Binary Options Strategy Pivot Point Levels Reversal For MT4
Table Of Contents:
Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.
The Binary Options Strategy Pivot Point Levels Reversal For MT4 proves a powerful reversal trading method. Many people ignore the fact, reversal trading is an easy task. It becomes easier, when you focus on the options trading system.
The indicator that we are going to use automatically embeds to ex4 files. By placing the indicator files and template file to the data folder, you are can take some great moves in the market. Though it might seem super easy at the initial stage once you slowly dig deep, you will feel the heat associated with the reversal trading method. However, by following the core rules of this article, you can expect to win more than 75% of the time without having any trouble. Carefully select the time frame as a minute time frame might lead to confusion in reversal trading. However, an experienced trader or who can flow the rules mentioned can trade in the time frame. Let’s learn more about the rules.
Call option
After setting up the template you will get the pivot levels in the cascading structure. By seeing the highs or the position of the low you can determine an uptrend. In an uptrend, you will get new higher lows on a regular basis. And in the downtrend, you will get lower lows. As it is a reversal trading technique, the price will rebound after hitting the pivot support.
The JMO value will be near the 20 levels stating the price is looking to go up. At the same time, the P Magic rainbow indicator will be showing some strong bullish activity. This means, the price will be bouncing off the green line at the bottom. If the bounce is not that prominent, you should not be taking any trade. Visual examination of the pivot level is also required as the JMO and P Magic indicator might give you a false buying signal. This examination process will work like a filter.
Put option
For the put option, the price needs to show respect to the cascading resistance. Usually the price shows major rejection of the resistance at the end up uptrend. So, look for such rejection. Spotting a bearish rejection requires a bearish JMO reading. The JMO signal line must be trading at the 80 levels. And the P Magic rainbow indicator will be showing a strong sign of bearish reversal. This means it will be testing the red band.
Before you get ready to sell the asset, be cautious about market sentiment. To analyze the sentiment of the market, you have to rely on the news. However, you can do that by taking the data from the daily chart. But this options trading method is perfect to trade in any time frame. However, the commodity and stock trader should start with hourly chart it gives more accurate reading.
Useful tips
Though it is designed as a reversal trading system, you can stick to the trend and use it to identify the major retracement. Taking the trades after the retracement phase allows you to securely profit a decent amount of money. However, the retracement trading method is not suited by all levels of traders as it complicates the things and makes a trader confused.
Unless you have advanced skills, precisely follow the steps of this article. Lower the risk to 1% no matter how confident you feel about the setup. Never trade to win money rather trade with a mindset that you might lose. Having such preparation keeps your emotions in control. In case of a choppy price movement, stay away from the market dynamics. It’s not like you have to trade all the signals. Define your comfort zone and assess the outcome before you even open trade. By doing this, you can prepare to deal with the worst-case situation like a pro.
Download the complete system description and the files here:
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
