vfxAlert Reversal Strategy: Your Guide to Profitable Trading
- VFX Blog
- Strategies
How Do Binary Options Signals Work?
Many traders, from beginners to professionals, wonder whether binary options signals are worth using. Can they enhance your strategy, or are they just a waste of money? The vfxAlert binary signal service demonstrates how to use a reversal strategy effectively.
Strategy Overview
Type: Trend Reversal
Timeframe: M1-M5 (We use M1, but higher timeframes improve accuracy.)
Trading Assets: Any currency pair with a fixed spread (2-3 points) and no hidden fees.
Trading Hours: All Forex trading sessions.
Minimum Payout Percentage: At least 70-75%.
Indicators Used
This strategy relies on two technical indicators:
Parabolic SAR (P-SAR) – Helps determine short- and medium-term trends.
Dots below the price and moving upward → Uptrend
Dots above the price and moving downward → Downtrend
Relative Strength Index (RSI) – Measures the balance between buyers and sellers.
Above 80 → Overbought (end of uptrend)
Below 20 → Oversold (end of downtrend)
vfxAlert uses 70 and 30 levels for greater accuracy.
How to Open a Trade?
A trade is opened when the current trend ends and a confirmed price reversal exists.
CALL Option:
Three Parabolic SAR dots appear below the price.
RSI is moving upward from the oversold zone.
PUT Option:
Three Parabolic SAR dots appear above the price.
RSI is moving downward from the overbought zone.
Important Rule: Before entering a trade, check the last 7 values:
Parabolic SAR should be on the opposite side of the price.
RSI should exit the overbought or oversold zone.
Expiration Time: At least 7-10 minutes, even if using an M1 chart.
Pro Tips for Better Results
Optimize Your Entry:
RSI rarely reaches extreme levels on short timeframes. If both Parabolic SAR and RSI move in the same direction, you can enter a trade earlier.
Best Trading Hours:
Most reliable signals occur during:
The second half of the American session (16:00 UTC onward)
The end of the Asian session (before 06:00 UTC)
These periods have high volatility and frequent trend reversals.
Avoid Trading During Major News Events:
Don’t trade 30 minutes before and after major fundamental news releases.
Use an economic calendar to monitor news events.
Sideways Market Strategy:
Long sideways movements often lead to strong trends.
In such cases, you can open trades when Parabolic SAR reverses and strong vfxAlert signals appear.
Final Thoughts
Before trading, decide which assets you’ll use signals on. The vfxAlert service continuously improves its algorithms to provide reliable signals for forex pairs and cryptocurrencies. However, remember that signals are just recommendations, and the service is not responsible for potential losses.
By following this guide, you can maximize your success using the vfxAlert reversal strategy!