After so many big events and major decisions, the market now in a waiting mode.
For us, as a binary option traders it’s great news!
Every binary option trader should have a tool box fill with strategies that can be used for each market mood. for instance, in times where the market is super volatile, the best strategies is the ones who are based on one touch binary option or ladder option.
on vice versa, in times where the market keeping the same pricing range (as we experienced on last week, the best strategies is the ones who rely on boundary options or range trading (it’s the same with different name).
Let’s take some examples from the previous week and how to win with binary option trading when the market is quite of in a neutral trend.
Here is an example of 15 min chart, in order to trade with a great successful rate, a boundary binary option is best to use on non active hours of the market, which is 3 hours before closing time of the US market and 3-1 hours before the US market is open.
EURUSD 15 min chart
For the short term traders and for 60 seconds binary options lovers, it is a great strategy, once you notice for a neutral trend it is possible to switch for 60 second chart with thr same set of prices for baundary option
EURUSD 1 minutes chart for the same time period:
Binary option – Boundary strategy summary:
1. Use major currencies (EURUSD and GBPUSD are most recommended)
2. Between 1 to 3 hours before US market opening OR 3 hours before closing time
3. Make sure there is no special event in the market, recommended calendar http://www.forexfactory.com/calendar.php
4. Wait for at list 3 touching points (better to have 4 touching points), at the top and bottom of boundary.
5. Hit the trade when it gets to the price is between the low and high range of the trend.
Let’s analyse next week, see where we have opportunities:
It’s the second week of a doji candle, when you see a template such as double doji it shows a market before a major decision, in most cases it means reversing the trend, yet, the monthly chart doesn’t support it.
In this case the S&P is expected to continue with a sharp move, be ready with one touch or ladder options.
S&P weekly chart
The trend line i marked 2 months ago is kept, for the traders that follow our weekly analysis, the USDCAD was a great opportunity to win lots of trades. now it’s heading toward the upper boundary of the trend line, it seems that this time it has a great chances for a breakout.
First target is the 1.366, here is the chart
USDCAD weekly chart
Although the trend line is marked, it is still not clear if there was a breakout, for now it looks like it’s going to continue with the upward trend (same as USDCAD)
Target price for the Oil is 55.9
Oil Daily chart
Except from these opportunities which are a long term opportunities, as a successful binary option trader it is better to reduce the frequency of making trades by waiting for a good opportunity, it is a matter of being patient, wait for the right moment and only than when you sure about it -hit the trade, in case you lost one, don’t try to get it back by placing immediately another trade, wait again for the right moment. this is basically the number one rule that professional and successful traders are follow.
Have a great and profitable week.