The strategy of binary options trading
This system is designed for trading binary options “High/Low” on timeframes of more than an hour and with an expiry time of 1 hour or more. To work with this system you will need the MetaTrader terminal with custom indicators and a template installed. The system is based on the “Dynamic channel Support-Resistance” indicator, written by Tinytjan in 2007 and published on the MetaQuotes forum. This indicator is based on the Gaussian function. Two additional indicators also play an important role in the system. The indicator “SpikeBars_v3” colors bars in blue or red depending on the direction of movement and shows the size of bars in points by numbers. This size is specified both for opening and closing, and for maximum and minimum. And for different currency pairs, depending on the volatility, the minimum bar size is set, which makes sense to trade. For the H1 timeframe: EUR/USD,AUD/USD – 25 points, GBP/USD – 27 points, USD/JPY 20 points, NZ/USD and USD/CHF – 23 points, EUR/JPY – 27 points, GBP/GPY – 30 points. The third indicator “indi#3” shows overbought and oversold levels. It is located in the bottom window of the terminal.
To trade options with an exposure of 240 minutes and one day, the corresponding charts are applied. It is important that the system requirements are appropriate for the company you are trading with, so ask how to choose a broker to trade binary options.
Example of trading on the system. The mandatory condition for buying Call and Put options is that the “indi#3” indicator line should be between the red lines. To buy the Call option, wait until the red bar drops to the bottom of the dynamic channel. Buy at the opening of the next bar or wait until the price rises at least 5 points above the closing of the last bar.
To buy Put option, wait until the blue bar rises to the upper limit of the dynamic channel. Buy at the opening of the next bar or wait for the price to drop by 5 points below the closing of the last bar.
In addition to this scheme, you can use the system in other ways. For example, to buy options at the intersection of the central green line, to take into account the slope of the channel and so on. In general, this system provides opportunities for development.
Download system files