This binary options trading strategy tracks the dependence of daily turning points and Fibonacci levels. It allows you to get accurate signals to enter the market and earn decent capital on it.
Features of the strategy
The preferred parameters of the strategy are 38% or 50% of the Fibonacci level combined with daily central turning points. For example, the following shows the waters at 38%, 50%, and 62% of the Fibonacci level combined with the daily central turning points.
As with all free strategies, there are many interpretations and variations of this system. Chris Laurie has identified a few basic strategies, called Lori P38 trading, available as one of six samples in his course on turns. These strategies empower the trader by providing them with less stringent market entry requirements.
Look at the moment of entry into the market of any currency pair, where the average spectrum over the past five days has been exceeded in the trading sessions of previous trading.
At the beginning of the in-line trading session, draw the lines:
- from the previous day from bottom to top, if the price is currently above the central turning point of the flow day,
- from the previous day from top to bottom, if the price is currently below the central turning point of the current day.
Look at the alignment of Fibonacci levels with daily central turning points. If price tracking with combinations is defined, either enter the trades or wait for the confirmation signal of the candle. Obviously, when entering before the candle confirmation signal appears, you risk more. But this approach also gives you more opportunities to earn according to the risk/reward ratio.
Examples of the strategy
Let’s take a look at some of the charts to understand exactly how the strategy works. The first chart shows a long entry when the 38% Fibonacci retracements and the daily central pivot points are combined:
It is possible to enter the auction either here or when purchasing at the first touch of the level, or wait until a candle is formed. Both entries will provide an opportunity for a 127% Fibonacci expansion level, which will be quite easy to achieve.
The proposed stops for this type of trading are beyond the Fibonacci level, at a distance of one level from the place where you enter the market. In this case, the correction level is 50% with some additional points.
The following situation shows the reverse settings of the previous trades with the sale, which occurs when the 38% and daily central turning points are combined:
This is a good setup, given the drop that occurred during the trading session in previous trading. The drop indicates a change in what has already added significance to the decision to sell. And again, another example, selling after a long movement in the downward direction, the day before:
This time, the sale went at the level of a 50% correction, although there is no perfect combination with the daily central turning point. And yet, the evening star pattern appears both at the daily central turning points and at the 50% correction level, which should be considered before entering a trade. The last example shows the alignment of the central turning point with the 62% level, plus the old drops to the left of the chart:
The strategy is an example of how any turning point can be used in conjunction with the daily central turning point. In this case, it is better to check the price again the next day at the entrance.
As always in the case of new strategies, and especially with free binary options strategies, remember that it is necessary to fully test them on a demo account before proceeding with real trading.
Tagged with: Binary Options Strategy
