Forex Closed? Trade Cryptocurrencies on Weekends!

• VFX Blog
• Strategies

When the forex and stock markets close for weekends or holidays, it doesn’t mean trading has to stop. Cryptocurrencies offer a great alternative, allowing traders to continue earning through binary options. This guide explains a simple strategy for trading cryptocurrencies using reliable signals from vfxAlert.

Challenges of Trading Cryptocurrencies in Binary Options

Cryptocurrency trading often has a lower profit percentage per transaction than forex pairs. For any trading strategy to succeed, the profit rate should ideally be at least 75–85%. Lower percentages make it harder to recover losses effectively. This is where a solid approach backed by vfxAlert signals can help improve your success rate.

Strategy Setup: Tools and Indicators

For this strategy, you’ll need a combination of tools:

    1. Bollinger Bands (BB):

    - This indicator helps identify flat markets (when BB lines are horizontal) and breakout moments (when prices cross the boundaries).
    - Narrow BB channels suggest an imminent strong price movement, while wider channels are suitable for bounce trades.

      2. vfxAlert Signals:

    - These signals are based on advanced trend and reversal algorithms, offering clear insights for placing trades. They work well with Bollinger Bands to confirm price reversals or trend continuations.

How the Strategy Works

After setting up the Bollinger Bands and accessing vfxAlert signals, here’s how to trade:

     Step 1: Identify the Market Condition

     - Flat Market: If Bollinger Bands are horizontal, the market is in a consolidation phase. Wait for a breakout to confirm the start of a new trend.
     - Trending Market: If the price breaks the upper or lower Bollinger Band boundary, look for a trade in the direction of the breakout.

    Step 2: Confirm Signals with vfxAlert

vfxAlert provides two key types of signals for this strategy:

•  CALL Option:
      - Look for signals showing a price reversal to the upside.
      - Confirmation: The price should rise from the lower Bollinger Band or the middle line. vfxAlert signals should align with this movement, showing a strong BUY recommendation.
•  PUT Option:
     - Look for signals indicating a price reversal to the downside.
     - Confirmation: The price should fall from the upper Bollinger Band or the middle line. vfxAlert signals should be confirmed with a SELL recommendation.

    Step 3: Patience and Execution

    - Enter the trade only when vfxAlert confirms the direction with high accuracy.
    - The expiration time should be 5–7 minutes, even when using shorter timeframes (e.g., 1 minute) for signal generation.

Practical Example

Suppose the Bollinger Bands indicate a narrowing price channel. A vfxAlert BUY signal aligns with the price bouncing from the lower boundary of the channel. This is a strong indication to open a CALL option. On the other hand, if vfxAlert shows a SELL signal during a breakout below the lower band, it’s time to open a PUT option.

Why Use vfxAlert Signals?

 - High Accuracy: vfxAlert combines trend indicators and statistical data to provide precise signals.
 - Convenience: No additional charting tools are required, making it easy to focus on signal quality and market behavior.
 - Flexibility: Works seamlessly with Bollinger Bands to ensure trades are placed at optimal moments.

Final Thoughts

Cryptocurrencies are an excellent trading asset, especially when traditional markets are closed. Using Bollinger Bands and vfxAlert signals together creates a reliable and straightforward strategy.

 - Confirm signals with vfxAlert before entering trades to reduce risks.
 - Use proper money management and avoid overtrading, even if signals appear frequently.
With this approach, traders can achieve consistent results and take advantage of cryptocurrency markets 24/7.

An example of the strategy can be seen in the video: https://youtu.be/ZXLFfJVFwGc?si=kLXJ0eO8aHXoTPRW