«Hubba Hubba Style»
Often, the thoughts of the veteran traders on forums are seriously surprising. Some sufferers don’t see a daylight, deprived of friends and family, but they always know the EUR/USD rate, even up to the fifth sign. However, sometimes the collective conscience is able to produce something benefiting. So there was a working strategy with binary options, known by the name of the creator as the «Hubba Hubba».
This trading strategy is almost unique, because the developer has made its creation based on his view of the market and its own trading experience. Among other things, the author himself had used it for over a year, and, obviously with a success. If you believe in this the trader he had developed it had no a single day off. All the year through, all his free time, he spent on a thorough study of graphs. Now let’s find out the results.
With this system, the key is not the fulfillment of the formal rules, and competent interpretation of his own ideas, which is older than the market itself. The essence of it is reduced to a certain point, when the buyer has already bought up all that is possible, or vendors sold everything they had available. In practice, this makes it possible to determine the point of bifurcation, when the trend changes direction.
The strategy includes two components – flat and trend. During the period of directional strong movement, the market has and increased inertia, so it is possible for the signal to be rather delayed. As a result of the foregoing, it is necessary to choose the longest period of expiration for a trend. Regarding the flat signal, on the other hand, it worked through almost instantaneously, not longer than a candle. Combining the two methods deprive the strategy of “narrow” places, giving an invulnerability to the system for virtually any market conditions.
The applied indicators
1) «Support and Resistance (Barry)» – this indicator is responsible for the reflection on the price chart of the observed levels of “support-resistance”, it is based on fractals of Williams.The emergence of a new fractal implies the creation of a new level, the replacement formed the previous fractal. Due to the specificity of the indicator, the calculations can be changed during the last three candles.
2) «VCustom3» – the indicator in a separate window displays the dynamics of the stochastic indicators over the bar. It is, in fact, is an analogue of a standard stochastic, but a bit altered. Firstly, the indicator visually indicates the transition overbought or oversold levels respectively, green or red. Secondly, it adds sound notifications, informing the trader about the arrival of a signal to buy or sell.
3) »aFFCal» – this indicator shows the time left before the arrival of the next news. Many traders prefer to stop the trading at this time, so you get the opportunity to refer to your trading plan in advance mode.
4) «EMA» – is an exponential moving average, which has a period equal to 21. In contrast to the simple moving, this new data gives a greater importance. That allows you to quickly respond to rapid price changes, reducing the time delay of signals.
5) «Magnified Market Price» is a complementary indicator, which displays in the chart of the current price of the instrument. It’s just an auxiliary indicator showing the current price.
Rules of entry into position (approximate)
1) Wait for notification of the «VCustom3» indicator. It informs about the opening of new trade opportunities with the help of the MT4 alert . Usually this is not a signal to immediately purchase an option, it is just being only a warning about the possibility of the transaction. From the appearance of the alert, and before entering the position, it may take a few seconds or even minutes, time depends on the speed of change in a security’s price.
The indicator goes through the top overbought mark, preparing to acquire a PUT option. When lowering the value below the oversold boundary, the signal goes to the CALL-purchase option.
When the alert appears, you should expect closing of the current candle.
2) When you open a new plug wire test – the price should be located above the moving average when purchasing a PUT option, if below average – the acquisition of CALL option.
The fact of breaking the fractal level (marked on the chart with gray dots) means speeding of trend movement and outflow – consolidation. The combination of the indicator current levels “of support-resistance” and the exponential moving average makes it possible to fairly accurately predict the price changes within 2-3 candles. This work with binary options is quite enough, even more abundantly. At a penetration level of the previous resistance you should buy an option having a term expiration of 15 minutes. If the level was not broken – it is for a period of 5 minutes.
Specific examples of transactions carried out on «EUR/USD», (single lines mark transactions with a term of expiration of 5 minutes, and the double – with a term of 15 minutes).
Some hobbies can turn into a favorite work. The same happened with the American trader, a creator of the system, who made it possible to access for all of us. Everyday careful analysis of the graphs brings food, makes it possible to examine the real causes of phenomena and their interactions, determining the pricing. In addition to the interface changes and a set of standard tools that this system uses, its effectiveness is amazing. Maybe, it’s much easier than you think ?