite direction is formed on the 4th, 5th or 6th, but you should always be aware that sometimes it happens that the chart can show up to 11 single-color candles and that is why it is very important to analyze the history of the chart's behavior in situations like this.

The use of the statistical method along with the Martingale strategy is gaining more and more popularity among traders, namely, to make up for unprofitable investments by increasing the amount of the next investment.

Of course, in the event of a candle in the opposite direction, the trader can count on a successful ending.

For example, let's take a chart with a time interval of 15 minutes (1 candlestick - 15 minutes), the currency pair is NZD/USD.

When 3 red candles (bearish) appear in our field of vision, then 1-2 minutes before the 3rd red candle closes, we should buy a reverse direction option, namely “CALL” (an article about CALL AND PUT options), with a lifetime of 15 minutes.

It is very important to take into account the life of the option, because. 1 candle is equal to 15 minutes, then the life of the option should also be equal to 15 minutes.

After waiting a bit, we can watch 3 more green candles (bullish) appear, and with the help of probability theory, we expect a 4th bearish candle.

Here, as well as in the case above, we need to buy an option in the opposite direction with the same timeframe (15 minutes) in 1-2 minutes, but the price continues to grow, so we continue to buy PUT options on the 5th and 6th candle, applying the Martingale principle and as a result, on the 6th candle, we successfully exit with a victory.

As you can see for yourself, such signals are often formed and with the help of probability theory we can earn more efficiently.

P.S: in order to successfully use everything read above, you need to properly study the Martingale principle, as well as practice applying statistical method in practice, namely using a demo account.

Source: https://www.options-review.com/help/strategii

Binary Options Earning Strategies

Trading on binary options is interesting for traders, first of all, because it allows you to get a fairly high profit quickly and easily. Making money in the options market is easier than in other financial markets.

One of the main components of successful trading is correctly chosen effective binary options trading strategies.

Clear and well-reasoned earning strategies will allow not only avoiding risks, rationally managing investments, but also increasing profits.

What is it for?

Binary options trading strategies allow you to limit the risks when making transactions, as well as master all kinds of financial instruments.

The main goal of effective trading strategies is to manage risks and investment volumes as completely as possible.

Binary options trading strategies also cover a variety of transaction parameters, such as investment and option maturity, as well as asset types.

Strategies for beginners who are just trying their hand at binary options trading will help you take your first steps in the most dynamic financial market.

TS based on the Stochastic indicator (stochastic)

The path of a successful trader is full of financial adventures and many hours of struggle with charts and formulas, thousands of thousands of seconds in front of the monitor.

Small and big victories, learning from failures, millions of killed nerve cells, endorphin explosions and adrenaline rushes ... And yet, it is quite possible to save nerve cells and shorten your path to success!

Attention!

You need to use the experience of "senior comrades", trading experts. In addition, there are already tested trading strategies.

Let's continue talking about performance trading strategies trading on indicators. No experienced trader would recommend blind trading. There is a whole set of tools that you can and should use. Everyone has their own, since there is a choice.

But there is a certain "classic" set of trading platform indicators. They need to pay special attention, but it is better to study, and from time to time return to the basics of analysis.

Stochastic indicator refers to instruments technical analysis market. Strictly speaking, this is an oscillator.

The Stochastic is measured as a percentage and shows the position of the current price relative to the price range in the past.

That is, the indicator shows the difference between the closing price of the current period and the price of previous periods within a given time frame.

It turns out a kind of "screenshot" of the price - constant comparisons of the price range in different episodes.

This feature affects the accuracy of the indicator, you need to take into account the settings of fast (small short intervals) and slow (long large intervals) timeframes.

Select a candlestick chart and add it from the tab with Stochastic indicators. In the chart for the asset, we highlight the gap on the scale between the value of 80 and 20.

Pay attention to the red and blue lines. It is these two bands that are important for the analysis of binary options. And now we catch the best moment to open a profitable trade.

If the lines intersect above 80, we sell, and below 20, we buy. The line crossing point is the trade entry point.

The optimal time interval for Stochastic is 15 minutes.

Let's return to the features of the Stochastic indicator, its parameter settings. Those same nuances about belated data and vice versa, sometimes early (the principle of comparing prices with different periods).

Indeed, one Stochastic is good, and two is even more profitable.

We open the Stochastic on the chart twice, but be sure to set different settings - we “catch” a profitable interval.

Parameters of one Stochastic - with "late" settings (long timeframes), the second - "fast" (short timeframes).

Thus, the data of oscillators more accurately show the moment of entering the market. We advise you to use the traditional pair EUR/USD, timeframe 15 minutes.

Two Stochastics reduce the risk and double the accuracy of the entry signal.

The moment to open a trade is the intersection of the red and blue lines of the oscillator. Let's take the values ​​for the slow Stochastic - 21.9.9, for the fast (short intervals) - 9.3.3.

The intersection of the cherished indicator lines is associated with overbought and oversold ranges. These ranges tell us when to invest in a Call (Up) binary option, and at what point to buy a Put (Down) option.

A sign of a downward price trend will be a signal from the "fast" Stochastic. This version of the indicator should be in the "overbought" zone (from 70 to 100), in which case the blue line will cross the red line from top to bottom. This will be a good entry point to the market.

We look at the “slow” oscillator, if it confirms the entry, we buy the Put (“Down”) option after 3-4 candles (45-60 minutes).

Another variant of lines crossing, fraught with a profitable trade in the "oversold" range (from 0 to 30). This time, on the "fast" Stochastic, the blue line should cross the red one already from the bottom up.

Now it is necessary for the "belated" brother Stochastic to catch up with the "fast". The slow indicator should also fall into the "oversold" zone.

As soon as the second Stochastic caught up with the zone from 0 to 30, we look at the lines: the blue one should list the red one from bottom to top.

So, two indicators have confirmed the entry, we choose the right signal for the deal, - we buy the binary option Call ("Up") in 3-4 candles (45 - 60 minutes).

Attention!

The strategy of "safety net" confirmation of the signal by the second indicator eliminates unnecessary risk and - which is nice - increases profit.

In binary options trading with Stochastic, you can try other intervals, other currency pairs.

In addition, a strategy involving the Stochastic indicator can be combined with other indicators (for example, the MACD indicator).

There are nuances of choosing investments in the indicator strategy. Just do not forget that every experiment, every test is connected with money, with your money, by the way.

Parabolic SAR (Stop and Reverse - literally translated as "parabolic ... stop and reverse." How to understand this strange combination? Let's figure it out.

"Parabolic" is just parabolic. The fact is that Parabolic SAR builds a parabola on the chart, or rather, a whole series of “semi-parabolas”. And by the way, if you are already used to thinking that the indicator is lines, Parabolic SAR is already dots. That's it! Breaking patterns!

Like other indicators, Parabolic SAR is placed on the price chart.

SAR - “stop and reverse”, the name indicates the property of the indicator to indicate a new trend at the time of the reversal. This is its important difference.

This intricate indicator was created by the developer of another indicator with the interesting name RSI (Relative Strength Index) - US analyst Wells Wilder.

And this brainchild of a former navy technician has become popular on FOREX with experienced traders, and also brings its benefits to the binary options market.

This indicator is exclusively trendy, and moreover, it is “sharpened” for the moment of the price trend reversal.

“Parabolic” literally breathes in the back of the trend, it is not worth using it in a sideways movement and with low volatility.

Parabolic SAR is similar to a moving average, but the Parabolic moves with great acceleration, changes its position: when the Bulls (Up trend) move, the indicator points are below the price, and when the “bearish” trend (Down Trend) is moving, they are higher.

As soon as the price crosses the Parabolic SAR, the indicator immediately reverses - the Parabolic is placed on the other side of the price.

These are the moments for buying Call and Put options. The “rest” time of the price before the upward jerk is a signal for Call. And after a respite, prices are at the top of the chart, on the eve of the downward descent - the Put time.

The reference point is the maximum or minimum for the previous period. The reversal of the indicator is a signal of either the end (transition to correction or flat) of the trend, or its reversal.

Parabolic is very good at marking exit points. Long positions should be closed when the price falls below the technical indicator, and short positions should be closed when the price rises above the Parabolic SAR.

That is, it is necessary to track the movement vector of the Parabolic SAR and keep positions open only in the direction of this movement. The Parabolic is often used as a trailing stop line.

If a long position is opened (the price is above the Parabolic SAR), the indicator goes up regardless of the direction in which prices move. The amount of price movement determines the amount of movement of the Parabolic SAR.

The calculation of the Parabolic movement at a glance will be clear, perhaps, to connoisseurs, experienced traders.

Here are the conclusions of the Parabolic SAR calculation. The indicator value increases if the price of the current bar is higher than the previous one in a bull market and vice versa.

In this case, the Acceleration factor will double, which will cause the Parabolic SAR and the price to converge. And the indicator approaches the price, the faster, the faster the price rises or falls.

Parabolic SAR is accurate and not the easiest tool to use. For greater understanding and additional insurance, traders include in their strategy not only the Parabolic, but also other indicators.

And in this case, Parabolic SAR works successfully and brings considerable income. There are well-known strategies for sharing indicators Parabolic SAR and Stochastic, Parabolic SAR and DMI, Parabolic SAR and MACD, Parabolic SAR and ADX.

Let's dwell on the connection with the MACD. In this strategy, the trader sets both indicators with default values. On the price chart with the indicators set, you need to monitor the intersection of the lines (McD) and the location (Parabolic).

So, if the MACD crosses below the middle line, and the Parabolic SAR is located under the candles, it went down - the MACD forecast is confirmed. It's time for call options!

Attention!

In the case when the MACD shows a crossover much above the zero line, and the Parabolic is full of dots at the top (up to 3 digits) above the candles, then it's time to buy Put.

In general, these indicators are like two pairs of boots, and a profitable pair at that. It is only important to choose the right expiration time.

So, this is an indicator for strong trends, it is better not to use this indicator with a sluggish sideways movement.

There is a bright trend - expose Parabolic SAR. And in general, there is little good in lateral movement.

This indicator is similar to the moving average, but much more resourceful, it has more acceleration, moreover, it is customizable, Forex traders love it very much for this, it is a good team player!

Its built-in calculations, sufficient complexity - all this works favorably with other indicators, which are more obvious and easy for a beginner to understand.

It is quite difficult to start making money on binary options, especially if you are faced with stock trading first. To make a profit, a trader must be able to analyze the situation, determine the moments for entry, and so on. It's almost impossible to learn this on your own. However, there are strategies to help with this. We will introduce you to one of them right now.

TOP 3 Forex brokers in the world:

The first one, with a period of 5, will be colored red. The second - in blue (period 10). Let's make the third line green and set the period to 15. It's also important that the method of all three lines be set to Exponential (that is, EMA).

Now let's deal with the Stochastic Oscillator. Here it is even easier, since you will have to apply the indicator only once. When choosing, we set the parameters 6,7,3.

After doing these simple manipulations, your chart will look like this.

This is what the “Waterfall” looks like in the MT4 terminal. You can also use online charts or charts of brokers, which, if they provide the ability to use indicators. For example, IQ Option):

Or in Olymp trade:

Expiration dates, timeframes and eligible assets

For trading with the waterfall strategy, we recommend choosing an expiration time of 15 minutes, respectively, the candle timeframe must be chosen from M5. Both indicators can be proportionally increased. For example, when concluding transactions for 1.5–2 hours, we select the duration of a candle for 30 minutes (M30).

It is preferable to use only currency pairs for trading with this strategy, and only during the European or American session, when their volatility is especially high.

Deal opening rules

Now let's analyze when Stochastic and EMA signal us that it's time to enter a trade. Let's start with the option up.

In fact, the conditions for entering are absolutely simple, so even beginners should not get any confusion.

In the screenshot we have shown one of the examples. The candle, which is highlighted with a red vertical stripe, is a signal that indicates that you need to prepare.

The first is the crossover of the moving averages. First, the MA with a period of 5 should break through the line with a period of 10. And after the Moving Average with a period of 15, the average should be broken with a value of 10. This is exactly what you see in the screenshot. However, this condition is not enough. So let's move on to the second point.

Keep an eye on the stochastic oscillator. If its lines are pointing up (even if it is close to the overbought zone), we buy a bull option with an expiration time of 15 minutes. However, before that, you should wait for the closing of the candle on which the signal appeared. As you can see, in 15 minutes we would have received our profit.

A down trade is concluded with opposite signals.

Accordingly, the following conditions must be met:

• The lines should cross each other in the same order as when making a deal for an increase, but only go down;
• The lines of the Stochastic indicator are also directed downwards.

Following these 2 points, you can get almost regular profit.

An example of a deal with a broker

We discussed all the subtleties and nuances. Now let's show the effectiveness of the strategy in practice. Of course, one cannot judge by one successful transaction. However, you can always test it yourself.

The 5 minute chart shows the EURUSD currency pair. We see that a signal is being formed to buy a Put option. Well, let's not doubt and trust. We go to trading platform broker, select the desired asset, set the investment amount and the expiration time of 15 minutes. As soon as the candle closes on the chart, we open a trade.

Now you can watch other assets waiting for a signal, or take a break from the monitor and moving averages.

Over time, we take the profit. We see that this transaction turned out to be quite risky and we were at a loss for almost all the allotted time, but at the end of the "Waterfall" did not let us down and we got our profit.

The Waterfall strategy really works. However, do not forget about discipline. Do not enter into more trades than you planned and do not invest in trades more than 2% of the deposit amount at a time.

Be that as it may, you still cannot do without trading tactics. Most best binary options strategies for each trader, these are those that he developed for himself based on his many years of experience and observation of the markets. But until the moment when a beginner, and even a trader with average experience, has enough knowledge and practice to develop just such a one for himself, it will take a lot of time.

Therefore, the best option in this case is to use the experience of others as a base.

So, on the Internet, on specialized forums and websites, you can find hundreds of thousands of trading methods and systems. Let's be honest, most of them are 100% garbage. But among this garbage there are also diamonds - tactics that work great in certain conditions, as well as those on the basis of which, with minor changes, you can create a system that will bring money.

To begin with, let's figure out what, in fact, is a binary options trading strategy? Roughly speaking, this is a set of rules that must be followed when trading binary options or any other financial instrument. The development of this set of rules ideally consists of 8 steps:

• Defining the rules
• Formulation (“translation” of the rules into a kind of algorithm),
• primary testing,
• Optimization,
• Efficiency mark,
• Trading on a real account,
• profit tracking,
• Improvement and creation of the final version.

According to professionals, profitable strategies for binary options must necessarily include clear rules for making transactions, clear money management rules, an indication of the percentage of profitable transactions for a certain period of time, as well as clear indications when a transaction should not be made.

One more thing to know about trading tactics: they are all based on technical and/or fundamental analysis. Purely technical uses chart patterns (patterns), candlesticks, indicators, price action, support and resistance levels. And the fundamental ones are based on macroeconomic and geopolitical events.

What does the best strategy look like?

A basic example of a good trading system:

Entry Rules: Why Buy High or Low? Of course, the reasons can be listed for a long time, but a good strategy should clearly state that, for example, you need to buy “higher” because EMA 17 crossed EMA 43 from below.

Exit rules: When and how to exit a trade if the market is against you? Many brokers offer tools that allow you to close a trade before expiration time, and the ideal trading system should explain how to do this with minimal losses.

Money management: How much to invest in one trade and how many trades can be made at a time? Just think: for example, if you have $1,000 and only make a $500 losing trade twice, you end up with nothing. But if you buy options only for a certain small percentage of your total account, the risks become much smaller.

And in the ideal case, the author should demonstrate his creation on video or in the form of visual screenshots. And, again: provide your results on its use on your real account for a sufficiently long period of time.

Where to look for working binary options trading strategies?

Among the hundreds of thousands of tactics on the Internet, you can find good ones, bad ones, and downright stupid ones. Reviews of the most popular of them can be found on our website. In addition, you can look for practical trading advice on forums (especially in English).

And once again: in order not to fall for the bait of scammers, remember that numerous offers for various amounts of money to download a strategy that will always or almost always work and bring you millions without effort is a 100% scam.

You usually see these offers on one-page promotions offering ONLY NOW to buy yourself a ticket to wealth for $99 (or $49.99 or something similar). At best, you will not get anything from such resources, and at worst, an absolutely meaningless set of rules, using which you will instantly lose your deposit.

In the strategy overview you will find the rules for buying Call and Put options, recommendations and tips for work

Test the technique on a demo account, find out if it suits you, do not rush to trade in real life!

Need help? Write a question in the comments and get advice from experienced traders

Start with a minimum deposit with a trusted broker, don't risk it! Observe money management

Watch video instructions, use ready-made settings or create your own

The importance of a reliable trading system for making money on binary options is undeniable. But once again: strategy alone is not enough: you also need market understanding and discipline. After all, no matter how thoughtful, high-quality and profitable it may be, you will never be able to make profit with it constantly and for a long time if you do not understand how it works, when it works, and how it should be changed depending on market conditions. And no matter how you understand what is happening with the price, you will never be able to earn on a consistent basis if you take reckless risks.

All this means that testing other people's trading systems and understanding the principles of their work is wonderful and useful, but blindly following them and endlessly searching for the holy grail is not. (If you don't know what the holy grail is, it's a playful name for a mythical trading tactic that works 100% of the time.) Testing someone else's work in practice (preferably on a demo account) should only be part of your learning.