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Fibonacci retracement chart

Fibonacci binary options strategy

25 February 2014 • Binary options strategies

Binary options trading system with Fibonacci

A lot of traders use Fibonacci retracements to trade online, because they can influence the levels of the prices on the market. Now we will try to use them to make a good profit on binary options: Fibonacci binary options strategy.

Strategy for binary options with Fibonacci retracements

In the past we introduced a strategy that used Fibonacci (retracements and fan lines), but now we can see excellent signals in the entrance into the market of binary options only with the retracements on the following values:

  • § 61.8%
  • § 50%
  • § 38.2%

Let’s see the strategy:

1. First of all let’s locate in a graph with 1 minute TF a swing (upward or downward) that seems ending its power with a beginning of the lateralization or even a clear inversion of trend.

2. Then let’s locate the minimum and maximum points of the swing, for convenience we’ll call A the maximum and B the minimum.

3. Let’s take Fibonacci retracement from our platform and join A and B, always moving from A to B, that is from the maximum to the minimum.

4. On the graph will appear several levels, among which 61.8%, 50%, 38%;

5. The above mentioned levels are the ones in which we could expect a temporary rebound on the price.

6. If we are in an upward reference swing (such as the one in the following image), we will open at these levels some calls (up) with 60 seconds expiration. If we are in a downward reference swing, we will open some puts (down) with 60 seconds expiration.

Here is what we see when we trace out a Fibonacci:

Fibonacci retracement chart


Here are the developments of this strategy

Fibonacci trading strategy

As you can see we obtained 4 investments in the money out of 4 we executed.

You will realize that these levels traced out will be tested and tried several times, both as resistances and as supports. Besides, once ended the exploitation of a swing, we can go on and retrace a new Fibonacci for the following swing (in the case of our image, a new downward swing), that can originate new entrance signals.

It’s useless to say that this strategy cannot always offer a 100% return and, like all strategies, it’s very risky and so must be faced with the right spirit. However I can say that very often it revealed extremely profitable and so I recommend everybody to try it, maybe with a demo account or simply on paper.

In order to apply this strategy I recommend using a broker with a quick response.

As always, I’d like to receive your feedbacks in order to further optimize this strategy.

The recommended brokers for this type of strategy are the ones which allows 60 seconds investments and which have a minimum reaction time, such as 24option, cedar finance, optionbit .

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