Binary options 5 minutes strategy
This strategy that works is based on three most popular […]. How to setup the chart Timeframe: These are drawn automatically and we only need to pay attention when an arrow appears. This strategy is based on tracking pinbars candles which have their wick at least 2 times longer than the body. This strategy is recommended for currency pairs, but it might as well work with other assets.
With these indicators we can enter a trade at the beginning of it and then ride with it. How to setup the chart […]. You may have seen this indicator before as it is usually a part of more complex strategies. This is a very thought out strategy which is among my favorites and it brought me lately interesting profits. Trading the daily breakouts is a widely used concept in forex trading, and of course, many are trying to implement it into binary trading as well.
By drawing key support and resistance levels on the chart, you look for breakouts to open a short or long position. If you are trading daily binary options, it might work the same way but not if you trade short term.
For trading 5-minute or minute binary options, you need to approach the charts differently to identify the most recent highs and lows. Therefore, we need the custom indicator Support and Resistance Barry in combination with the Value Chart. Placing 5-minute trades is probably one of the most popular trading styles, together with second trading. To set up their strategy, most traders uses the Meta Trader 4 platform as it offers 5-minute timeframes and allows for custom indicators. The best time to perform the strategy is during strong trends as we want to trade with the trend and not the countertrend.
Using 21 EMA helps you visualise the current trend and place your trades accordingly. It is also important to check the economic calendar to spot major events that can move the price in one direction on another. Thus, you can spot a strong move before the close of a 5-minute candle on the MT4.
You can place your trade at the close of a candle or 1 minute before the close. To trade a Call signal, we look for up trends and breaks in the resistance. It is up to you to make the strategy suit your style. As I mentioned, I prefer using the strategy in trending markets and placing trades on retracements. To identify the trend, I am using an EAM indicator. Some of you may prefer using two periods and waiting for crossings.
You can also put Fibonacci levels into action to spot retracements. In trending markets, you are buying with the trend: In fact, usually prices are ranging, and if you want to use the strategy during all trading sessions, you need to learn how to trade in a ranging environment.
For beginners, it might seem more confusing with the price constantly moving up and down, but like in every other process, it takes practice. In ranging markets, the price bounces between the support and resistance levels. Your aim is to place trades when the price is in the overbought and oversold zones. I have used many different indicators, including alarms and arrows popping all over the chart, and the truth is that if you focus on the indicators only, you will be lost.
You should focus on the price action and learn to identify retracements, then you have a better chance to be on the winning side. It is not necessary to follow my signals precisely.