You’ve probably already heard that the most effective trading tactics are trend trading, and the best moment to open a trade is the moment of price correction. To set the reversal levels of the price movement during the correction, we use the Fibonacci grid, a unique technical tool for graphical analysis.
Fibonacci grid
The operation of this tool is based on the Fibonacci regularity, according to which each subsequent number is equal to the sum of the previous two (1, 1, 2, 3, 5, etc.).
Using the specified mathematical series, you can set the depth of price correction and the size of the upcoming wave of price movement.
How does the Fibonacci grid work?
On the Binomo terminal , in the left corner, find the graphics tools tab. Choose the Fibonacci Grid among them:
Imagine that the quotes of an asset have been moving up for a while. It will be unwise to open a deal for an increase: there is a high probability that the price may turn around for a correction in the opposite direction.
The optimal level of opening a trade for an increase is one at which the corrective movement will turn around again, and the movement along the trend will continue.
How do you set a Fibonacci grid?
We apply the Fibonacci grid to the chart, placing the “0” level on the basis of the growing trend, and the “100” level on its top:
Now we have clear guidelines: in the vast majority of cases, the reversal of quotes during correction occurs within the levels of 50 and 61.8%. Reaching this section, the correction is likely to end, and the quotes will turn back to continue moving along the trend:
The Fibonacci grid is also suitable for downward trends. The height of their correction, as a rule, is no more than 61.8% on the Fibo grid
Trading on Fibonacci levels with the broker Binomo
For the best result in terms of strategy, we recommend working on the site of a trusted broker Binomo, which is one of the leading among Russian traders. A functional platform, advanced customization options (chart type, indicators, mobile trading, a wide range of options, expiration dates, etc.), convenient withdrawal and deposit of funds – all this makes binary options trading much more profitable. You can get acquainted with real reviews about the Binomo broker, as well as ask a question to 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 by specifying:
- 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 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: DOWN
- Click the “buy” button and follow the results.
Bonuses broker Binomo
One of the significant advantages of the Binomo broker is that there are always a lot of promotions and great offers on the official website, which you can find here. By trading using bonuses, a trader can not only get a good chance of a decent income, but also get the most out of trading faster.
Binomo Weekly Tournament
Weekly free tournaments from Binomo are a unique opportunity to get real money without your own investments. 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 in the amount of $ 150.
Take part in the Binomo tournament
Findings
The strategy of trading on unique Fibonacci levels, which allows you to follow the market trend, is considered one of the most effective and reliable. Thanks to the simple principle of operation, both a beginner of options and a professional can cope with it.
