Understanding how to trade options can help increase your performance as a trader. At the same time, binary options also allow us to make more money in the process. We are also controlling the risk. Binary options are easy to understand. This is coming from someone who has little or no experience in the area. If your favorite approach to trading forex is to jump in on a fast price movement and ride the intraday trend for as long as the momentum lasts, you can learn how to make money trading binary options very quickly.

When we first discovered binaries, the light bulb in our heads turned on. No need to worry about how many pips we could grasp in the process. Binary options trading is a form of derivatives trading that has a fixed profit or loss.

Trading binary options is simple. All you need to do is ask yourself a simple yes or no question. Will the price of the underlying asset be worth more than the strike price at the expiration date? Essentially, we can trade binary options for any type of instrument. Second, before submitting our trades, each of these instruments has a current value at any given point in time. How to trade binary options depends on our trading skills. It is used to predict where the current value will be some time in the future.

In other words, we must use our skills to predict the market direction. This will determine our success in trading binary options. The market can only go up or down. If we believe the current value will go up in the near future, then we buy a Call option. On the other hand, if we believe the current value will go down in the near future, we buy a Put option.

Read more about call options vs put options. Third, we need to determine what the most critical aspect of trading binary options is. Being wrong means you incur a loss. We have made a nice infographic that highlights the four steps on how to master binary options trading.

If you manage to figure this out, then knowing how to make money trading binary options will be a piece of cake for you. Our team at Trading Strategy Guides is ready to share with our beloved trading community our second binary options strategy. The mathematical model behind this binary options trading strategy has a proven market edge.

The only tool you need to trade binary options successfully is the RSI indicator. The RSI default settings need a little bit of adjustment if you want to master the 1 minute time frame. We use a 3-period RSI to trade binary options profitably.

Naturally, a lower RSI period means that the indicator will tend to be noisier than normal. But it is more responsive to the immediate price action. Along with the RSI settings adjustments, we also played around with the overbought and oversold readings. We found out that by using an 80 RSI reading for overbought and 20 RSI reading for oversold conditions, we get more accurate day trading signals.

By changing the RSI overbought and oversold line, we have eliminated the noise. The 1-minute binary options or the seconds time frame is the best chart for trading binary options.

In other words, the best binary options expiration time is the 60 seconds time frame. We recommend highlighting the starting point on your charts. And the ending point of your candle low that you have identified. Simply draw two vertical lines on your chart through the starting point and ending point of your 50 candle low. When you count the 50 candle low, you should always start from the current candle. Then go from the right side of your chart to the left side of your chart.

If you manage to count 50 candle low, obviously the starting candle point will be your 50 candle low. Since this is a reversal trading strategy we need the RSI indicator to show a bullish reversal signal.

An RSI reading below 20 shows that the market is in oversold territory and it can potentially reverse. Keep in mind that in order to move to the next step, we need the 50 candle low. We also need an RSI reading below 20 to happen at the same time. We added one more factor of confluence that needs to be satisfied. If used in conjunction with the previous two conditions, it will make you a money maker binary options trader.

When trading reversals, you need to be as precise as possible. The more confluence factors you have in your favor the more accurate the reversal signal is. What we need to see here is for the price to continue moving lower after the 50 candle low was identified. At the same time, we need the RSI indicator to move higher in the opposite direction. If the price moves in one direction and the momentum indicator moves in the opposite direction, it means they are diverging from each other.

This signals a potential reversal signal. The first thing you need to do is to mark on your chart the high of the 50 candles low with a horizontal line. The first candlestick formation that breaks above this high is your trade entry signal to buy a second Call option. Before learning how to make money trading binary options you need a great Binary Options broker.

Secondly, you need a strategy-based trading technique to reveal the market direction. You only need to forecast if the price will be up or down during the next 60 seconds, making it very convenient. We use a heuristic approach to speculate on which way the price is going to move during the next 60 seconds. At the end of the day, traders are looking for a reliable binary options system that will help them make money from trading. The good news is that the best binary options strategy is exactly that system.

Our team is built of many traders with experience in the industry, including binary options traders who know how to make winning trades. Please Share this Trading Strategy Below and keep it for your own personal use!

Thanks Traders! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow.

The article on binary option trading strategy was useful. Thanks sharing for valuable information about binary options. Thanks for the article. Are you referring to building a strategy multi-step indicators in a trading platform? We have four pairs of letters, A-B , B-C, C-D and finally D-E.

I use these letters but you can use the letters you want. You can see that D-E is fib extension When the letters have these retracements and extensions we should expect a reversal in letter E and maybe the beginning of a new trend. This is a very good tool but you should always have a confirmation.

In the screenshot you can see the orange line. The price hit the first time But the question is when you should take the trade. I was waiting for the price to hit the previous day low because in this case is a stronger level than Our RSI was extremely oversold a signal of reversal,too.

Finally the price hit the orange line and a made a big reversal up in the next candle. You can see that now we have the beginning of a new uptrend and it has at least 30 minutes duration.

I predict right in 4 of 5 trades. Just kidding! You can find this information in my first two articles with screenshots. For me, this pattern has the biggest success rate. Look at the letters in the screenshot. We have four pairs of letters, A-B , B-C, C-D and finally D-E. I use these letters but you can use the letters you want. You can see that D-E is fib extension When the letters have these retracements and extensions we should expect a reversal in letter E and maybe the beginning of a new trend.

This is a very good tool but you should always have a confirmation. In the screenshot you can see the orange line. The price hit the first time But the question is when you should take the trade. I was waiting for the price to hit the previous day low because in this case is a stronger level than Our RSI was extremely oversold a signal of reversal,too. Finally the price hit the orange line and a made a big reversal up in the next candle.

You can see that now we have the beginning of a new uptrend and it has at least 30 minutes duration. You could take a call with 1 min,5 min,10, min,15 min or 30 min expiry. It will ITM in every case. Here is a picture with other harmonics. So, the best choice for me is to draw by yourself.

Of course, you can use the free indicators but you should always check if the patterns are right. When all match, you have a sure profit: An introduction to harmonic patterns! Kind Regards, Kostasze.

The market can only go up or down. If you observe a strong movement in the asset chart, the moving averages are most likely to move from a slow to a fast direction in real-time trends. Cookie Name borlabs-cookie Cookie Expiry 1 Year. Our team is built of many traders with experience in the industry, including binary options traders who know how to make winning trades. The dashboard will show you whatever you need, only with just one look at the dashboard, you could decide what trade to open.

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