The Best Binary Options Strategy
For a high-performance trading on the binary market, a huge number of systems has been developed. They all use a variety of principles of analysis and let you obtain a certain amount of profit. But for beginners, it is rather difficult to understand the complex trading systems that require from the market participant a deep knowledge of finance and the intricacies of stock trading. To remedy this situation and make possible for newbies to have a stable income , we offer a list of the best binary options strategies, which are characterized by high efficiency, ease of use, and great versatility.
Let’s start with a simple system, based on the principles of technical analysis, which uses graphical methods of forming projections for profitable binary options contacts.
Trading with the trend level fluctuations
This type of system does not require specific knowledge from a trader and brings high trading result – up to 200% of the profits during the active trading week. The system has a low level of trading risks and allows dynamically increase the working capital, which is very necessary for the market participants at an early stage of trade.
It applies the principle of the classic technical analysis – the use of price levels of trend fluctuations for the formation of an effective forecasting. The market of any asset while moving within the trend carries volatile oscillations and generates the levels of assets value, from which, the quotes get cyclical reversals. This allows you to build a strategy with precise signals and high productivity. All what is necessary for a trader, is to closely analyze the market and with a help of a graphic line to define the levels of trend’s support and resistance from which you can draw up contracts.
In practice it looks as following:
We take a technological platform, which has all needed market graph analysis services. For example, a Binomo broker, a company that offers the efficient services of highest quality for trading, and minimum trading requirements.
From the list of graphical tools, choose “Line” and use it to connect the highs (to build resistance) or lows (support for the formation of the trend). Doing so, you get a strategy graphic template and can start trading.
Contracts are drawn up on the rebound from the level of the trend in the direction of its main movement. Here is a practical example of such a trading regime:
When using the trend resistance level, the trade goes by the same rules, but in the opposite direction.
Trading system in the areas of consolidation
This method of forming projections also relates to the technical analysis, but uses inherently different pattern of market fluctuations. The Consolidation Zone – a period of market price movements, which differs a narrow range of variation in asset value. The formation of such zones occurs with decreased activity of market participants – close to important price levels, then increase the pulse of market volatility or before the statistics release. In any case, the consolidation area let you create forecasts with high precision and efficiency.
How to apply the strategy in practice?
Choosing at the Binomo terminal the other graphical tool – «Rectangle» and use it to outline the area with a narrow range of market’s volatility. The signal for the execution of the contract will be the time of the breakdown zone delineated by you – we open a contract to the direction toward the breakdown of the graphic shapes:
For the DOWN contracts we use this signal:
This type of trading strategy has the efficiency of 95% and is the most efficient way to engage in binary trading.
The indicator strategy
The use of automatic indicators is probably the easiest way of trading for beginners. In this kind of analysis the customized programs are being used, that analyze the current market situation and generate the forecasts of market trends in the price movements of the underlying asset.
An example of a simple but very effective strategy
Here, we use a classic indicator developed by a recognized financial trading guru – Bill Williams – the Alligator. On the chart, this indicator is a combination of three colored lines with various settings. The advantage of this indicator is the simplicity of operation and precise shaping projections. The signal for binary options trading on this display looks like the intersection of the lines in a specific direction:
Just following Alligator signals you can make not less than 80% of profitable contracts in the options market, which will give the high dynamics of growth in trading profits.
A further example of the best strategies to binary options is a combination indicator strategy, which uses a combination of different types of indicators. Such approach maximizes the volume of information to process the contract and form an accurate prediction.
The Binomo platform has a set of following indicators which we place on a chart as standard analysis tools:
We do not change indicator settings – we will use analysis tools in their standard configuration.
The signal system of indicator strategy of this type looks like this:
Quotations broke through the line of MA indicator
The trend line on the RSI indicator is pointing upwards
The oscillator line crossed up on MACD indicator
Such a list of signals can make an option on the market UP:
Signals for DOWN trading contracts have the opposite direction of build. The combined indicator strategy lets to trade with wide range of maturity contracts – from 60 seconds to 15 minutes. Such an approach would be an excellent option for active beginners who are looking for a quick profit on the market.
We have presented to you a list of the best binary options strategies that are being effectively used in daily intraday trading. These systems are characterized by very high productivity and able to obtain the maximum profit in the market with simple signals and minimal trading risks.