As a financial educational program and providing practical recommendations for effective and highly effective trading on binary options, we offer you a basic list of formats of working strategies for trading in the binary market. In our article, we will present the main forecasting techniques that are used by market professionals and successful online investors to obtain high and stable results.
So, the main and most influential indicator on the result of binary options trading is the correctness and stability of forecasts of the movement of quotations of the underlying asset. To gain advantages over the market, investors use trading strategies that are based on two main areas of analysis:
- Fundamental – in this direction, macroeconomic indicators of the market are evaluated over a wide time range, as well as global factors influencing the market
- Technical – this format of market analysis uses current quotes as an object of evaluation, identifies cyclical patterns of asset price movement and, on the basis of this, forms highly probabilistic forecasts for trading in the binary market
This list of analysis formats allows you to develop and use a wide range of various trading strategies in the binary market, which are divided into directions depending on technical tools and approaches to determining market trends.
- Charting Strategies
- Indicator systems
- Strategies on patterns (trading on a clean chart)
- Fundamental Analysis Strategies
All strategies have different indicators of efficiency, versatility and stability, but in any case, traders can get certain advantages over the market in terms of making a profit. Let’s move on to practical examples.
Charting Strategies
This format of binary trading strategies is built on the basis of different cyclical patterns, which are identified using specialized graphic services: lines, geometric shapes, market zones. As the main examples of this direction of strategies, we can offer the most effective forecasting system based on trend levels identified by graphic lines. To do this, you will need a terminal with the necessary tools, as which we recommend the platform of the operator Binomo, where a technological service of graphical analysis tools is presented, as well as optimal conditions for effective professional trading are offered:
The strategy of trading on trend levels is characterized by simplicity and a high level of accuracy of signals. To use it, we take the graphical analysis tool “Line”, with its help we determine the trend levels – support or resistance, depending on the current direction of the fluctuation of quotes:
Trading rates on this trading system are drawn up on a rebound from the trend line. This format of signals has an efficiency of at least 85%, which allows you to consistently make money on binary options in a simple mode.
Indicator Strategies
This instrumental approach to forecasting is built on the basis of special algorithms of a mathematical nature, the task of which is to assess the current indicators of quotes of the underlying asset and the formation of forecasts for options trading. Here, the advantage for the trader is the simplicity of signals, the number of technical tools for automatic analysis – indicators, as well as the accuracy of the generated forecasts. Indicator strategies are the most common and popular direction of trading systems, which is used by both beginners and professional investors. As an example, we can cite a simple combined strategy based on trending high-tech indicators:
The set of signals for trading is shown in the screenshot above. This trading system is a professional approach for generating forecasts, which gives traders the opportunity to get more than 87% of forecasts with positive expiration.
Trading strategies on a clean chart
This direction of technical strategies for the binary market basically uses a variety of patterns that help investors identify trends in the movement of quotes. This includes, first of all, candlestick patterns – patterns and figures built by quotes in the format of Japanese candlesticks, wave models of market movement. As an example, let’s consider the “Engulfing” trend reversal candlestick pattern. It does not require special tools, but only the attention of the trader and his reaction. To form a forecast based on this pattern, it is necessary to identify a situation in which the candlesticks of quotes form such a combination of construction – a downward candle was formed on an uptrend, which covered the previous growing candle with its body:
This mode of plotting quotes indicates a reversal of quotes to a decline, which allows you to use the pattern as a trading signal. This pattern has a high level of cyclicality and efficiency as a trading signal on average up to 90%.
Fundamental Analysis Strategy
This area of strategy includes a fairly wide range of strategies. But all of them have a high level of complexity and require deep professional knowledge. For this reason, they are rarely used by non-professional investors. However, for example, we can cite a simple approach to using fundamental analysis in binary trading – the “News Trading” strategy. It uses a simple mode for evaluating market fundamental data and a trading mode that is accessible even to beginners. All that is required for the strategy is an information service where market statistics are published and a trading terminal with quick execution of contracts, which we will use as the terminal of the Binomo broker.
As a trading signal, we use the moment of data release, and we generate a forecast for bets according to the following principle: good data – we trade UP, bad data – we trade DOWN. A practical example: data on oil inventories showed a decline, which will logically increase the demand for the asset. The market reacted to this with an increase in quotations:
Knowing the time of publication of data (for this we use the information service), you can place a bet up during the release of statistics and get a guaranteed result in the binary market.
This list of technical strategies for assessing the market has many derivatives that traders develop based on their own experience and preferences. Using our recommendations, you can independently choose the optimal market forecasting mode for yourself, which is best suited for your style of work in the binary market.
