Signals Binary Options Strategy 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 Signals Binary Options Strategy For MT4 is a conservative edge that helps you to take the trade after getting the perfect confirmation. In the most trading method, we use the instant order execution to improve our win rate at trading.
But securing the profit is not about instant order or aggressive approach. You have to wait for the market momentum to fully establish or else you are still using an aggressive method even though the risk in the trade might be 1%. Though it creates a delay in taking the trade and you will be missing some of the movement in the trend, still it is better in many ways. Sonic chart Panel, Signal, XPS8Trend Bars, Fibotrend, EMA 4 period close, EMA 8 period close, and Strength indicator is used in the template.
There is nothing to worry about by seeing the long list of indicators. The template is organized in a very precise way and any trader can take a trade without having any issue. Being an active trader, you have to remember discipline plays important functions in your success.
We can give you the guideline to open long and short trade with a high level of precision but it will be a tough call to make money if you fail to do the perfect math. By this, we are referring to the selection of the asset, expiry, period, risk exposure, and assessing the market sentiment. For now, let's get into the steps to open the call and put options. In the last part of this article, we briefly describe those factors so that we don’t have to lose too much money.
Call option setup
For our call option, the price has to hit a valid support level. The support level needs to be identified with the help trend line, or horizontal line. You can also rely on the double bottom formation to find the buying zone in any asset. The color of the bar is purple when the momentum is bearish. But the dominant color will change to transparent black when the transition of the momentum will take place.
Wait for the cross in the red and the blue moving average. The red moving average will push above the blue moving average forming a bullish signal in the market. You will start noticing green cross marks below the candle when the price is pushing higher and trying to secure a new high. Still, you can’t take the trade since you have to wait for the blue bar in the Fibo trend indicator.
When the blue bar appears in the fibo trend indicator, the color of the candle will change to blue. Now it’s time to take the reading from the top right segment of the chart. If the Buying momentum is more than 50%, you can open a long trade and make some serious profit.
But this should be done with low risk. At the initial stage, your concern should be the safety of the investment. Risk 1% or less for the first few weeks since you need to get in line with the trading method.
Put option setup
For our put option, we will be seeing a strong blue candle heading towards a resistance level. If the price hits a valid resistance level, the color of the candle will change to transparent black and you will see the price is dropping in the market. The red moving average will cross below the blue moving average indicating the selling momentum has become stronger. The Red Cross mark will start to appear on the chart.
Still, we will be waiting for the red bar in the fibo trend indicator. When you spot the first red bar, the color of the candle should change to purple. This shifting in the color shows the price ready to fall. The final check should be done from the top right information box. The selling momentum must be greater than 50% or else you must ignore the trade setup.
The system works best in 5 minutes, 15 minutes, and the 30-minute chart. But the skilled traders often use the 1-hour chart and use the PA bar to take further confirmation. Considering the PA bar in this method is a classic way to improve your confidence level. Moreover, you can use a tight stop which is very in such a trading method.
It’s not mandatory to learn the most complicated PA pattern, rather the bullish and the bearish pin bar can add great value to this trading method. If the PA bar is used, you can risk 2% in the trade. However, the news factors should be considered while taking any trade as it can create a massive false spike in the market. Try to avoid taking trades in the major news at the initial stage. But you get skilled you can trade major news in the 1-hour chart with this method.
Trade management tips
This is the most important part of this article. You know how to take the call and put option but if you fail to exit at the right time, you can’t make any profit. The traders lose money since they select the wrong expiry period. We will give a simple formula so that you never chose the expiry period wrong.
When the analytical data is taken from the 30-minute chart, multiple it by the number 2. You get 1 hour and this is the expiry period for your trade. For the risk exposure, start with less than 1 % risk. The reason we recommended to risk less than 1% is to reduce the stress at trading. Since the Signals Binary Options Strategy For MT4 executes the orders after getting all the confirmation, you miss a decent portion of the market movement.
So, if you trade with a 2% risk, you must depend on the price action signal. So, carefully analyze the price action of the market and trade the market with discipline. In each trading session, you should only execute one trade regardless of the result.
And try to find the setup in the overlapping session as the market volatility will be high. Trying to execute options trade in the dry market is a very tough task and results are not that great.
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