5 minutes options with Everest strategy
- VFX Blog
|Type:||Trend and flat|
|Timeframe:||Any in the range M1-M5. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal increases.|
|Trading asset:||Any currency pair. The main requirement is a fixed (2-3 points) spread and no hidden fees.|
|Trading time:||All Forex trading sessions.|
|Percentage premium option:||Not less than 70-75%.|
- Doncian Channel (DC) − the horizontal direction of the DC lines confirms the presence of a flat, the breakdown of center lines will be the binary signal of its end. If the range is wide enough, you can open options to roll back from the borders. This method is recommended only for experienced traders!
- The Donchian indicator is not included in the basic set of trading platforms. But it can easily be found for free on the Internet.
- Stochastic − the oscillator will assess the current balance between buyers and sellers: the predictor above level 80 − the end of the uptrend (overbought), below 20 − the end of the downward (oversold).
- CALL option. The price rollback from the lower limit of Doncian Channel or cross its middle line from bottom to top. Stochastic is up or out of oversold (level 20);
- PUT option. Price crosses the DC average from top to bottom or unfolds from its upper limit. Stochastic is down or out of overbought (level 80);
Recommendations about use …
- the «narrower» the Doncian price channel, the higher the likelihood of strong movement after flat completion. The opposite situation is necessary for trading on the edge of borders: the corridor must be at least 30-40 points, otherwise, the options will be unprofitable, even if free binary signals show the right direction;
- even on the minute timeframe, Stochastic rarely goes into the extreme zones and you can miss a lot of good deals. If price and Stochastic start moving in one direction − you can open an option!
- even though you can trade throughout the day, the most profitable results were obtained in the second half of the US session (from 16:00 UTC) and the end of the Asian session (until 06:00 UTC);
- we monitor the binary trading platform for the release of important fundamental news and statistics. We do not open the option immediately after the publication, and, if possible, close the current transaction 15-20 minutes before publication;
- time of expiration can be increased up to 5-7 minutes if the steady trend is observed. Also during such periods, it is possible to open several options with different validity period to take away a maximum of the movement at minimal risk. If the broker gives the chance to close the option until expiration, then surely we fix the transaction (even if it in profit!) at the emergence of an opposite signal!