Hello Traders,
As from yesterday, Donald Trump is officially the 45th president of the united states, when Obama was elected, most of financial analysts were skeptic and bet on the market collapse, eventually, not only the markets didn’t collapse it soars and increased almost consistently, here is a chart of the S&P during Obama’s presidential:
As for Trump, almost all analysts bet the market will collapse if he will be elect, again, the result turned out to be the opposite, there is still one big difference now, interest rate has start to increase, this fact will effect the market while investors will shift their money from a risky stock market back to bonds, all-in-all this time the market conditions are against the odds that nothing will go wrong during Trump time.
The S&P is in pick high so there is no a real resistance line to limit the increasing index, as a binary option trader, it’s the right moment to concentrate on short time frames (usually i recommend here on long term trades).
For that reason, i’d like to share with you a fantastic 5 minutes strategy for the binary option traders – the winning candle, i love this strategy because it works great especially for EURUSD and GBPUSD currencies.
The winning candle – a 5 minutes strategy
Indicators: Stochastic, Moving average 20 & 10.
Recommended currencies: EURUSD, GBPUSD.
Time frame: 5 minutes
Trigger for call option:
- Switch to 15 minutes time frame graph
- Moving average 10 is above moving average 20
- Stochastic D line crosses K line below 20 points
- Candle is up
- Go to 5 minutes time frame , trade on call option
Here is how you should trigger from 15 minutes chart:
5 minutes winning trade results:
Trigger for put option: same instructions as call option but opposite.
This strategy has above of 85% of successful rate, but don’t take my word for granted, check it out on a test environment, you’ll find out the winning rates are phenomenon because it involves two time frames and two indicators, still it keeps a simple execution and decision making.
As a new trader to the binary option trade it’s a perfect strategy to begin with.
If you like to read more about Moving average and Stochastic, here is what i wrote about these indicators on my previous weekly: Stochastic, Moving average.
Now let’s analyse the Market for next week:
EURUSD
The currency is in a neutral trend in the past couple of weeks while it checks again and again the support line, at last time it looked like it is going to breakout toward a more downward price, currently it has a good chance to initiate an increasing trend.
EURUSD monthly chart
EURUSD weekly chart
GBPUSD
Pretty much at the same status as the EURUSD currency, 2 weeks ago it checks the bottom, as for the near future it seems a correction toward a short increasing trend is about to happen.
GBPUSD weekly
Looking at the daily chart, there is a dramatic candle which may point on a change in direction even if it’s for a short term, as a binary option trader that should be enough to win some call options.
GBPUSD daily chart
Note: in these cases, in order to take the most of your strategies, it is recommended to seek for call option triggers rather than put options.
One of the most interesting commodities is Gold and Silver, both seems to initiate an increasing trend, the more clear one is Silver, looking at the Monthly chart, Moving average shows an increasing trend and by the setup of the candles it looks like a right moment to join.
Silver Monthly chart
Silver Monthly chart – zoom in
Wishing you a profitable week
