For all those traders who are looking to have clearer picture of the weekly market sentiment are out of luck. Currently the market is not heading in a clear direction. I repeat: There is no clear direction. The overall sentiment for the market is upwards but the market is so volatile and anxious. There are too many triggers that are just waiting to bring the market back down.
As a binary option trader, you can take advantage of this situation. In this weekly analysis I’ll show you why there is no clear technical picture, and how you as a trader can concentrate on a great short term strategy and make some money instead of thinking about the next market move.
For instance, take a look on the S&P Index:
You can see the S&P Index is moving in the same upward trend. Seemingly nothing has changed, but we the index should maintain the same trend. However, you may notice the S&P is reaching a resistance level plus – the stochastic indicator shows a cross between the two lines while reaching 80 from above. It means that the chance we will see a reversal towards a downward trends is getting higher.
This is what I’m seeing in this week’s market. On one hand there is an uptrend, but on the other hand there are good chances for a short. It’s completely right to say the market direction this week is unclear.
The market sentiment for EURUSD is also unclear. The weekly chart is neutral and the daily chart is mixed. In this situation you cannot accurately determine market sentiment. We also see this in GBPUSD. After the great move downward, we experienced a retrieve that ended last week again with some short downtrend moves.
GBPUSD 4hours chart
So we know the market direction is not clear, but we also know it displays a great deal of volatility. I say let’s take advantage of this! I’ll give you some ideas here how to make money with a 60 second strategy with binary option.
I already published two 60 second strategies and today I’ll show another 60 second strategy which is based on Bollinger bands which I often use . This strategy is great with a volatile market.
First, you need to clear your chart of all indicators as well as the moving average. Next, you should add three kinds of Bollinger bands, each one with the same Bollinger bands period of 20 and the deviation should be 2.0 ; 3.0 ; 3.9 each.
Now you need to zoom out to a higher time frame. The longer the time frame the higher your chances are to win an option. I recommend starting with a 15 min time frame, once you see a trigger you can trade immediately on a 60 second option, the trigger can be one of the two:
1. The candle is closes between 3.0 and 3.9 Bollinger bands
2. The candle reaches and touches 3.9 Bollinger band
Each of the triggers presents a limit for buyers or sellers, and we can expect for a retrieve. What that means is that once you notice one of the triggers you should trade in the opposite direction of the market.
The moment you see it you should trade the opposite trend. (note that for the first trigger you should wait until the 15 or 60 min candle is closed in between 3.0 and 3.9 Bollinger bands.)
This is why it is a 60 seconds strategy – you wait for a setup on a 15min or 60min chart and trade for 60 seconds.
Here are a couple of examples:
EURUSD 1hour chart for 60 seconds call option:
GBPUSD 15min chart for 60 seconds call option:
Gold 15min chart for 60 second put option:
Good luck with your trading! If you like the analysis don’t forget to share it.