Trading Binary Options When is the Best Day to do it

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Strategy for a day in binary options trading

Binary options for the day — medium-term strategy for those who can’t hold a computer for several hours and constantly watch for the appearance of signals. Short-term strategies require maximum concentration and attention, while the forecast for one day or even a week is a part time job, a nice addition to the main work. The trader needs 10-20 minutes per day on the search of signal and understanding the indicators on the long frames. About the rules of trading on long time frames and examples of binary strategies read on!

The rules of options trading with an expiration period of one day

Binary options trading with an expiration period of one day or more has several advantages:

  • on the minute charts indicators strategies show a lot of false signals because of price noise, the nature of which is unpredictable fluctuations, confounding the understanding of the direction of the trend. Daily chart price keeps out noise and keeps the price slide (slip on the minute indicators zero deposit);
  • day tactics are often used to trade at the end of the day one of the sessions, when binary options trading activity is on the decline;
  • low risk in comparison with scalpers strategies.

Trading rules and strategies of work with binary options for day:

  • choose a broker that gives the possibility of early closure of option. If the trend went the wrong way and wait for the end of the day makes no sense, prematurely closed binary option will save time and minimize the loss;
  • try to close positions before the weekend. The weekend markets are closed. In addition to swaps (payment of a fee for transferring of your position), the trader may lose money because of the gap — the gap between closing price and opening day;
  • binary options for day does not mean you have to put the expiration of 24 hours. This means that the analysis uses daily charts, and expiration can be set for a few hours.

How to trade binary options 24 hours: tactical strategy

1. Strategy on the news

In short time frames the strategy on news in binary options is not recommended, you can not say about long ones. At the time of news the market is volatile (volatility may last a day). Institutional investors (they set the basic direction of prices) estimate associated with the solution (news) the factors and make a decision. The first 30 minutes of mood are not clear, but the direction of the price will gain direction. Make a deal for a few hours and make money with big investors!

  • Example: on the eve of the weekend on Friday at 15.30 05.05.17 report was published Nonfarm Payrolls (to be released in the last day of the first week). With the forecast of 185 thousand new jobs fact amounted to 211 thousand That’s how the dollar responded this day:

At 15.30 at the time of publication of information the investors chose to temporarily close positions, that led to small dip in the first 30 minutes. Another 30 minutes took the traders to an assessment of the situation and by the evening of Friday, the dollar reached a maximum, which instantly collapsed on Monday morning. Insights:

  • binary options can bring a guaranteed profit when you open an hour after news in the direction of the main trend. Expiration of about 1-3 hours;
  • before the weekend, at the end of the week binary options shall be closed.

2. Strategy on indicators

2.1 Binary strategy Momentum and EMA

Binary strategy, close to classical designed for medium-time frame with the opening of the transaction at the end of the day. You can trade any liquid pairs. The main rule of binary options — with forecast to clearly observe the coincidence of all indicators together. Trading conditions:

  • expiry time for binary option — the end of the day;
  • time frame — 1 hour;
  • indicators: candles, Momentum (18), EMA (24).

Signals for purchase of binary option:

  • the candle body is wholly or at least 80% crossed EMA upwards;
  • Momentum indicator above the zero level.

Signals for sale of binary option:

  • the candle body is wholly or at least 80% crossed EMA upwards;
  • Momentum indicator below the zero level.

The end of the week, chosen at random. At this point novice traders go out of the market, leaving the strong players that will not destabilize the market. You can trade without the risk that the deal will suddenly unfold for unknown reasons.

2.2 Binary strategy “the Last hour”

I could cite you examples with a complex indicator strategies of binary options allegedly modified under the trade in the last hours of the day (SuperWoodieCCI modified oscillator Signal of MA Crossover modified sliding). But it makes no sense. All these strategies by the end of the day have not the slightest relationship. We offer you a simple candlestick analysis, which can supplement MA:

In this figure it is seen that the rising candle started to form at 19.30 (GMT) and at 21.00 you could earn. The essence of the strategy in the following:

  • at the end of the day the traders begins to lock position. If to the last hour the trend was decreasing (the majority of opened positions), the fixation position is going to mean growth of the trend. Conversely, if the market grew, the position fixing would mean a sharp turn;
  • set timeframe strategies 5 minutes or 15 minutes. Waiting for the last hour, enter the market with the expiration of a maximum of 30 minutes. For the last 15 minutes usually there is a collapse.

In the picture above before opening a position at the end of the day was flat. So on the circled candle it would be dangerous to enter, entrance no later than 19.45. But with understanding of trend direction, everything becomes simple. Below is a more accurate entry signal.

Up to 20.00-formed downtrend, 20.15 candle draws a turn, enter the market. At 20.45 close option. On the chart it will look like this:

At 20.00 Began to form a drop-down reversal of the trend (fixation of position), at 20.15, the trend went up (yellow circle), at 20.15, the option was closed. By the way, we are not alone work by this tactic, it’s the only explanation why in the last 15 minutes (20.45) the price has gone down.

  • Important! We have put together two options of the situation. In the first case, the entrance to 20.00 would bring a loss and the second – profit. The reason the preliminary state of the market. The strategy only works when before the last hour there was a pronounced decrease or increase.

Summary. Forecast of transactions in binary options one day is done by the hour or daily charts. We recommend you to view both timeframes. If the direction of the price is the same, then it’s the signal to open trades with expiry equal to the lesser timeframe. Day strategy is recommended for those who have most of the work, not ready to be at computer and seeking regular trading. We will be glad if you share your strategies of binary options for the day or leave a few tips for our readers in the comments after the article!

Day Trading Binary Options – Live Lesson

Video Transcription

Hello traders. Welcome to the Binary Options Day Trading Live session. Today we’re going to day trade the Euro/U.S. dollar, the U.S. dollar/Swiss Franc, the Euro/Yen and the GBP/USD.

First of all what we need to do is go to the one hour chart and see where we are at with these currency pairs. Let’s start with the Euro/U.S. dollar. Okay. So the Euro/U.S. dollar as you can see has come to an area of heavy resistance around here. If we pull out the Fibonacci levels from this high to this low, we can see that actually we have reached the 61.8 level.

So what we are going to is we are going to buy puts on this currency pair for a 30 minute expiration option. We are going to make a $100 put on the Euro/U.S. dollar. Now, let’s go back to the charts. As you can see here, is a pretty easy setup. We have a double top after this huge move up, so I’m very confident on this setup.

If we go back to the tile charts and let’s go to the Euro/Yen. This is the Euro/Yen one hour chart. As you can see here, we are at this low. If we go to the five minute chart of the Euro/Yen, we can see that we are actually right there at support. But we don’t have a confirmation yet that these levels have been rejected. So we are going back to the one hour chart and we are going to pull the Fibonacci retracement levels. We’re going to add one ratio to these Fibs, which is the 88.6 ratio. Which is an important level, it is not on this Fibonacci by default, but we like to add it on our trading.

Here we are almost at the 100 Fibonacci level, which means that we have almost retraced 100% of this entire move up. What we are going to do now, is we are going to pull another Fibonacci level from this low to this high to see if this actually confluences with the levels that we have here.

Let’s color it black so we can make the difference on the five minute chart. Here’s the five minute chart and the Fibonacci levels confluence right here at the 78.6 with the 61.8. We have broken through all of them.

I don’t think that we have a confirmation just yet that this area of support has been rejected. So we are not going to trade the Euro/Yen at this time. We need actual confirmation of rejection.

Let’s go to the GPB/USD This is the one hour chart. Let’s go to the four hour chart to see where we are at. You can see here that we have this spike high and we also have this area of resistance right here. We are at this area of resistance.

Let’s pull some Fibonacci levels out to see where we are at. You can see that the 78.6 confluences perfectly with this spike high, with this level of resistance. Based on the four hour chart, we can’t say that this area has been rejected. But, what we can say is that we are right there and we are going to look at the five minute chart to see if we can actually trade this to the downside. Let’s pull some trend lines right here.

You can see that this high has been respected clearly. You can see that we are actually making higher lows, which means that, well, we can’t say that this is a triangle. This is basically a wedge, and what we are going to do here is that we are going to buy puts on this currency pair too. Grab the GBP/USD for a 30 minute expiration option, where we are going to buy puts right here at resistance.

We are trading the GBP/USD and the Euro/U.S. dollar. The Euro/U.S. dollar has moved against us a little bit, but it doesn’t matter guys because what we are doing here is we are giving our trade room to breathe, room to move in our favor.

Let’s go back to the Euro/U.S. dollar one hour chart and let’s see what this currency pair is doing. We are here right at resistance of the 61.8 retracement and if we go back to the 15 minute chart, you can actually see that we are making higher lows and we have broken with them.

This can be a fake out and cannot be a fake out, but as you can see, price is actually moving down in our favor and this is why we are giving this trade 30 minutes in order to move in our favor.

If we go to the Dollar/Swiss Franc one hour chart, you can see that we have moved all the way down. I don’t think that we have a clear setup to buy any binary options on this pair.

So what we are going to do is we are going to try to trade the Aussie/U.S. dollar. If we go back to the four hour chart, to the data chart of the Aussie/U.S. dollar, you can see that we have actually broken with this massive area of resistance. Tested after [inaudible 00:06:59] support.

We tested it again a few days ago as resistance and we have now broken to the upside. If we grab a Fibonacci level from this high to this low, you can see that we have broken with the 61.8 level too. But if we grab a line here and put it on this spike high, you can see that the actual area of resistance is this one.

If we go back to the one hour chart, just to see what price is doing above this area of resistance, you can see that we have printed one, two, three candles. Three one hour candles with long wicks to the upside.

Remember that candlesticks give you a sense of the market bias. This means that even though double pressure was there, because we moved all the way down up here, we are closing all the way down here. There is a clear resistance at this area.

Let’s go back to the five minute chart and you can see that we have cleared this area of support. What we are going to do here is we are going to buy puts on the Aussie/U.S. dollar. If we go to the Aussie/U.S. dollar and choose a 30 minute expiration option, where we are going to buy puts. So we are trading puts or we bought puts on the Aussie/U.S. dollar, on the GBP/USD and on the Euro/U.S. dollar.

As you can see price has moved literally a few pips above our entry zone or entry level, but that doesn’t matter because we are giving the trade room to breathe, room to take direction.

Let’s go back now to our charting platform and let’s go and try to trade the U.S. dollar/Canadian dollar to see if we actually have a setup right here. The 15 minute chart shows what seems to be here, a bottom, okay? A base. When price creates a base, it means that it tests the same area as support several times.

Now, let’s go to the one hour chart to see if we have actually a level to trade from. As you can see, the one hour chart shows that we are still making lower lows. If we want to count a trade, we have to look for areas of actual support. So we have found one right here, but we broke with this area.

The next area of support is this spike low, which we have tested with this wick right here. The red candle went all the way to this area of support, but closed above. Making it a rejection on the four hour. And the next candle started open above the area of support and it’s printing loose.

If we go back to the five minute chart, you can see that we have actually moved above this area of support. Right now we are printing a massive candle to the downside. What we are going to do here, since we are on the five minute chart, we are going to pull the Fib from this high to this low.

You can see that we actually rejected the 50 level so we are going to buy puts on a very short term trade on the U.S. dollar/Canadian dollar.

Now we buy puts on this currency pair and let our trade breathe. Now we have four open trades and we will be back when these options expire to see how we did.

Okay, we are back and as you can see, two of our trades ended up in the money and two of our options expired out of the money. This means that we had a 50% accuracy in our trading today.

The thing about the GBP/USD and the Euro/USD dollar is that we’ve lacked follow through to the downside. This can happen when we lack momentum, so we need to choose the correct times of the day to trade.

More About Adam

Adam is an experienced financial trader who writes about Forex trading, binary options, technical analysis and more.

Trading Binary Options: When is the Best Day to do it?

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