«Dynamic»: 5 minute strategy for binary options
- VFX Blog
The standard technical analysis tools present on all trading platforms are the most reliable way how to make money on binary option. The “Dynamic” strategy proves this using a trend indicator and an assessment of the dynamics of price movement.
Any in the range M1-M15. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal an increasing.
Any currency pair. The main requirement is a fixed (2-3 points) spread and no hidden fees.
All Forex trading sessions.
Percentage premium option:
Not less than 70-75%.
The strategy uses two standard indicators:
- Bollinger Bands (BB). The indicator reports the direction and volatility of the current trend, and the horizontal movement of the lines will show flat − in this case, it is better to stay out of the market, especially if the price moves in a narrow channel. When the range dramatically expands, you can use longer 10-15 minute binary options trading signals and increase the transaction volume by 10-15%.
- Commodity Channel Index (CCI). Shows the dynamics of price movement or how fast the current trend is growing or ending. As you know, the price of all trading assets (currencies, stocks, futures, indices) moves cyclically between local maximum/minimum. In the strategy, "Dynamic" is used as a confirmation of trading binary signals from Bollinger Bands.
After installing the tools, the terminal's working window looks like this:
Binary options signals:
- Rise (CALL) option. The price pushes away from the lower border of the Bollinger or breaks its middle line from bottom to top. Commodity Channel Index is above zero levels.
The CCI indicator signals that the asset is overbought (that is, it is worth waiting for a decline) if the line went above the level (+100), and oversold (waiting for growth) if the line is below the level (-100).
- Fall (PUT) option. Reverse conditions: the price has not overcome the upper limit of the Bollinger or the price breaks the middle from top to bottom. CCI is below zero.
Open a trade on the next candle after trading binary signals. Time of expiration of options has to be not less than 10-15 minutes even if as a working timeframe it is chosen of minute, as in our video.
Recommendations for use:
- The longer the sideways movement of the Bollinger Bands continues, the higher the probability of a strong trend after its completion. In such cases, you can open trades at the first sign of a CCI reversal and strong binary options signals live from vfxAlert;
- During the publication of important fundamental news and statistics, we do not open options 30 minutes before the news and 30 minutes after the publication; cautious traders can close current deals. To control the events, we use the economic calendar included in the all popular binary trading platform!
- If there is a steady trend, you can open several options with different expiration dates to take the maximum movement with minimal risk. If the broker allows you to close the option before the expiration date, then we will definitely fix the transaction (even if it is in profit!) the appearance of the opposite signal!
Automatic trading according to the «Dynamic» strategy is possible: several versions of binary option bot can be found on the network, but, like on any scalping system, it is better to trade manually using this scheme. This will allow you to more effectively tune the system to market changes, and the multicurrency properties of the strategy guarantee you a stable profit every day.