Before you start trading it is important that you are aware of the differences between binary options vs Forex, so that you are able to choose the trading method that suits your individual style and
preference.
However, even with the conservative strategy, a trader can produce excellent results if they trade 5-6 assets, and take 2 high probability trades per asset per day. The 3 strategies explained here work for all currency pairs, commodities, stocks and indices.
Above the retracement area is the white box marked by 3,
binary options and the green candle underneath touches that box. The setup is ready when the retracement candle is followed by a red candle in the direction of the trend. So this is our first breakout candle of this specific sequence. We enter PUT 10 seconds before the close of this candle, as the next candle WILL BE BEARISH, with 90% probability. This is marked by 3 PUT on the chart above. This is marked by the light blue rectangle. Now we have the levels and wait for the retracement which can be a wick, or a full candle. The next candle closes below our 100 Fibonacci level but DOES NOT TOUCH LEVEL 127, which means it closed below the low of our current sequence. This trade is
represented on the chart by 1 PUT. The Fibonacci is drawn between points 1 and 2 (in light blue)and marked on value charts the last high and low, 1 and 2 respectively. We enter PUT 10 seconds before the close of this candle because it will be followed by a bearish candle, or 2-3 bearish candles which will reach level Fibonacci level 161.8. The next red candle closes below the open of the green retracement candle, BUT it doesn’t touch value chart level 6 yet, nor the regression channels inner band. The last bearish candle hits Fibonacci level 161.8 and value chart level -8 and also the outline of the red zone, so we place a CALL.
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The trade closes automatically at the expiry time. In binary options the trader has to choose when the option may expire (one hour or one week) before placing a trade. You may be able to get predetermined expiry times on different types of options from brokers.
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The semi conservative strategy involves 4-6 trades per day. The rules are the same as for the conservative strategy, only with one exception: We take the trade at Fibonacci projection level 127 as well as 161.8.
In reality there are many many more, but let’s not make it too difficult. Look at the chart below: Yup,
41+ short-term price cycles. Each of these cycles is a Fibonacci sequence with a high-low-retracement-projection-reverse.
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