In this video, you will know how to earn money on binary options, even if you are a novice trader. The simple intraday strategy “Europe” represents a system of calm trading with two basic indicators. Let’s choose four European currency pairs and start to trade.
This is a trend strategy, we trade on timeframes M1 and M5 and use two technical indicators — Bollinger Bands (BB) and Stochastic. If the Bollinger Bands are horizontal, it confirms the flat. The breakdown of BB will be the binary signal. Stochastic will show the balance between bulls and bears. If the predictor is above 80, this is the end of the uptrend; if below 20 — the end of the downtrend.
Pay attention to the several important moments. Open the option on the next candle after the signal. Expiration time has to be not less than 5-7 minutes in all timeframes.
- CALL-option. The price breaks the middle line of the BB from down to up or moves away from its lower border.
- PUT-option. Stochastic RSI goes down from the point of oversold. The price breaks the middle of BB from up to down or stays below the upper limit.
Recommendations for traders
- If Stochastic starts to move, you can open the trade.
- Apply both indicators and don’t depend on the indications of only one instrument, especially when it comes to trading on the dynamic Forex market. The stock market is usually calmer, however, there is always the risk of a rapid trend reversal.
- Don’t open the options 30 minutes before and after the publication of important news. It is better to close the current trades. Use the economic calendar to monitor the market situation.
The strategy “Europe” suits conservative intraday scalping on the stable market. You can configure the trend indicators according to the level of volatility. All you need is to identify the direction of the trade and stay out of the market during the flat periods.