Purchase binary options trading orbestos31 comments
Binary option trading app tips
Having a working strategy is one thing, but knowing how to use it is another. But you will have to practice and spend time to master it before you consider trying it out on your live account. I only zoomed in for the sake of the example. Stochastic and RSI are also visible. The Fibopiv is not entirely visible. How to spot possible entries This is a very simple strategy, just a few indicators. What we are looking for is confirmation! I like confirmation, not anticipation.
I recommend that you start with just currency pairs to begin with. Monitoring too many charts is confusing and stressful and you will miss out on trade opportunities. Okay, let us go through all the necessary steps and look at a few pictures. Notice how the candles have been making higher highs over the 50EMA. Also the Pivot line fibopiv has become a solid support. Stochastic and RSI are oversold. Arrow was my entry for a Call, star was my expiry.
A winning trade I took that day. The vertical yellow line is for showing that at the moment I was looking for an entry I saw Stochastic Oscillator and RSI hitting overbought levels. The high is also lower than previous high, see vertical red line! As you can see the first S1 could not hold so I had to confirm whether S2 would be stronger or not. Then I changed back to 1M chart. See next picture below. Now you can see the Support 2 clearly!
Notice how bullish candles tried to break above it but failed. Arrow is my entry and the star is the expiry. The expiry time for this trade was 30 minutes because I was worried that the price would try to break above support one more time before getting pushed back down. As you can see it did go for a second attempt on breaking the S2. For this trade everything was in accordance with my strategy. The Stochastic and RSI being over the overbought levels, I spotted a lower high, support line held and candlesticks closed under the support line indicating strong resistance.
The good, the bad and the ugly The good part is of course, as I mentioned earlier, all the confirmations that this strategy provides the trader with. Confirmation leads to confidence and a confident trader makes less mistakes!
On the bad side, not getting that many trading opportunities can be a problem for some traders. The most important thing is executing a trade with correct analysis. However, not getting many opportunities can lead to impatience, which can force an inexperienced trader into trading without confirmation.
This can turn…hmm… Ugly. In conclusion , this strategy can work for you if you are willing to put some time practicing your charting skills! However, by mastering a working strategy and sticking to your rules you can at least be sure that the majority of your trades will end in the money. As I advised you in my last post you can speed up the learning process by keeping a diary. Let me know if you have any questions.
See you in my next post! Go to the 15M chart and study the chart. First confirm the trend. If it is an uptrend then you should clearly see higher highs and higher lows. You are better off not trading until a clear trend is observed! When a trend is confirmed we wait for a retracement. The goal is to catch the end of the retracement and get on the trade in the direction of the original trend.
If we are to catch an uptrend, we obviously want the RSI to touch or go below 25 and the Stochastic to touch or go below We think the retracement is about to be over because Stochastic and RSI are telling us that.
We need yet another confirmation to proceed. These are for spotting our entry. Here is another example: