Fractal Chaos Bands - one indicator for profitable options
- VFX Blog
One tool cannot be a decisive factor in decision making. This is the main principle of technical analysis that all traders who think how to make money on binary option should observe. But, there are exceptions, such as Fractal Chaos Bands, which alone can find a deal that best matches the Dow Theory rule “price takes everything into account.”
Any in the range M1-M5. 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 one indicator:
- Fractal Chaos Bands. One of the most profitable options is «price channel». The upper limit shows the maximum price of an asset for past periods, lower minimum. Their breakdown will be a confirmation of trend and you can open an option.
The indicator is not available on all binary options sites. If your broker does not have this indicator, you can download it for free on the Internet and use it in any other trading terminal (for example, MetaTrader) as a signal to open an option on your account.
After installing the tools, the terminal's working window looks like this:
Binary options signals:
Once again, we remind you that options are opened when the current trend ends with a confirmed price reversal.
- CALL option. The price is above the upper border of the channel or “enters” indicator from bottom up. The second option is only for professional traders!
- PUT option. Opposite conditions - The price is below the lower border or moves inside the indicator from top to bottom.
Another condition is patience. You can try to enter the first candle of a different colour, but it is better to wait for the full binary signals. The expiration time of the options should be at least 5-7 minutes, even if a minute is selected as the working timeframe, as in our video.
Recommendations about use.
- Tools of the same group, in our case, trend instruments, even with different parameters, cannot be a decisive factor in opening a new position. It is recommended to receive additional confirmation from oscillators, for example, RSI, CCI, Stochastic, or vfxAlert binary signal software, which correctly take into account the appearance of overbought/oversold situations and the dynamics of volatility.
- You can significantly improve the result of scalping if you perform analysis on multiple timeframes simultaneously. For example, periods M5-M15 can give a hidden signal of a trend change, which is then confirmed by a deal on M1.
- 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!
- When trading intraday, we recommend performing a comprehensive analysis of the market − as a rule, there are many typical situations on different assets and timeframes, to which Fractal Chaos Bands react the same.
In conclusion, we remind you once again that with the basic parameters of Fractal Chaos Bands, depending on the characteristics of the asset, it can both give reliable signals and be very late even at intervals of H4-W1 (a week). On Forex, watch how binary options signals work and reduce the number of periods if necessary.