One of the main reasons we choose the EUR/USD as the underlying asset of choice to trade this system is because it is the currency pair that is traded the most in the Forex market. You can as well trade other paired currency. The strategy I'm about to reveal to you can also be used to trade "Random Index" on the weekends even week days.
This ensures that as a binary option instrument, it is available for trading all day long and will have good liquidity, enabling you to get the good pricing. You will not have to buy costly bets that will have a greater risk than reward.
If you are a trader starting out in the binary options market, this is a great way to start your trading. This system can be used to trade the:
3. Touch/No Touch
To get started, sign up for an option account with Binary:
SETTING UP THE SYSTEM:
Most binary options brokers do not provide charts for use in trading analysis, so you have to get the charts yourself. Since the underlying instrument is a Forex instrument, you can easily get a chart by downloading an MT4 Forex trading platform from any of the popular Forex brokers
The strategy in question is to be implemented on a 30 minutes chart, and the strategy will make use of the following indicators:
1.MACD (12,26,9): This is a momentum indicator that shows the strength of the signal.
2. Parabolic SAR (default settings of 0.02, 0.2): This is a trend signal
Here are the trade rules for this strategy:
In order for the EUR/USD or any other paired currency to go bullish, we wait for the parabolic SAR indicator to indicate a buy signal, which occurs when the stars for the parabolic SAR indicator appear below the price action on the chart. We also wait for the MACD lines to cross from negative to positive.
In order for the EUR/USD or any other paired currency to go bearish, we wait for the parabolic SAR indicator to indicate a sell signal. which occurs when the stars of the parabolic SAR indicator appear above the price action on the chart. We also wait for the MACD lines to cross from positive to negative.
Once you have got a confirmation of the signals, the next step is to choose the binary option trade of your choice. for this example, you can either go for the "Rise/Fall", "High/Low" but in this case, I will recommend choosing the Touch/No Touch.
This is easy to predict than a Rise/Fall or a range option as all you need is a touch, or No touch to make money on this trade.
If you are bullish on the EUR/USD or any other paired currency, you can decide to purchase a "Touch option" contract, selecting a strike price to the upside. make sure you identify the resistance points and keep your strike price below the resistance so you can be sure the price action will actually touch the price barrier you have set.
You can then purchase a "No Touch" option contract, selecting a price barrier to the downside. In this instance, you can set your price barrier well below the nearest resistance so the price action has no chance whatsoever of touching your price barrier.
Repeat the same trade sequence in reverser fashion if your signal indicate a bearish outcome. Whichever trade you decide to take, you should at least have 4 different trade options to benefit from.
Sign Up for an Option account