60 Seconds Simple Binary Options Strategy

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My 60 Second Binary Options Strategy

I have been toying around with 60 strategies for a long time. In general I think trading 60 seconds profitably is near impossible but that is what provides a lot of the challenge. That and the fact that trading is just plain challenging by itself. Over the past almost three years I have read a lot of strategies, reviewed a lot of indicators and examined untold numbers of systems. Most of which are completely useless for trading 60 second options simply because the reaction time between the signal and you executing the trade is just to long. I’m not saying that this is a fool proof or 100% guaranteed strategy but I can say that it is by far what I consider to be the best way to trade such short time frames. Basically it is based on volatility and market movement, duh, but specifically on one indicator that manages to capture these two phenomena quite well; Bollinger Bands ™.

Bollinger Bands And 60 Second Trading

This strategy is based on Bollinger Bands but also uses a few other indicators as well. It is not too difficult to master but does require a little experience. Basically, I use the hourly charts to set trend. You can do this in a number of ways but in general you will want to choose a market that is trending fairly strongly in this time frame. You may want to start with a daily chart, look for a good trend, then move down to the hourly chart and begin to look for the trade. I use stochastic, MACD and trend lines to make this assessment. Also, on the daily and especially the hourly chart you will want to draw support/resistance and trend lines as needed. These will help you to pinpoint your entries and also to keep you out of trades with a higher potential for loss. I will include links to other relevant articles at the bottom of this page which will help you fine tune this strategy.

  • Daily Chart – Use of this chart can help identify shorter term trends and potential areas of support/resistance. Use candlestick set up, identify trend and confirm with trend lines, MACD, Stochastic or other oscillator. Also draw in potential areas for support and resistance. Draw lines on this chart in BLUE . Trend here can be up, down or sideways.
  • Hourly Chart – Identify short term trend and mark with a RED line. Use MACD, stochastic and other oscillators to confirm. If the daily is trending up, only trade the uptrend on the hourly chart. The same if the daily chart trend is down, only trade the downtrend on the hourly chart. If the daily chart is trending sideways, at a peak or trough let the hourly chart be your guide.
  • One Minute Chart – On this chart you will only by using the Bollinger Bands. If the trend has been determined as up, only trade bullish signals and vice versa for down trends.

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Bollinger Bands creates number of signals but the one most important for this strategy is the widening/narrowing of the bands. That is because the widening of the bands signifies market movement and specifically an increase of market movement. When the bands are narrow the asset is not volatile and not moving as much as when the bands are wide. When the bands are wide and/or widening the asset is moving more than it has over the past 20 bars with an expectation of it moving more over the next few bars.

For this strategy the widening of the bars is to be considered the pre-signal. As a 60 second binary trader you only want to trade when the bands are wide and the market is moving. Watch the bands, over time they create a pattern that moves with the underlying asset. When the bands begin to widen after a period of narrow trading it is your signal to watch for signals. At that time you will take entry on any signal that confirms the underlying trend as determined on the hourly charts. This is where experience comes into play. Bollinger Bands give a lot of different signals with no regard to trend so it takes a little bit of personalized interpretation to identify the signals you want. This is why I insist on using trend to weed out at least some of the signals produced; the trend is your friend, trade with your friend.

  • When price moves up to touch a band it is usually a signal that the trend will continue on that direction.
  • When price exceeds a band it is usually a signal that prices have reached or exceeded an acceptable extreme and are most likely going to pull back.
  • Candlestick signals that occur on or at a Bollinger Band are to be considered confirmations of the band.
  • Signals that confirm support/resistance or trend at the same time as confirming one of the three Bollinger Band lines are to be considered strong.
  • The lower band can act as support in an uptrend, the upper band can act as resistance in a downtrend.
  • When the bands begin to narrow after a period of wideness it is a signal the trend is slowing and that the asset may enter a period of consolidation or even pull back/correct.

The Best Indicator For Short Term Trading In this article I talk about Bollinger Bands and why they are the best indicator for short term trading.

Volatility, Bollinger Bands And You In this article I talk about specific types of Bollinger Band signals and how binary options traders can take advantage of them. This is a perfect follow up to my 60 second strategy and will help you interpret the signals.

60 Second Binary Options Strategy

The 60 Second Binary Options Strategy aims to increase the effectiveness of trading decisions, improve the profit-to-loss ratio, as well as grow the overall account balance. This post is aimed to explain key factors to select the right trading system, show the pros and cons of this type of trading approach and show several examples of profitable trading methods.

What is a 60 Second Binary Options Strategy?

Analysing the market

Best indicators for 60 sec binary option Strategy

As long as the market conditions change much more frequently on the one-minute chart, the set of technical indicators suitable for such a fast type of trading activity has to de adjusted. It would not be reasonable to choose technical indicators, which have a too lagging mathematical formula. Trend indicators are powerful in terms of determining the long-term trend’s direction, but they might have too many false signals on the one-minute chart.

The 60 Second Binary Option strategy would work better in case if technical indicators were able to reflect fast-changing trends and momentum. For this purpose, quick oscillators could help. For instance, Relative Strength Index, Stochastic and Stochastic RSI, Williams %R are the most sensitive oscillators in terms of immediate reaction on shifts of the markets’ sentiment. Bollinger Bands and fast exponential moving averages can help binary options traders to determine resistance and support levels and ranges.

Settings for technical indicators

How to Use 60 Second Binary Options Strategy?

Using trading cycles on the 1-minute timeframe

Trading on 1-minute charts using momentum indicators

Financial assets have different periods of price fluctuations. Sometimes it happens that even though rates are gone too far from average means, charting extreme deviations, the action continues in the same direction for quite a while. In that case, traditional moving averages and envelope indicators have a bigger lag, shifting to the fast-moving price much slower than in quiet choppy trade. Thus, a different type of technical indicators is needed to make trading decisions. Momentum indicators are among the alternative choice for such conditions.

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For example, a combination of Parabolic SAR and the Average Directional Index is effective when strong trends occur.

Multidirectional trading in sideways ranges

However, when the market is in rangebound, hovering in the same range without going anywhere, traders can benefit from multidirectional trading. This method suggests the absence of any external factor able to influence a sharp rally and lower trading volume. These periods happen on the border of trading sessions. For example, when the New York trading session is almost over, while the Asian trading session has not started yet. The main condition to buy call and put options simultaneously is to determine bands of the sideways range. High and low prices on the one-hourly chart will show the most relevant resistance and support levels to buy 60 sec binary options.

If you like this strategy, you might also be interested in this Protective Put Options Strategy

Example of using Strategy

Here are several examples of profitable trading with 60 second binary options:

RSI, Stochastic RSI and EMA

Below is a screenshot of the one-minute chart of gold. The combination of technical indicators is as follows. The Exponential Moving Average with 21-minute period shows the average mean of the recent price, The Relative Strength Index with 8-bars period points to the trend direction and overbought/oversold conditions, while the Stochastic RSI oscillator is the most sensitive indicator as it has periods of 3, 3, 8, 8 candlesticks. Call and Put options were bought on appropriate trading signals.

Parabolic SAR and ADX

EUR/USD does not have a clear trend on the one-minute chart below. However, Parabolic SAR and the Average Directional Index with the 8-minute period show trading signals once they confirm each other. So for example, a put option was bought when Parabolic SAR shifted the sentiment to negative as its dots jumped above the price, while ADX mainline changed its colour to the red. And call options were bought when Parabolic SAR was below the price, while ADX mainline turned blue. It’s also worth considering the direction of the ADX line as it points to growing or declining momentum.

Стратегия Binary options strategy 60sec

Стратегия Binary options strategy 60sec – стратегия, для поиска точек входа, направленных в сторону трендового движения цены, рассчитанная на турбо опционы сроком экспирации в 1 минуту.

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