An excellent trading strategy for binary options with expiration 60 seconds is analysing the channels that form in the candlestick graph in a 1 minute time-frame.
Binary options trading system with levels
When analysing the graphs the shape of the candles is very important, but with such a short time-frame it’s more important to detect good levels of support and resistance, which detect a channel of movement of the price, rather that look for a trading signal in the shape of the single candle or a in candles’ mini pattern. I mean that detecting some pinbars, hammers or shooting-stars is senseless in such a short time-frame and most of all for such a short investment expiration like the ones of 60 seconds.
Thus, the real important matter is detecting some channels of movement of the price marked by two levels of support and resistance, in case they exist, and be ready to invert when these are touched. In fact, being channels of movement, near those levels can probably occur a rebound providing us with the direction where to invert for the following 60 seconds.
Every day we can detect a lot of situations similar to the ones shown in the above pictures, and for the traders of binary options like me, they are real gifts provided by the markets. The only problem is that such gifts aren’t delivered to our house, we have to find them.
In the above pictures you can see some stages of the couple of currencies EUR/USD on the 28th of November 2014. I underlined the channels in which the price tends to move. They are horizontal channels and so their limits are levels of support and resistance that is important to consider. Every arrow on the graph indicates a clear rebound of the price on the level detected. There are a lot of them in a very short time-frame. Leaving out the first arrows on the pictures, that are needed to detect the formation of the channel, all the following ones are clear signals of entrance in the market.
Every day you can find a lot of configurations similar to the ones shown in the pictures above for every couple of currencies and considering all couples on which you can trade with binary options, you’ll realize how many trading opportunities are available every day.
This strategy for binary options was called “Strategy of levels” by OB60 and it’s ideal for 60 seconds investments just when it’s recommended not to make forex trading, that is during the lateralization of the markets. While doing forex trading, in fact, in the stages of lateralization of the markets, that is stages in which the markets fluctuate with relatively short movements, it would be better not to enter the market, neither long nor short, since the movements of the prices are so limited that you wouldn’t even cover the costs of the broker’s spread. On the opposite, these stages can be widely treated in binary options, as we shown before.
Thanks to indicators like ADX you can obtain further confirmations about the fact that the markets aren’t following any trend in that specific time-frame, and this information can be useful to strengthen our theory.
Obviously, following this “strategy of levels” you’ll tend to close the last operation of every trading session “out of money” if you tend to follow the channel until it disappears, but this means that before reaching that result you obtained several trades closed “in the money”.
Good luck and always act carefully.
This article it’s not an invitation to invest your money in options. It’s just an explanation of how we can invest with this financial instrument. Thus, if you decide to follow our example, you are doing it at your peril.
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