Dr. EUR and Mr. USD: When Strategy Faces Reality in Binary Options Trading

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Why Trade this System? One of the main reasons we chose the EURUSD as the underlying asset of choice to trade this system is because it is the currency pair that is traded the most in the forex market. Reviews of eurusd binary option strategy ensures that as a binary options instrument, it is available for trading all day long and will reviews of eurusd binary option strategy good liquidity, enabling you to get good pricing.

You will not have to buy costly bets that will have a greater risk than reward. If you are starting out in binary options tradingthis is a great way to start your trading career. Most binary options brokers do not provide charts for use in trading analysis, so you have to get the charts yourself. Since the underlying instrument is a forex instrument, you can easily get a chart by downloading an MT4 platform from any of the popular forex brokers like forex.

The strategy in question is to be implemented on a minute chart, and the strategy will reviews of eurusd binary option strategy use of the following indicators:. We also wait for the MACD lines to cross from negative to positive. We also wait for the MACD lines to cross from positive to negative. Once you have got a confirmation of the signals, the next step is to choose the binary option trade of your choice.

Make sure you identify the resistance points and keep your strike price below the resistance so you can be sure the price action will actually touch the price barrier you have set. In this instance, you can set your price barrier well below the nearest resistance so the price action has no chance whatsoever of touching your price barrier. Repeat the same trade sequence in reverse fashion if your signal indicates a reviews of eurusd binary option strategy outcome. Whichever trade you decide to take, you should at least have 4 different trade options to benefit from:.

Setting Up the System: This is a momentum indicator that shows the strength of the signal. This is a trend signal. Here are the trade rules for this strategy. Whichever trade you decide to take, you should at least have 4 different trade options to benefit from: Touch — Price barrier between market price and nearest resistance. No Touch — Price barrier below the nearest support.

Touch — Price barrier between market price and nearest support. No Touch — Price barrier above nearest resistance.

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This is not a purely mechanical strategy and needs some know-how to be used effectively. There is one indicator only and you need to know how to use resistance and support lines, need to be able to understand candlesticks and recognise trends.

This strategy is especially beneficial if you enjoy trading with short expiries of 10 to 20 minutes or so on USD and EUR. Using a Stochastic Oscillator, the clock and price action, this strategy helps predict when trend retracements might happen. Use the Stochastic on its standard settings of 5, 3, 3 and mark signal levels at 80 and 20 in order to confirm the signals that show on or near the specific lines. Draw horizontal lines on the charts. These are the resistance and support lines , which are also called horizontal trend lines.

Try working on higher frames of time such as 1 hour or 4 hour or even daily if possible as these prove more reliable. As an experienced trader you know you way around drawing these lines and knowing which ones are significant as well as why some are stronger and some weaker. The stronger resistance and support lines are usually those at the higher time-frame.

Where price action is thickest and candle bounces, the lines are often stronger. If you work on two charts at the same time, one on H1 and one on M5 you can see when the price is moving towards one of the stronger resistance or support lines. Watch the Stochastic and the clock to get a signal when the price is trending and seems to be moving towards a major resistance or support line.

The timing of the signals is the most important part of this specific strategy. So you need to look for a possible retracement when the clock is about to hit the hour or half hour. This means you could possibly have trade entries 48 times in each day, but the price does not always follow the pattern.

This is where the Oscillator comes in handy as it confirms the oversold and overbought levels and also highlights potential resistance and support and gives you the actual signal. The signals do not always follow the trend. Trading the retracement should happen when one of the resistance or support lines are reached and there is confirmation from the Oscillator. You can look at trading the retracement or work on the trend of the entries that occur once the retracement has taken place.

This strategy is not recommended for a beginner. There is a very short expiry and patterns are often neglected which could result in a bad trade. A good market entry and relevant expiry is crucial to have a profitable trade and time is only one of the factors.

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