Binary Strategy Pathfinder: Trading Flat Markets and Reversals

• VFX Blog
• Estratehiya

Binary options generate the highest profits when trades are opened at the very beginning of a new price movement. This is especially relevant when the market exists in a flat (sideways) range — a condition where it spends up to 70% of its time. The Pathfinder binary strategy is designed to identify such moments and helps traders effectively enter trades both on breakouts and on reversals from the boundaries of the range.

Key Features of the Pathfinder Strategy

• Strategy Type: combined (works in both trend and flat markets)
  
  

• Timeframes: from M1 to D1. Higher timeframes improve signal accuracy
  
  

• Assets: any currency pair with a fixed, narrow spread (2–3 pips) and no hidden fees
  
  

• Trading Hours: all Forex sessions
  
  

• Payout Rate: at least 70–75%
  
  

Indicators Used in the Strategy

Pathfinder uses three standard technical indicators:

• SMA (Simple Moving Average): helps identify the current trend direction
  
  

• Bollinger Bands: horizontal bands indicate a flat market; a breakout signals a new move. If the range is wide, you may trade reversals from the borders — suitable for experienced traders only
  
  

• RSI (Relative Strength Index): measures the balance between buyers and sellers. Above 70 indicates overbought (trend likely to end); below 30 indicates oversold (trend exhaustion)

Binary Options Trade Signals with Pathfinder

• CALL Signal: price and SMA bounce from the lower Bollinger Band or cross the middle band upward; RSI is rising and not in the overbought zone
  
  

• PUT Signal: price and SMA bounce down from the upper Bollinger Band or cross the middle band downward; RSI is falling
  
  

The recommended expiration time is 3–4 minutes, even on a 1-minute chart. In strong trends, it can be extended to 5–7 minutes. The narrower the Bollinger Bands, the higher the chance of a sharp move after a flat. For boundary trading, the opposite applies — the range should be at least 30–40 pips; otherwise, trades may turn unprofitable even if signals are correct.

Tips for Binary Options Trading

• RSI rarely enters extreme zones on the 1-minute chart — don’t wait for it. If RSI and SMA are moving in the same direction, consider opening a trade
  
  

• The most profitable timeframes are from 16:00 to 20:00 UTC (US session) and up to 06:00 UTC (end of Asian session)
  
  

• Avoid trading during major news releases — close trades 15–20 minutes before announcements
  
  

• Consider opening multiple trades with staggered expiration times to maximize movement capture and minimize risk
  
  

• If your broker allows early closure, use it to lock in profit or cut losses when an opposite signal appears
  

  
  

Video on this strategy:

Pathfinder and Automated Binary Trading

There are versions of binary option bots that implement the Pathfinder strategy. However, as with most scalping systems, manual trading gives you more flexibility and better adaptation to market conditions. Thanks to its multi-currency applicability and high signal accuracy, the Pathfinder binary strategy can deliver stable profits every day.