Trading strategy for binary options #1 trading resistance and support levels
Sellers will find that the deal is of no use, thus forcing buyers to outdo sellers and this scenario will prevent the price from falling below the Support. Situations may arise where the price may go below Support and sellers can overcome buyers. This kind of behavior will reveal that inclination towards selling is more than buying. The rationale behind Resistance theory is that as the price comes closer to Resistance level it tends to be higher and higher making sellers more likely to sell their products.
However, as the prices rise so much buyers will be less inclined to buy and hence another situation where sellers will outdo the buyers will be created.
Here, the price will be prohibited from going upwards. Just like Support, Resistance may also not hold its ground in all situations. The buyers can win over the sellers and when the Resistance is broken, the buyers will be more than willing to buy at higher prices and the prices will not come down easily.
In a nutshell, the traders who precisely understand the rules of Support and Resistance levels perform better in the market as they have more confidence and understanding power to manage their portfolios for easy gains. Your email address will not be published. How to use our strategies from Best-Binary-Options-Strategy. Support and Resistance Strategy.
Leave a Reply Cancel reply Your email address will not be published. Types of Binary Options Strategies. Therefore, introducing some second trades into my blog can serve to lend some advice on how I would approach these. Also, it is more difficult to be as accurate with these trades as the minute trades, due to the inherent level of noise on the 1-minute chart, in my opinion.
Find support and resistance levels in the market where short-term bounces can be had. Pivots points and Fibonacci retracement levels can be particularly useful, just as they are on other timeframes while trading longer-term instruments.
Take trade set-ups on the first touch of the level. For those who are not familiar with the way I normally trade the minute expiries from the 5-minute chart, I normally look for an initial reject of a price level I already have marked off ahead of time. If it does reject the level, this helps to further validate the robustness of the price level and I will look to get in on the subsequent touch.
Expectedly, this leads to a lower volume of trades taken in exchange for higher accuracy set-ups. To provide a baseball analogy, a hitter who normally maintains a batting average of. On the other hand, in that same span, he might hit. Continue to consider price action e. But without further ado, I will show you all of my second trades from Monday and I how I put all of the above into practice. To avoid confusion, I will briefly describe each trade according to the number assigned to it in the below screenshots.
On the first re-touch of 1. Similar to the first trade I took a put option on the re-touch of 1. This trade also won. A third put options at 1. This trade lost, as price went above my level and formed a new daily high. Price formed a newer low at 1.
I took a call option on the re-touch of 1. Basically the same trade as the previous one. Price was holding pretty well at 1.
On a normal move, I would take a put option there, but momentum was strong on the 2: Several put options almost set up on the 1.
So my next trade was yet another call option down near where I had taken call options during my previous two trades.
I felt this was a safer move as just half-a-pip can be crucial in determining whether a second trade is won or lost. Call option down at 1. However, the minute after this trade expired in-the-money, the market broke below 1.
This trade was a put option at 1. Nevertheless, this trade did not win as price continued to climb back into its previous trading range.