Friday, 18 April 2014

60 Seconds Trade Using the "Breakout Strategy"

If a currency pair has been trading for some time within a tight range, then when it does breakout it usually progresses in its new direction for some time.

Trader Level: Beginner
Risk Level: Low
 To get started, kindly sign up for a trading platform using the recommended broker below:

In the Breakout Strategy you are looking for a currency pair that has been trading within a tight trading range for an extensive time period.

A trading range is clearly delineated by a ceiling and a floor, the ceiling being the highest price that the asset trades within the trading range and the floor being the lowest price. When the price bounces against its ceiling or floor a number of times at some point it finally breaks

Below is a graphical illustration of a Trading Range

A clean breakout should consequently be viewed as a strong signal to initiate a 60 Second Binary Options trade. If the breakout occurs below the floor initiate a Put option; if the breakout occurs above the ceiling initiate a Call option.

Below is a graphical illustration of a clean breakout: