Trade Binary Options Using Trend Continuation Patterns

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Contents

Trend Trading 60 Second Binary Options Strategy

How to Setup Strategy

Chart Setup

Please open account with ExpertOption broker by clicking HERE!
Please change chart on candlestics chart with period of 10s

To change it click on first icon on this tool bar

Indicators

Please select from indicators list – Alligator Indicator

Indicators Settings

Please setup Indicator with default settings:

Please open trend list from right side

Trend Trading 60 Second Binary Options Strategy

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Trend trading 60 second binary options strategy is a rapidly growing trend strategy. It has become one of the most popular and most profitable binary options trading modality. Professional traders are always looking for new patterns and new techniques that allow them to increase their trading revenue in the shortest period in order to get the most from their investment. 60 second binary options strategy is the best trend strategy to increase your binary options investment revenue faster, and with the assistance of the alligator indicator, this trend strategy can be used by any trader. Trend trading 60 second binary options strategy is considered for some stockbrokers the new trend trading revolution for its revenue generation potential.

What is trend trading?

Trend trading is a trading strategy, which consists in identify an asset’s price that is trendy and trade or bid only on this condition. It means that the price moving direction will be kept in the same direction without changing it for a period. Trend trading is to buy or sell any asset only when the asset’s price or market is on trend, or it follows a distinct tendency for the price moving direction. John William Henry in 1976 developed the trend strategy, after years of technical market analyses he found that there are hundreds of trading patterns, which are repeated over time. Each of the obtained patterns always repeats the same price moving direction and exhibits clear signals which make easier to recognize it and anticipate the asset’s price moving direction. The trend strategy can be applied systematically and get fantastic results, for this reason, thousands of traders only bid on trend trading assets.

What Is Trend Trading 60 Second Binary Options Strategy?

The trend trading pattern can be applied for any expiration time or for any binary options maturity time. Trend trading 60 second Binary Options Strategy used the same trend strategy, but the technical analyses and the price pattern are evaluated for each 60 seconds. It maximizes the profits potential by allowing traders who have recognized the assets in trend trading to get repetitive dividends over time for the same trend trading period. 60 second Binary Options Strategy is the application of the trend strategy to a 60 seconds periods for binary options trade. Thanks to the price anticipation and the signals each price patterns offers, traders can anticipate with great certitude and incredible precision the next price moving direction for assets’ price and even they can estimate when the trend could end and the price will experiment a moving direction variation.

In a nutshell: Trend trading 60 second Binary Options Strategy is a trend strategy or technical analysis that allows anticipating the future asset’s price moving direction over a 60 seconds period with an extraordinary certitude. It identifies a price trend for an asset for each 60 seconds giving the opportunity for traders to buy binary options calls or puts accordingly to it and increases the investment revenue substantially.

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Trend Trading 60 Second Binary Options Strategy – How to read the indicator?

Trend Trading 60 Second Binary Options Strategy is based on 10 seconds candlestics and one indicator called ALLIGATOR INDICATOR. If you want to read more about Alligator indicator please click HERE . We was review Alligator Indicator before with similar strategy. Many people using Alligator Indicator wrong because they think that when the alligator twist then they should invest.

Many of trader think that when red line crossing alligator from bottom than you should invest call, and when red line is crossing indicator from the top than invest put- THATS TOTALY WRONG, DO NOT FOLLOW THIS RULES

Alligator Indicator is really good to recognize the Trend and its propobly one of the best indicators for this, as Trend Trading is good for 60 second binary options strategy.

Trend Trading 60 Second Binary Options Strategy – When to NOT invest?

One most important rule is that when Alligator Indicator is sleeping than you should wait and NOT INVEST. You should focus when Indicator start Awaking.

See chart where you should NOT invest.

Open CALL

When all lines have big distance between, and when candlestic toutch the red line from top (important rule to invest in right time) than you should invest CALL.

See examples of CALL Options:

Open PUT

When all lines have big distance between, and when candlestic toutch the red line from bottom (important rule to invest in right time) than you should invest PUT.

See examples of PUT Options:

Trend trading 60 second Binary Options Strategy does not guess or tries to predict the future, on the contrary, it uses a mathematical model to identify some signals and recognize previously recorded trading patterns and act accordingly to that information, giving an edge to traders who can anticipate the market movement.

Understanding Trend trading 60 second Binary Options Strategy

  • Trend trading is trading only when the asset’s price is on trend or whiting a clear price moving direction for a period.
  • Trend Strategy is the technical analysis used to recognize a price trend and trade accordingly to it.
  • 60 second Binary Options Strategy is the application of a trend strategy for a 60 seconds period, or to trade only on trend trading binary options assets with an expiration time of 60 seconds.
  • Alligator Indicator is one of the most used indicator to recognize and confirm a trend trading asset’s price.
  • Price pattern is a recorded and evaluated over time, unique asset’s price movement, or market behavior, which permits anticipate the next price moving direction, giving the opportunity to traders to know where the price will be headed in the next trading periods.
  • Maturity timeis the expiration time for binary options or the time when the binary options price must be anticipated to get benefits.
  • Trend trading reversalis the change in the price moving direction of an asset, which is on trend.

How to make Trend Trading 60 Second Binary Options Strategy works ?

1. Evaluate the assets price charts and utilizes a 60 second binary options strategy, be sure that your price patterns and signals are set for a 60 seconds period.

2. Identify a trend trading that is in place and set the binary options expiration time to 60 seconds to apply the 60 second binary options strategy.

3. Find a low-risk entry point according to the 60 second binary options strategy.

4. Set your exit if you are wrong or stop loss point following the 60 second binary options strategy criteria.

5. Once the trade becomes profitable, you are required to reevaluate your 60 second binary options strategy, reset your stop loss point to reflect your current trend strategy.

6. Use alligator indicator to confirm that the asset is in trend trading.

7. Be patient to stay in the trending for its duration but don’t wait to reach top or bottom. Overstaying on a trend trading can lead you to lose momentum and experiment a price reversal.

8. Follow your money management plan for your 60 second binary options strategy and buy calls or puts accordingly to your preset amounts.

9. Do not over or under bid. You must stick to your 60 second binary options strategy and money management plan.

10. Set your take profit or exit point always based on your trend trading 60 second binary options strategy and respect it.

11. Once you are out of the trend trading or exit the market, you need to go over it and evaluate how accurate was your information and be ready for your next investment following to the letter the 60 second binary options strategy.

What is alligator indicator?

Alligator indicator is a financial instrument, which identifies a price trend presence, and its price’s moving direction. It is used in trend strategy; Bill Williams created it in 1995. The alligator indicator consists of the graphical representation or three smoothed moving average calculated at 5, 8, and 13 periods. A drawn line graphically represents each one of the smoothed moving average calculated over a price chart with a particular color key. This color key accelerates the information delivery speed for traders to minimize the technical analyses delay for trend trading. The accelerated delivery information capacity of the alligator indicator makes it the most suitable and accurate trend trading indicator for 60 second binary options strategy.

Understanding the Alligator Indicator Formula for Trend Trading For 60 Second Binary Options Strategy.

  • Alligator’s Jaw (Blue line) is the graphical representation of the 13 60-seconds periods for the trend trading 60 second binary options strategy.
  • Alligator’s teeth (Red line) is the graphical representation of the 8 60-seconds periods for the trend trading 60 second binary options strategy.
  • Alligator’s lips (Green line) is the graphical representation of the 5 60-seconds periods for the trend trading 60 second binary options strategy.
  • A trader needs to wait until a real trend is present and he needs to be patient to apply his 60 second binary options strategy
  • When the lines are entwined, the alligator is sleeping, and the message is to wait and stick to the 60 second binary options strategy.
  • When the lines cross, it is a clear sign to take action because a price trend is starting. The trader needs bid accordingly to his 60 second binary options strategy.
  • When the lines are apart, the alligator is eating, and the trader should hold or stay in the trade as long as the candlestick formation rides above or below the alligator since the current price trend will continue for the studied period. Therefore trader must adhere to his 60 second binary options strategy

Benefits of Trend Trading 60 Second Binary Options Strategy

Well-established price patterns, which allow easy recognition and anticipate the next price moving direction.

Diverse 60 second binary options strategy, which can be applied by any trend trading trader.

Accurate indicators such as alligator indicator, which confirm the price trend presence.

Incredible revenue potential, since traders can buy the same assets several times during the trend trading and maximize their profits.

Fast build wealth since trader can buy new binary options each 60 seconds. Making the 60 second binary options strategy the fastest way to increase your money once you identify a price trend correctly and bid accordingly, your options will end in the money each time.

Anticipation of the next price moving direction, using the price pattern, and trading pattern recognition and the alligator indicator to confirm it, traders who used the 60 second binary options strategy can anticipate the future market behavior or the next asset’s price moving direction by a great certitude.

Trend Trading 60 Second Binary Options Strategy is one of the fastest way to increase your revenue thanks to the ability to buy new binary options each 60 seconds. Once the trader identified a price trend accurately, he can take advantage of knowing the next price moving direction and bid accordingly. It decreases the uncertainty. Various trend strategy can be used for trend trading; all of them are based on trading patterns recognition and asset’s price moving direction anticipations. The alligator indicator confirms the presence of a price trend in easy to read graphical representation, for this reason, it is the most widely used in trend trading 60 second binary options strategy.

Patterns for binary options trading

Patterns of binary options can often tell the price trend for the medium and long term. Professionals can track the formation of the figures for a short period, but due to the price noise, the momentum of the trend of boundaries of shapes may be blurred. So pattern analysis applied to long time frames to identify the general trend of prices with the subsequent levels of support and resistance and also to determine the onset of flat, pivot points, etc. What are the patterns in binary options, what are the figures and what they indicate, read on.

What are the candlestick patterns for binary options and how to work with them

Analysis in binary options trading can be fundamental and technical. Technical analysis can be divided into indicator (overlay on the chart moving averages, oscillators and other compound instruments), candlestick and pattern, they are closely intertwined, but have fundamental differences.

Binary options patterns – a sustainable model in the chart, which most likely determines the future behavior of the market. Pattern theory is based on the fact that in the long historical period there is a repetition. So at the time of formation of the template shape, based on historical experience, we can assume, where the main trend will be directed.

Rules of work with candlestick patterns:

  • building shapes can be seen on the M5-M15, but to confirm it you need to get a confirmation signal on the timeframe H1 minimum;
  • “pattern in the pattern”. Model “Head and Shoulders” reversal quotes of the asset. But it can also be the ordinary wave correction. We set a longer timeframe. And if we see that the model is part of the “Triangle”, then we are not talking about a drastic change in direction quotations, but on the formation of the flat;
  • pattern theory works in relatively calm markets, at the time of radically fundamental factors of building pattern models can be destroyed;
  • nobody forbids you to create your own model. They are like like strategies — you can follow the already designed rules, you can invent and perfect something different;

Types of candlestick patterns in binary options trading and building of strategies based on them

Patterns types can be divided into several groups:

  • uncertain. (Example — Wedge). Not always lead to a change in the trend direction, are used for primary research of market condition;
  • continuation of the trend. (For Example — Flags, Pennants). Are confirming of the main direction of prices;
  • trend reversal. (Example — Head-and-Shoulders, Double top). Signal that passed the point of reversal of the market, but can also be a signal for correction.

The most famous and simple pattern market models

1. Double top

A reversal binary options pattern. I would like to emphasise that the figures should have different peak values. If the stock of the asset after 2 peaks drops below a support level it is likely there will be a final reversal. For the graph, apply a line of the main trend.

In reality, the price line is not so unambiguous, that is, those zigzags in practice will not be present. Therefore to confirm the pivot point Fibonacci retracement and oscillators can be used.

2. Triangle

There are three types:

  • symmetrical. Formed in a time when there is no accurate information on the direction of movement. Speaks of the uncertainty of the market, a binary option cannot be opened;
  • in a downtrend. Suggests that prices do not have constant horizontal resistance level, but there is a horizontal support to which the price line is approaching. We can only wait for the time of the breakdown and open a binary option on sale;
  • upward. The opposite triangle which has stable horizontal resistance level. At the time of the breakout we should buy binary option.

The latest figure in practice you can displayed the following way:

3. Pin bar

Pin-bar — old, time-tested reversal candlestick pattern that is formed in the moment of sharp movement and equally sharp reversal. Its characteristic signs — a short candle with long shadow, directed in the direction of previous momentum. The pattern is relatively easy to catch:

  • waiting for upward movement in a few candlesticks of the same color;
  • at the top of the peak a short candle with a big shadow is drawn, the next candle is on the decline.

Perfect signal — the short candle still rising, but even a reversal candle is fine.

The image above shows the formed pin-bar, which, however, is not confirmed by the stochastics. There are risks really, because you can open a binary option only when explicitly following the formation of falling candlesticks.

4. Absorption

This candlestick pattern works on the principle of a conventional stair. Any growth is usually followed by a decline, provided that this is not a correction of the continuation of the rise. The fact that this is not the correction is confirmed by the absorption of the reversal of the previous candle.

Please note: the second rising candle is the last, after which there is a falling candle, and it is in size more than the previous rising. Stochastic, albeit not clearly, but also shows some overbought asset. One of the advantages of the pattern is a relatively frequent appearance and smooth slippage of the broker. There are times when graphics are redrawn, but it doesn’t have a fundamental impact on the pattern.

5. Flag

New traders often make mistakes in identifying this candlestick combination. The flag consists of a few candles (6 or more), so it is difficult to identify. But it definitely shows the potential direction for trade.

Partially the flag is reminiscent of the tactics of the purchase of the option on the break of the level, and the line of the flag is a time of resistance and support.

Those who worked with pattern strategies, can meet such a thing as “PriceAction” — movement of prices. This term came to binary options from the European market and essentially means the same analysis of the market. And let the PriceAction can possibly be met on the sites— PriceAction is the common name for forecasting the direction of the quotations without indicators on candlestick combinations.

Another popular trading strategy is “Last breath”. Despite the beautiful name, the principle of trading tactics are classic: you have to draw support levels (resistance), wait for their achievement and at the moment when an opposite candle appears open binary option. “Last breath” is the last candle, where the trend slows down and turns around. Due to “sigh” the fact that traders, making rate of growth (decline), understand that the required levels are reached, and close position. And this is another example that there are basic tools on which dozens of slightly differing tactics are built.

A practical example of binary options patterns application

Alas, in practice, work with pattern strategies is very different from theory. Whatever the precise technical analysis, the appearance of candlestick patterns may not guarantee successful opening of the position.

In the figure we see the simultaneous combination of two patterns (a circle). On the one hand, the absorption of visible blue candles by red one, but the stochastic is at 50, so it is impossible to say whether the declines are temporary. Just in a minute red candle draws huge shadow (the appearance of the marked yellow arrow). In accordance with the pattern of “pin-bar” this may indicate a divergent trend in growth and stochastic went in the oversold zone. It would be possible to take the risk to open a trade with expiration of 3-5 minutes, but the risk would be too great.

The next minute Japanese candle again draws the decline, while stochastic begins to unfold. Skip the first growing candle — it does not correspond to the models of absorption, therefore there is the probability of a downward correction. Only when the second is drawn a growing candle, stochastic lines cross over and leave the zone “0-20”, open a minute option (the appearance is marked by the rhombus).

The strategy has paid off and that the stochastic did not disappoint, and the candle went straight up. Expiration of even 5 minutes was successful, but 70% of the income is enough. Earn 7 USD, but we understand that in practice to catch the exact pattern binary options trading without having practice on demo account is very difficult. Theory is very different from the practice.

Summary. Patterns in binary options are an auxiliary tool and, in exceptional cases, there may be an independent strategy. One of the biggest challenges is to see the shape and to make a correct forecast. The market is volatile, speculative and institutional investors can easily ruin an emerging figure. Partly to reduce risk to the trader the analysis of several time frames and a combination of candlestick analysis with technical indicators will help. Ask all questions about the use of patterns in the comments after the article!

Trend Continuation Patterns

If you look at the chart with a strongly pronounced trend you can see places where the price has consolidated during its movements forming the same type of figures. These formations are trend continuation patterns which are often used by traders for making decisions. Trend continuation patterns are formed during the pause in the current market trends, and mark rather the movement continuation than its reversal.
By contrast with the model of trend reversal, the figures are often formed at shorter time intervals.

Ascending Triangle: Forex Chart Pattern

Ascending Triangle pattern is represented by a narrowing price range between high and low prices, visually forming a triangle. The main distinctive feature of this type of triangles is that it generally has a horizontal trendline (resistance) connecting the highs at roughly the same level and an ascending trendline (support) connecting higher and higher lows.

Descending Triangle: Forex Chart Pattern

The Descending triangle is represented by a narrowing price range between high and low prices, visually forming a triangle. The main distinctive feature of this type of triangles is that it generally has a descending trendline (resistance) connecting lower and lower highs and a horizontal trendline (support) connecting the low points at approximattely the same level.

Symmetrical Triangle: Forex Chart Pattern

The Symmetric triangle is characterized by a narrowing price range between high and low prices, visually forming a triangle. The main distinctive feature of this type of triangles is that it has a descending trendline (resistance) connecting lower and lower highs and an ascending trendline (support) connecting higher and higher lows. The trendlines’ angles are roughly the same.

Rectangle Pattern (Bullish): Forex Chart Pattern

The rectangle pattern is characterized by two parallel trendlines representing support and resistance levels respectively connecting the most recent lows and highs of the price, holding a certain bunch of price fluctuations within.

Rectangle Pattern (Bearish): Forex Chart Pattern

The rectangle pattern is characterized by two parallel trendlines representing support and resistance levels respectively connecting the most recent lows and highs of the price, holding a certain bunch of price fluctuations within.

Flag Chart Pattern: Forex Chart Pattern

This pattern is represented by two parallel trendlines, a support and resistance, holding the range between high and low prices within, visually forming a parallelogram or a flag and generally directed against the main trend. The pattern is often characterized by a sharp price entering after intensive movement.

Pennant Chart Pattern: Forex Chart Pattern

This pattern is represented by two converging trendlines, support is upward sloping and resistance is downward sloping, visually forming a triangle, which conclude price fluctuations within. The pattern is often characterized by a sharp price entering after intensive movement.

Wedge Chart Pattern: Forex Chart Pattern

The wedge graphical price model is a minor, short-term, trend continuation pattern that shows the previous direction will prevail in the future after its formation. As for the daily chart the pattern is generally formed within a week.

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