Trading A Reversal In Binary Options – Part II

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Trading A Reversal In Binary Options – Part II

Good Day Traders,

Kostasze is here. In my previous article I talked about some spots in my trading style and about the value of Price Action. In this article I will explain more specific with more screenshots how to trade easy and fast a reversal in Binary Options industry.

First of all, take a look in my last trades in 28/3

I took three positions whice were all puts, all ITM. The screen time was only about 15 minutes. This is an advantage of 60 seconds trading. More trading opportunities, more volatility, as I said. Every day, before I start trading I take a quick look in the market. I look always the behavior of the price near Daily Pivots, near High and Low of the previous day and the most recent supports and resistances. You can easily spot these levels with a daily Pivot indicator(daily pivots) and a Daily Fibonacci indicator(daily fibos). The high of the previous day is level 100 in Daily Fibos Indy and the low is level 0. This indicator is a really time saver. Especially in levels 100 and 0 there is the most of the time a reversal.

From the EMA’s and the price, you can see that we are in a big down trend.Look at the box, the price touch the orange line which is level 0 (previous day Low). Our RSI is oversold and the price make a small reversal. After that the down trend will continue but the reserval was made, even in this very strong down trend.

Today trade, EURGBP

Notice the blue horizontal line. In the beginning of the screenhot you can see that the price makes a pull back in this line,this is a support. Some minutes later, the price is moving below this line and then makes a come back. When price hit again this line you can see that the next bar is negative and now the price is moving down.The blue line acts now as a resistance. This is “change of polarity strategy”, when price breaks a support this support can become a resistance in the near future. I took my trade in the blue box. Price hit again the blue line and our 8 period RSI is overbought(price hit level 70). ITM.

Today Trade, EURUSD

Exactly the same setup. I took the trade in the blue box, when price hit the previous resistance and RSI was overbought. ITM.

Ways to trade with the trend: Part II

This is my second article about the ways which I use to trade with the trend. In my previous article I talked about the two things which I want to see to make me sit down and wait for a chance to take a trade in the trend direction. These are lower-highs (downtrend), higher-lows (uptrend) and ABCD pattern. Now, take a look in my chart when I want to take a binary options trade with the trend.

It’s complicated I know. First of all what I use.

– two emas (4 period the green one, 8 period the red one)

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– ichimoku with the default settings(i focus on only in the cloud)

– triple CCI(6,14,34 period) and I add level 0

– Stochastic with default settings(I add levels 20 , 80)

As I said in my first article the key in trading for me is only Price Action. For taking a trade I am waiting for a price action signal and not an indicator’s signal. I use these indicators only to confirm the price action signals.

My entry in the chart is in the blue box(the put arrow). If you remember in my previous article a little bit above of this spot we had a 50 fib retracement of the A-B leg in our ABCD pattern. The question: Is this the right spot to take a trade with the trend?So, we need confirmation. My first confirmation is the triple CCI. I use it to catch the momentum. Above zero level is bullish and below zero level is bearish. I am waiting all the CCIs to be below zero level in this case, we are in a downtrend.

The second confirmation for me is the price to cross down the 2 emas. This is a sell signal. In this case the same time the price breaks down the ichimoku cloud. This is another sell signal.

Now, let’s go to the stochastic oscillator. When the price made the 50 fib retracement the stochastic was still moving up. After the retracement we have two small green candles so we had to wait. Then the next candle is red and big and in the stochastic oscillator we have a crossover(the red line is now above the blue) near level 80(overbought area). So, with the price action signals, ABCD pattern, Fibonacci and the confirmation of the emas, CCIs, ichimoku and stochastic we have so much confluence and now it’s the right time to take a put. I prefer 5 minutes expiry in this case. Look at the chart our trade is a solid ITM and after that the price is still moving down.

– We identify the trending market

– we identify the fib reversal

– we wait for the confirmation and the right time and we jump in

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