Binary options trading system with Fibonacci
Dear lovers of binary trading, here we are again with another interesting trading strategy that is giving excellent results, so I’d like to share it with you. As always we are trying to find strategies that put aside the trader’s emotionalism in order to be applied with a certain precision as soon as the signal we were looking for develops. As everyone knows, the psychological factor affects traders a lot and we should minimize this influence. We can do it only if the strategies we are applying result effective with a certain frequency. Well! Now, let’s start from Fibonacci.
In the past I already told you how Fibonacci retracements are really a fantastic tool to try to suppose how markets can evolve in some circumstances. To review these strategies with the relevant and very precious comments, write “Fibonacci” in the inner search form of our blog here on the right.
Now let’s focus on the heart of the strategy. The title I gave to this post is very clear. Practically we should find a good “branch” of trend to which we will apply Fibonacci and check on several time frames if we are approaching the value of 61.8% in order to open a rebound transaction exactly on the level 61.8.
Let’s have a look at the following images in order to better understand the concept which is at the basis of this strategy.
The expiration I will chose is 5 minutes and so I will need a graph set at 5 minutes.
I trace out Fibonacci retracements, in this case from the minimum to the maximum point of the graph in order to display the levels of the retracements (yellow lines).
Here is the graph with 5 minutes TF.
How you can see enlarging the image, I will detect my entrance point (in this case a call) when the candle will reach exactly the level of 61.8. With the white arrow I pointed out my entrance into the market. However, before opening my position I checked that this level was valid also for other greater time frames, such as 15 and 30 minutes.
I’d like to specify that, as I always do when I watch a graph, I’m moving among several time frames in order to understand if the one I see in a particular time frame can correspond with a different time frame and so give me more safety.
Enlarging the two images with 15 and 30 minutes TFs, you can see how the level of Fibonacci 61.8 has been honoured several times also in the past, evidence of the fact that it’s really an excellent level to be considered.
Summary of the strategy
1. First of all we should make sure we aren’t in the presence of an important macroeconomic datum disclosure. To do this simply have a look at the economic calendar.
2. We choose an asset in which we can observe outlined mini-trends, such as the one shown in the images above.
3. Let’s trace out Fibonacci as shown. Being the trend upward, we will trace it out from the bottom to the top.
4. Check if we are approaching the level 61.8 (coming from the top) in 5, 15 and 30 minutes time frames.
5. We expect a rebound on the level, so we will open a call with 5 minutes expiration when the price level will reach the retracement 61.8.
This is the result of our investment:
This is the closed transaction:
We are always speaking of a strategy, that as always originates high risk investments. If you decide to follow our indications, you will make it at your peril. So, first of all you should try this strategy on a demo account in order to verify its effectiveness, aware of the fact that even if it recurs one time, it isn’t implicit that it will always happen. From our tests it proved to be a successful strategy, so we decided to describe it.