Above/Below Binary Options Strategies
Binary options “higher / lower” is a classic of trading, one of the most popular and simple types of trading, which makes it possible to get big profits. To participate in trading, you only need to indicate whether the price will rise or fall, and, in case of a correct forecast, your deposit will be replenished with funds. As a result, there are only two possible outcomes: the price will be either higher (CALL option) or lower than the current position (PUT option). Often options for increase and decrease are called digital.
Simple and understandable conditions, as well as the ability to choose the type of asset, expiration time, all this made trading options “above / below” the most popular in trading. In order to achieve the maximum, you can use reliable indicators, productive strategies and other trader tools. To determine the trend, you can turn to oscillators (MA, RSI, for example), trading strategies and other opportunities.
After waiting for the formed trend (both upward and downward), open a position and wait for the results. You should buy options “higher” in the case when an upward (“bullish”) trend begins in the market; You should buy options “below” when a downward (“bearish”) trend begins in the market. In both cases, the states of the extremes will be the most reliable and productive signals.
In addition, you should be aware of the sideways state of the market (i.e. flat), when the price readings are not fixed in one direction and jump. At such moments, it is better not to trade, at least within the framework of this strategy, because The dynamics of the market is chaotic, it will be difficult to predict where it will be after some time.
Advantages of “higher/lower” options
- Fairly simple trading conditions,
- Income from 67% to 86%,
- Round-the-clock trading,
- The widest selection of assets for trading,
- The largest selection of expiration time,
- Auto Trading,
- The possibility of early closing of the transaction, its extension and doubling.
Trading Strategies for Higher/Lower Options
So, to trade options “above/below”, you must indicate whether the price chart will rise or fall in a specific time. At the same time, it does not matter how much the market rises or falls. You will earn income if the price moves at least one position in the direction you specify. To make trading options “higher/lower” productive and bring you a decent income, we offer you the three best strategies.
Trading for a breakthrough
Breakout trading is one of the most popular options trading strategies. A breakout is a significant event occurring in the market that affects price dynamics. Most traders who stick to traditional trading place stop or limit orders at specific breakout points. When the market moves to the price level, it activates these orders, creating, depending on the direction of the orders, a sudden jump in supply or demand. It is this jump that creates a strong displacement, called a breakthrough.
All that remains is to invest in options for increase or decrease before there is a critical price level on the market. Set the expected expiration time for a shorter period (1-2 periods), in order to make sure that the expiration period ends before the breakout dominates the market.
By working properly with breakouts, you will be able to limit your risks and catch the dynamics that will generate income. By trading on breakouts, the trader opens a position after the price breaks through the resistance level and enters the market after the price has broken through the support level. When the price has gone beyond these boundaries, it most often moves in the direction of the breakout. Therefore, it is a common fact that it is a breakout that becomes the beginning of a new trend. This is a convenient trading tactic.
When preparing for such a trade, it is important to find support/resistance levels: and the more the price chart touches these areas, the more reliable they are, the more significant the breakout itself will be. Positions are opened only after the previously defined support-resistance levels have broken through. When a suitable situation is found, it remains to plan a future trade: if the price closes above the resistance level, the trader opens a long position; If it closes below the support level, take a short position.
Breaking through the support-resistance levels is one of the strongest signals. Using breakout moments is a profitable strategy that will make it easy to earn a decent income.
Trading at the intersection of moving averages
Those traders who use technical oscillators to generate signals can apply the crossovers of moving averages. For this profitable strategy, it is necessary to use two moving averages: one with a large number of periods, the other with a lower number of periods. The average with a low number of periods will clearly follow the movements of the market, and the second will be characterized by a slower reaction to market dynamics. This very simple ratio will be your advantage while trading.
When the fast moving average crosses the slow one in the upward direction, this suggests that the market dynamics are carried out in the upward direction, this is a great opportunity to buy long-term call options (it is better if the expiration exceeds eight periods). When the fast moving average crosses the slow one in the downward direction, it suggests that the market dynamics are carried out in the downward direction, the possibility of buying long-term put options.
At the same time, it is important to understand that the moving averages you use, as well as their intersections, take place in a trending environment, otherwise they will not predict the dynamics when there is a movement to the sides. Traders who would like to remove optical trend analysis altogether may consider using the technique of crossing three moving averages. Such a strategy will be productive even at the moments of moving to the sides.
You can also build additional lines and trend lines that will help determine the reasons for the price dynamics. This is a simple, understandable even for beginners of options, but a productive strategy, use it to get high-quality signals.
Swing trading
Working on the swing trading strategy, traders get the opportunity to earn on each move up and down. Today, the concept of “swing trading” is popular, but the strategy itself came to us from the 50s of the last century thanks to the works of the trader J. Douglas Taylor. Swing trading (swing trading; “swing” (swing) from English. Translated as “swing”, “turn”) or swing trading is another productive strategy for trading options for up-down.
This is ideal for trading options “above/below”. In case you notice a weakening swing, it is worth investing in the opposite direction to the swing. In order for the movement to develop, it is recommended to use a more medium or long expiration time (approximately five periods) in this strategy. With such trading, it is important to correctly assess the strength of the fluctuation, oscillators, for example, RSI, trend channels, support-resistance lines will help with this.
In this style of trading, you have to hold a position for two to five days, which makes it possible to place bets at those moments when the price reaches extremes. Such swing trading occurs when the market is in a sideways range and an uptrend, downtrend. The trader should identify resistance and support levels, which are the boundaries of a trend or flat. When the price approaches the boundaries of resistance or support areas, you can open positions: when the price approaches the support level – long; When the price approaches the resistance border, it is short.
One of the advantages of swing trading is that the trader earns regardless of the direction of the market. Such trading is not associated with high labor costs and tension (as, for example, occurs with scalping), does not take much time, you do not need to sit all day at the monitor, while the profitability is above average.
This is an effective strategy that generates a lot of high-quality signals, it is ideal for those traders who need quick money, because More signals mean more bets, and this is an opportunity to make a profit.
Application of “higher-lower” strategies at the Binomo broker
We recommend trading options “above and below” with a reliable broker Binomo. Among the advantages of the company: high ratings, a convenient terminal, a simple personal account equipped with the necessary tools for trading, a mobile platform, training materials, and fast withdrawal of funds. Working on the broker’s trading platform, you increase the effectiveness of “higher-lower” options at times. You can get acquainted with real reviews about the Binomo broker, as well as get involved in an active discussion of active traders here.
A detailed review of the Binomo broker is here.
Go to the official website of the Binomo broker here.
In order to buy a
CALL
option in the Binomo trading terminal, follow these steps by going to the binomo.com website and preparing the option, indicating:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: UP
- Click the “buy” button and follow the results.
In order to buy
a PCI
option in the Finmax trading terminal, follow these steps by going to the binomo.com website and preparing the option, indicating:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: DOWN
- Click the “buy” button and follow the results.
Bonuses broker Binomo
A significant advantage of Binomo is a lot of promotions and bonuses for every taste, you can familiarize yourself with them and take part in any of them here. Working on the platform with bonuses, the trader not only gets a good chance of a decent income, but can also get the most out of trading faster.
Binomo Weekly Tournament
Weekly tournaments from the official Binomo website are an opportunity to get real money for free. Such tournaments are held on Thursdays, traders with any experience who have a demo account with a broker can participate in them. The main prize, which is awarded to the winner with the highest profit during the tournament, is options worth $150. This money can be withdrawn in any convenient way or spent on trading.
Participate in the Binomo tournament
Findings
It doesn’t matter if you are new to trading, or have already achieved experience in this area, trading “above and below” is something that will help you reach even greater heights. If you want to make steady money in the binary market, always practice and improve. Remember, trading is evolving all the time and does not stand still.
Tagged with: Binary Options Strategy • Binary Strategy for No Touch Options
