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GBP - one point and option in profit with vfxAlert

GBP - one point and option in profit with vfxAlert

Hello traders! Why signals for binary options are more profitable than "classic" trading in the currency and stock markets? The fact that even one point above or below the opening price closes the trade in profit. Let's see how it is done on the British pound.


Strategy characteristics




Type: 

Trend.

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 an increasing.

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%.


Used indicators


The strategy uses two technical indicators:


Bollinger Bands (BB) − the horizontal direction of the BB lines confirms the presence of a flat, the breakdown of the 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 main advantage of Bollinger Bands as a channel indicator is the leading signals of a change in the state of the market (accumulation, distribution, termination) and confirmation of the truth or falsity of local breakdowns of significant support/resistance levels.


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).


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.


RISE (CALL) option. The price turns up from the lower border or middle line of the Bollinger bands, the stochastic is above the zero level or oversold area.


FALL (PUT) option. Opposite conditions: reversal down from the upper border or middle line of Bollinger Bands, stochastic is below zero or overbought are


Open a trade on the next candle after binary signals. The time of expiration of options has to be not less than 5-7 minutes even if as a working timeframe it is chosen of minute, as in our video.







Recommendations about use … 


Even on the minute timeframe, Stochastic rarely goes into 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!


The «narrower» the Bollinger Bands 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;


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; 


If the broker makes it possible to close the option before on expiration, we do it (even if it in profit!) at the emergence of an opposite signal


Let`s summarize. The strategy represents a rather reliable system of a conservative scalping for trade in the stable market. Parameters of trade tools can be changed according to the current volatility. Once again, we remind you that most profitable binary options signals will only be on trend areas, during the flat periods we remain out of the market!





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