This binary strategy depends on many factors, you can trade different binary assets and earn on minimal changes in the market price of the asset. Given the volatility and uncertainty that have characterized most European trading sessions lately, traders have few successful trades while trading on the London Stock Exchange.
Good results are obtained by the “Blade Runner” strategy, which can be experimented with in accordance with the surrounding conditions, using a zigzag movement of the price from one end to the other, from moving one narrow spectrum to another.
You can also use one of the interesting indicators – candlesticks: a band of negation, or a hammer. It is enough to find a negative band, which forms resistance after the price has moved from a narrow spectrum. Further, you can buy or sell depending on the direction of the hammer with a short stop near the tail of the hammer. When the ratio of 2 to 1 profit/loss is reached, you can move the stop to the break, when the profit will be equal to the amount of trading risks.
The chart below illustrates a full day of trading session in Asia. Its beginning is the beginning of the week, on the left. It should be noted that the formation of the first hammer is the final candle in the previous week’s trading. The price moved to an open position in Asia, it happened this morning, and moved to the side. The blue area on the right of the chart indicates the opening of the European session:
When the London session opened, there was a gavel deviation from the daily central turning point. It should also be noted the sequence of falls immediately to the left of the turning point. All this happened at a level when the gap in the price was filled, which adds confidence that here the price can change the direction of movement.
You can enter the market with a limit of two points under the hammer candlestick. You can see a thin horizontal frame where the stop loss passed through the white circle. When setting the profit limit at the weekly turning point indicated by the blue horizontal line, you can quickly exit the trade, earning a full profit of 2:1.
The third circle indicates the moment of a possible entry on a bullish hammer, after the price has fallen, and formed a lower boundary, bouncing three times from the monthly turning point (dotted line at the bottom of the chart). As a side note, it’s worth noting that it’s interesting to observe how often price will drop to one resistance level – in this case, a weekly turning point – and “eat through” that level until it finally stops at the second resistance level.
Tagged with: Binary Options Strategy
