In the last couple analysis we followed two major currencies with their triangle template, it’s the EURUSD and USDCHF, here is the screenshot from last week:
EURUSD Daily from Oct. 9th
Finally, both of the currencies at the same time had the breakout we expected to see, if you trade for short term such as 5 or 15 minutes binary options or even 60 seconds you probably hit some successful tradings.
Since the breakout, the trend continues at the same direction and currently both heading to a resistance/support line.
What’s next? there is a good chance we will see the EURUSD heading to the same peak low it reached last November 1.05, for the USDCHF it’s the same trend (different directions due to the opposite symbols) goal price for the USDCHF is 1.025.
On this analysis, before jumping to our main currencies and assets, I’d like to bring the focus for a super interesting opportunity, the Turkish Lira, and at the same time to present you with a nice strategy based on diversions that you can easily use during tradings the binary options.
Start with the strategy:
- MACD 12,26,9 (Default settings)
- Stochastic 5,3,3 (Default settings)
- Bollinger 2.0 and 3.o
If you wish to learn more about each and every indicator here is a link to a site i recommend – Babypips.
Keep in mind we all deal with increasing the chances for a successful trades, there is no strategy and never will be that can assure you 100% of success rate, so basically those strategy are good to increase chances from 50%/50% of random trading.
Here is an example of USDTRY graph including all indicators for diversion strategy:
USDTRY 4 hours chart
With a small effort you can notice for diversion between the uptrend of the graph and the downtrend of the indicators, the main and most important for this strategy is the MACD indicator, i marked the diversions as follow:
a. There is a clear diversion between graph and indicators, it can be also neutral trand Vs. up/down trend.
b. Currency reached a peak high/low
c. Candle closing price is above the Bollinger 2.0 (at least)
Use the stochastic to increase your chances, it is better to have the same diversion image for stochastic and also to have the better timing when stochastic is above 80 level.
When all of the conditions are met you place a trade for an opposite trend.
In the example graph, i marked two opportunities for a successful trades.
The diversion strategy is good for long time frames from 1 hour and above.
The USDTRY provides us an interesting diversion on weekly chart, while the trend is neutral the MACD indicator is showing a long decrease.
USDTRY Weekly chart
Now let’s take a look for some of the majors, start with the Gold:
As i mentioned in my previous analysis, gold has reached to the support uptrend line, a breakout will initiate a downtrend, till then, the assumption is that the gold will keep the uptrend.
Oil, after the breakout from a triangle template, it reached a weekly resistance line, It’s a critical point, a breakout from here will take the oil to an uptrend, and vice versa if it doesn’t.
We’ve got a great opportunity for an amazing trade with Bollinger strategy, on the 15 minutes chart, the closing price was below bollinger 3.0, the ones who followed the strategy it immediately returned a nice buy option opportunity.
GBPUSD 15 minutes
That’s all for this week, wishing you successful trading.