Today we will share binary options trading strategies with you. This strategy will help you identify whether you want to trade binary and teach you how to properly trade binary options. If you prefer safe gaming to gambling, you need a strategy or tactic to help you master binary options and other trading activities. This is where our TSG team comes to the rescue. We offer you the best binary options strategies.
The main reason we want to learn about trading binary options is the fact that binaries simplify what we are already doing in Forex. At the same time, binary options allow you to make more money in the process. We are also controlling our risks.
Binary options are easy to understand. This is from someone with little to no experience in the area. If your favorite approach to forex trading is jumping into fast price movements and riding intraday trends as long as the momentum lasts, you can learn to trade binary trading options very quickly.
A lightbulb in my head turned on when I first discovered the binary. We thought we could do the same thing we did with Forex. But with 75%, even 95% winning trades, we just need to get the direction right. You don’t have to worry about how many pips your process can figure out.
And my friend is the real beauty of binary options.
What are binary options?
Binary options are a form of derivatives with fixed profit and loss. Binary options trading is simple. All you have to do is ask yourself simple yes or no questions. Is the price of the underlying asset worth more than the strike price on the expiration date?
So let’s start by understanding how binary options work.
Basically, you can trade binary options on any type of instrument. These are commodities (gold, oil or silver), forex trading currencies (EUR/USD, GBP/USD or USD/JPY) or stocks (Amazon, Tesla or Twitter).
So, the first thing you need to decide is which asset to trade.
Second, prior to submitting a transaction, each of these instruments has a current value at some point in time. How to trade binary options depends on your trading skills. It is used to predict what the current value will be at some point in the future. In other words, we need to use our skills to predict market direction. It determines your success in binary options trading.
Markets can only go up and down. You buy a call option if you believe its current value will increase in the near future. On the other hand, you buy a put option if you believe the current value will decline in the near future. Learn more about call options and put options.
Thirdly, you need to determine the most important aspects of binary options trading. The expiry time ultimately determines whether or not you are making a profit.
Binary trading options require you to accurately predict two things:
- Whether the market will rise or fall
- Prediction must be accurate for a specific time frame (e.g. expiry time).
If you are right in the direction of the market by the time of expiry, you make a profit. Being wrong means losing money. The way binary options work is that if you are right in the direction of the market, you get the percentage you initially invested.
Depending on the Binary Options Broker, usually 75% to 95%, in some cases up to 100% of the initial investment.
Assuming we are wrong on a trade, we lose the entire amount invested in the short term.
We’ve put together a great infographic highlighting the four steps on how to master binary options trading.
See below:
We will now focus on step 2, which is how to predict price movements. If you can figure this out, knowing how to make money trading binary options will be a piece of cake.
Now, before we give you an overview of how to make money trading binary options, it is always a good idea to bring a paper and pen and take notes on the best binary options strategy rules.
In this demo, we’ll look at the purchase currency.
Best Binary Options Strategies
The Trading Strategy Guides team is ready to share our 60 Second Binary Options Strategy with our beloved trading community. We wouldn’t want this strategy to make money. The mathematical model of this binary options trading strategy has a proven market edge.
The only tool you need to successfully trade binary options is the RSI indicator.
The RSI indicator isn’t good enough without the “correct” setup. To master the 1 minute time frame, you will need to tweak your RSI preferences a bit. We use the 3-period RSI to trade binary options profitably.
Not surprisingly, shorter RSI periods tend to make the indicator noisier than normal. However, it is more sensitive to immediate price action. Along with adjusting the RSI settings, we played around with overbought and oversold readings. We find that by using the 80 RSI reading for overbought conditions and the 20 RSI reading for oversold conditions, we get a more accurate daily trading signal.
*Note: Adjust your RSI settings before moving on to your binary options trading strategy.
Noise was removed by changing the RSI overbought and oversold lines. We are now ready to highlight binary options step by step guide.
Step 1: Find the instrument with the lowest last 50 candlesticks. Using 60 Second Chart (1 Minute TF)
The 1 minute binary option or 60 second time frame is the best chart for binary options trading. In other words, the best binary options expiry time is a 60 second time frame.
It’s a good idea to highlight a starting point on the chart. And the endpoint of the 50-second low you identified. Just draw two vertical lines on the chart through the start and end points of 50 seconds.
If you count 50 candles, you should always start with the current candle. Then move from the right side of the chart to the left side of the chart. If you count 50 candles, the starting focus will be 50 candles.
Going forward, you should use the RSI indicator and determine whether you are oversold or not.
See below:
Step 2: The moment the 50 candle low occurs, the RSI reading should be below 20.
Since this is a reversal trading strategy, the RSI indicator is needed to signal a bullish reversal. An RSI reading below 20 shows that the market is in oversold territory and could potentially reverse.
In the example below, the 1-minute EUR/USD chart meets both conditions.
You need 50 candles to go to the next level. Also, the RSI readings must be below 20 for this to happen simultaneously.
Added one more confluence factor to be satisfied. Combined with the above two conditions, you become a money maker binary options trader.
See below:
Step 3: Look for potential uptrends between the RSI indicator and the price.
When trading reversals you need to be as precise as possible. The more confluent elements favored, the more accurate the reversal signal.
What we need to see is the price continuing to move down after the 50 candles are confirmed. At the same time, the RSI indicator should be higher in the opposite direction.
If the price moves in one direction and the momentum indicator moves in the opposite direction, it means the prices are different. This represents a potential reversal signal.
Now it’s time to highlight how to find the right entry point for your binary options trading strategy.
See below:
Step 4: Buy a call option above the 50 candle low candle after the first candle
The first thing you need to do is mark the highest of the 50 candles as a horizontal line on the chart. The first candlestick above this high is your trading signal to buy a 60 second call option.
It’s that simple!
Once you have decided how much you want to invest and have chosen 60 seconds as the expiry time, it’s time to wait for a minute and start taking profits.
Step 5: Collect profit if the next candle is higher than the trigger candle
If at expiry time the price is higher than the price at which you opened the call binary option, you are in luck as you are about to check in a large payout.
For example, if you invested $1,000 and your binary options broker gives you a payout of 85%, it means you correctly predicted the outcome of your trade. An 85% payout on an initial investment of $1,000 gives us a profit of $850 in our case.
Use the same binary options guide to buy put binary options.
See below:
Conclusion – Binary Options Trading Strategy
Before you learn how to make money trading binary options, you need a good binary options broker. You can’t start a home run right away without making sure you have a binary options broker who wants you to be successful. Second, you need strategy-based trading skills to reveal market direction. This is very convenient as you only have 60 seconds to predict whether the price will go up or down.
It uses a heuristic approach to guess which way the price will move in the next 60 seconds. At the end of the day, traders are looking for a reliable binary options system that can help them make money on their trades.
A good binary options strategy is that system. Our team is made up of many experienced traders in the industry, including binary options traders who know how to make successful trades. We are ready to help you every step of the way.
