Today we will talk about a simple but very effective and reliable technique for binary options trading, with a 5-10-minute expiry and a 5-minute timeframe. Binary options at expiration are probably the most used by traders in the market because they are more flexible and easier to manage than those with a short-term expiration, such as 60 seconds, for example, and they provide greater risk predisposition and ability with the scalping technique.
For this technique we will need a few indicators (your Broker will certainly make them available to you without problems) which:
If you want to take a look at our in-depth study of the stochastic oscillator, just click here. If desired, you can also use the Band Stop and MACD indicator and rely on Fibonacci strategies.
These are the Brokers who give the possibility to compare themselves with these techniques / deadlines.
In this technique the average will be used to understand if the price is going up or down. The ADX indicator will help us to know if there is a trend and the RSI indicator will show us the right time to invest. The graph shows a visual representation of the chosen asset to invest in (currencies, commodities, equities). It is also important to master the terminology "put" and "call" in order to make the right decision in relation to the market trend:
To understand when it is time to enter the market and invest, we need to know how to interpret the indicators and market signals.
We need to enter and invest in the market when:
In the figure we have two opportunities to enter the market. In the first point marked by the arrow we will enter the bottom with a deadline of 5-10-15 minutes. The low-pitched candle is crossed by an average of 14 periods, while at the same time the ADX is rising above 25 and the RSI indicator is crossing the level of 50 from top to bottom. In the second case we will always go upwards with a deadline of 5-10-15 minutes.
The green candle is crossed by an average of 14 periods, while the adx is in trend, the Broad Bands and the rsi crosses the level of 50 from the bottom up. To enter the market the technique must comply with all 4 conditions otherwise it is better not to enter, but let's see a video that will further clarify the ideas.
This technique for binary options is very effective and safe, you just have to be patient by fulfilling the four conditions. Let's summarize: Bollinger Bands must be wide enough or stand to widen. The 14-period average must cross the candle, depending on the color of the candle we will choose the trend. The adx must be in trend above 25 The RSI indicator must cross the line 50.
Short-term trading requires a good deal of coldness, but what makes it interesting and potentially profitable are some of its features, for example, the possibility of trading on "anomalies" in the market. In fact, the trader must be able to pick up the alterations and defects of the market apparently predictable and exploitable in his favor. In the case of trading with currencies we are looking for price configurations that allow us to increase the probability of forecasting in the short term, so the more the time frame of the chart is reduced, the more movements increase - in jargon called "noise" - which are precisely those market imperfections created by traders in search of repeated price configurations. A further advantage of investing in short-term binary options is that you just need to be on the "right side" of the market price forecast even a few tenths of a pip to earn unlike that practice scalping where you capitalize on the order only if you make several dozen pips of positive yield.
It is clear that even binary options, although elementary in their logic, have a risk component, so it is always recommended to invest your capital carefully. With all due precautions, we now see a simple and effective 5-minute binary options trading technique, using the MACD as a market indicator.
The steps to follow are as follows:
When we speak of "continuation figure", in this specific case, we want to mean a figure (or candle) that confirms the direction of the trend on which we want to invest, graphically this is expressed in a series of candles side by side, of which we must identify the same color and at the intersection of the lines.
Although at first it seems very complex, in reality when you get used to the MACD indicator and the short-term maturities it is "only" a matter of planning trading regularly and applying the strategy.
So, in summary, to be able to earn with binary options with a 5-minute expiration it takes:
The analysis by the Japanese candle instrument dates back to the late seventeenth century in the East, when they were used to control the cereal market.
The Macd (Moving Average Convergence/Divergence) is an indicator designed by Gerald Appel. This is a delayed indicator, convergence divergence of moving averages, as it is constructed with moving averages; for the same reason its use is more indicated in trend phases.
Let's start immediately with a nice definition. In financial jargon, the option is an asymmetric derivative instrument which, in simple terms, translates into a contract with a non-binding clause to buy or sell the security on which the option has been subscribed. The security in question - which may be a share, a pair of currencies, a commodity or another financial product - is called an "underlying instrument" and can be subject to a call or put option (also known as a put and call option).