60 Seconds Binary Options Reversal Strategy

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Contents

A simple 60 seconds strategy

In this article I am going to introduce you and explain you a simple 60 seconds binary options strategy that I use when I want to take 60 seconds trades. The steps of this strategy are really simple.The only indicator I use is a volume spread analysis indicator and nothing more for indicators.I use also the engulfing candlestick pattern. About these two things (VSA and engulfing) I described them in previous articles but I will give you a brief summary.

-Red: High volume in a bearish candle, the investors are selling heavily

-Green: High volume in a bullish candle, the investors are buying heavily

-Buying climax at tops means a possible down movement of the market

-Selling climax at bottoms means a possible up movement of the market

-Bullish: After a reversal the new bullish candle engulf the previous bearish candle

-Bearish: After a reversal the new bearish candle engulfs the previous bullish candle

Now look at the screen shots.In this binary options chart there are three ITM setups in the rectangles.The setups are after a reversal in a resistance or a support. In the reversal we have engulfing patterns and in the volume the new bearish candle has more volume than the previous bullish candle. If these two things will happen (englufing, more volume in the revrsal candle) it’s very possible the next candle to close below the reversal bar. We are working in 1min chart and the expiry of the trades is 1 minute (60 seconds).

We have the same situation in this chart. Engulfing patterns near a support or a resistance and the reversal bearish candle has more volume than the previous bullish candle.

Some things to avoid:

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-If in the reversal we will have an engulfing pattern with buying or selling climax (green or red bar in the volume) it’s better to not take this trade.

– If we will have strong volume and buiyng or selling climax in the resistance or the support it’s better to not take a 60 seconds trade because tha market maybe will move unpredictable

– I prefer reversals without buying and selling climax

– Don’t overtrade and don’t martingale

60 seconds trades in Binary Options are sure risky because it’s very difficult to predict the price for one minute. It’s not for newbies.

This setup above can give you solid trades if you follow the rules because it’s about human psycology with the volume and the price action but it’s still risky.

Reversal Trading 60 seconds Binary Options Indicator – Trading Pattern

How To Setup Reversal Strategy Based on Candlestics

Expiration Time

Please setup expiration time on 1 minut. If you dont have IQ Option account you can register HERE

“General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.”

Candlestics

Please setup chart on candlesticks!

Candlestics Period

Setup candlestics chart on 5 or 10 seconds, depend how will be better for you!

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“Binary Options are availiable only for Non-EU Traders”

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Binary Options Reversal trading

Binary options are not promoted or sold to retail EEA traders. If you are not a professional client, please leave this page.

“Binary Options are availiable only for Non-EU Traders”

Trading requires a good strategy, there are hundreds of them with different market actions, indicators, charts, and price guidelines, but trading against the trend or waiting for the signs that a trend reversal is going to start is one of the most profitable trading strategies.

What is Binary Options Reversal Trading?

This is a strategy, in which the trader enters the market when a price trend is going to experiment a reversal. The current asset price movement is going to change its direction and take the opposite one. This means to trade against the trend. These reverse points are considered one of the best entry points for traders to maximize revenue. It is based on the economic premise that over time, the market regulates itself and price will return to its normal or average condition. This autoregulation feature can be anticipated thanks to well-identified patterns each time a price reach its peak.

Understanding Binary Options Reversal Trading

Reversal is the change in the asset price movement direction after a price trend. It can be positive or negative. (Increasing or decreasing its price).

Trend is the direction in which a price has been consistently moving. It can be increasing or decreasing

a) Uptrend is a continued price increasing or upward tendency. A tendency to higher highs and higher lows

b) Downtrend is a continued price decrease or downward tendency with lower highs and lower lows

Peak is the maximum or minimum price and asset can reach before the market autoregulates and it experiments a pullback

Pullback is a falling back of an asset price from its peak. This can be considered a reversal, however, some other indicator is needed to confirm it.

Investment strategy the investment plan any trader follows.

Reversal Buying or selling sign

a)Reversal trading sign for selling is when an upward trend changes its direction. This means that once the increasing price reaches its peak, this will fall. A trader needs to be aware of this and sell either before it reaches its peaks or just after it to maximize his profits. For binary options, this is the best time to buy a call.

b)Reversal trading sign for buying is when a downtrend changes its direction. This means that once the decreasing price reaches its lowest peak, this will rise. A trader needs to pay close attention to this sign and be ready to buy the asset as soon as he confirms this and increases his net revenue. This is the best time to buy a put.

Reversal indicators are analytical tools, which signal the point at which a trend will experiment a reversal.

Binary Options Reversal Trading can be very challenging. However, several patterns can be used to identify properly the reversal signs and take advantage of them for bigger profits and increases trader net revenue. Knowing when to buy a call or a put will depend on these reversal signs.

Best Binary Options Reversal Trading Strategies:

Candlestick charts and candlestick pattern for reversal

Using the candlestick over a price chart is easy to identify the reversal patterns. There are a bullish reversal and a bearish reversal. If you do not know the basic for candlestick chart please read the dedicated article for it in this web page. Click HERE to see candlestics formation article.

The bullish reversal patterns are clear indications to buy a PUT because asset price will increase:

1. Bullish abandoned baby

4. Invented Hammer

5. Bullish engulfed

6. Bullish Harami

The bearish reversal patterns are clear indications to buy a CALL because asset price will decrease.

2. Shooting star

3. Dark cloud cover

4. Bearish Harami

5. Bearish engulfed

6. Bearish abandoned baby

Learning to recognize the most common candlestick pattern is useful. Particular attention should be pay to the open or closed candlestick to avoid confused signals and do the correct market action.

Fractals Indicator

Fractals are excellent indicators to find a recurring pattern, which anticipate the price movement before a trend reversal. Fractals used a candlestick chart to identify the reversal signs or reversal patterns if you want to learn more about fractals you can read our article about it HERE

Bearish turning point pattern a sign for buying a CALL

This pattern is identified, when there is a formation with a highest in the middle and the two lowest high on each side of it on a candlestick chart and its meaning is that price will fall.

Bullish turning point pattern a sign for buying a PUT

This pattern is identified, when there is a formation with when there is a formation with the lower low in the middle and two highest low on each side of it on a candlestick chart and its meaning is that price will rise.

Parabolic Stop and Reverse (Parabolic SAR)

Parabolic SAR is a momentum indicator for price direction. It identifies the time when this momentum has the highest probability to experiment a trend reverse or switch its moving direction. if you want to learn more about Parabolic SAR you can read our article about it HERE

Sign to buy a PUT

Each time the dotted line drawn by the parabolic SAR is below the candlestick bar, the prices are going to reverse and increase

Sign to buy a CALL

Each time the dotted line drawn by the parabolic SAR is above the candlestick bar, the prices are going to reverse and decrease.

Reversal Trading 60 seconds Binary Options Indicator based only on candlestics formation

To trade with this strategy you must have IQ Option account. If you still dont have IQ Option account, you can click HERE to register.

Our strategy bassis on only candlestics formation, so basicly we dont need any aditional indicator. Please setup candlestics formations on 5 seconds (can be 10 seconds too, depend how its better for you).

The best money management for reversal trading is investing in one trade as much as right predictions you have. For example is you are sure in 99 % the price will change than you can invest 30 % of your balance. But If you are not sure and candlestics was formed as bearish or bullish than you can invest 1 or 3%.

With this money management you investing much on options that you are shure you will win. And not investing much on options that you are not 100% procent shore if price will reversal. Dont use Martingale for this strategy!

Open PUT

When candlestics are formed in one of bullish formations we invest in PUT. Example:

Open CALL

When candlestics are formed in one of Bearish formations that means we should invest CALL.

Please read an article about candlestics formations HERE

“Your capital may be at risk. This material is not investment advice.”

Binary Options Trading Strategy – Best 60-Seconds Strategies

Today we are going to share our binary options trading strategy with you. This strategy is designed to help you identify whether you’ll like trading binaries and teach you how to trade binary options the right way. If you prefer to play it safe over gambling, you’ll need a strategy or tactic to help you master binary options and other trading activities. This is where our TSG team comes to the rescue. We will provide you with the best binary options strategy.

The main reason we’re interested in learning about trade binary options is the fact that binaries simplify what we’re already doing in Forex. At the same time, binary options also allow us to make more money in the process. We are also controlling the risk.

Binary options are easy to understand. This is coming from someone who has little or no experience in the area. If your favorite approach to trading forex is to jump in on a fast price movement and ride the intraday trend for as long as the momentum lasts, you can learn how to make money trading binary options very quickly.

When we first discovered binaries, the light bulb in our heads turned on. We figured out the same thing that we’ve been doing in Forex can be done. But walk away with 75%, even 95% winning trades because we only needed to get the direction right. No need to worry about how many pips we could grasp in the process.

And that, my friends, is the real beauty of binary options.

What are Binary Options?

Binary options are a form of derivatives that have a fixed profit or loss. Trading binary options is simple. All you need to do is ask yourself a simple yes or no question. Will the price of the underlying asset be worth more than the strike price at the expiration date?

Now, let’s start by understanding how binary options work.

Essentially, we can trade binary options for any type of instrument. Whether it be commodities (Gold, Oil or Silver), Forex exchange currencies (EUR/USD, GBP/USD or USD/JPY), or stocks (Amazon, Tesla or Twitter).

So, the first thing you need to decide upon is to select the asset to trade.

Second, before submitting our trades, each of these instruments has a current value at any given point in time. How to trade binary options depends on our trading skills. It is used to predict where the current value will be some time in the future. In other words, we must use our skills to predict the market direction. This will determine our success in trading binary options.

The market can only go up or down. If we believe the current value will go up in the near future, then we buy a Call option. On the other hand, if we believe the current value will go down in the near future, we buy a Put option. Read more about call options vs put options.

Third, we need to determine what the most critical aspect of trading binary options is. The expiration time will ultimately determine if you’re making a profit or not.

Trading binary options require you to correctly forecast two things:

  1. Whether the market will rise or fall.
  2. Your forecast needs to be accurate during a certain time frame – called the expiration time.

If you’re right on the market direction by the time of the expiration time, you earn a profit. Being wrong means you incur a loss. The way binary options works is that if you’re right on the market direction, you’ll get a percentage of what you initially invested in.

Typically between 75% and 95% and in some cases, even 100% of your initial investment, depending on your Binary Options Broker.

Supposing we’re wrong on the trade, then we’re going to lose the whole amount invested in the short term.

We have made a nice infographic that highlights the four steps on how to master binary options trading.

Now we’re going to focus on step two, which is how to predict the price movement. If you manage to figure this out, then knowing how to make money trading binary options will be a piece of cake for you.

Now, before we’ll outline a method on how to make money trading binary options, we always recommend taking a piece of paper and a pen and take notes on the rules of the best binary options strategy.

In this demonstration, we’re going to look at the buying Calls.

The Best Binary Options Strategy

Our team at Trading Strategy Guides is ready to share with our beloved trading community our 60-second binary options strategy. We don’t just hope this strategy will make you money, we’re certain it will. The mathematical model behind this binary options trading strategy has a proven market edge.

The only tool you need to trade binary options successfully is the RSI indicator.

Even the RSI indicator is not good enough if it doesn’t have the “right” settings. The RSI default settings need a little bit of adjustment if you want to master the 1 minute time frame. We use a 3-period RSI to trade binary options profitably.

Naturally, a lower RSI period means that the indicator will tend to be noisier than normal. But it is more responsive to the immediate price action. Along with the RSI settings adjustments, we also played around with the overbought and oversold readings. We found out that by using an 80 RSI reading for overbought and 20 RSI reading for oversold condition, we get more accurate day trading signals.

*Note: Make sure you adjust the RSI settings before you jump into the binary options trading strategy.

By changing the RSI overbought and oversold line, we have eliminated the noise. So now we’re ready to highlight our binary options step-by-step guide:

Step #1: Find an instrument that is showing a low the last 50 candlesticks. Use the 60-second chart (1 Minute TF)

The 1-minute binary options or the 60-seconds time frame is the best chart for trading binary options. In other words, the best binary options expiration time is the 60 seconds time frame.

We recommend highlighting the starting point on your charts. And the ending point of your 50-candle low that you have identified. Simply draw two vertical lines on your chart through the starting point and ending point of your 50 candle low.

When you count the 50 candle low, you should always start from the current candle. Then go from the right side of your chart to the left side of your chart. If you manage to count 50 candle low, obviously the starting candle point will be your 50 candle low.

Moving forward, it’s time to put the RSI indicator in use and spot if we have extreme oversold reading or not.

Step #2: At the moment the 50 candle low develops, we need an RSI reading of 20 or below

Since this is a reversal trading strategy we need the RSI indicator to show a bullish reversal signal. An RSI reading below 20 shows that the market is in oversold territory and it can potentially reverse.

In our example below, the 1-minute EUR/USD chart is satisfying the two conditions.

Keep in mind that in order to move to the next step, we need the 50 candle low. We also need an RSI reading below 20 to happen at the same time.

We added one more factor of confluence that needs to be satisfied. If used in conjunction with the previous two conditions, it will make you a money maker binary options trader.

Step #3: Look for a bullish divergence to develop between the RSI indicator and the price.

When trading reversals, you need to be as precise as possible. The more confluence factors you have in your favor the more accurate the reversal signal is.

What we need to see here is for the price to continue moving lower after the 50 candle low was identified. At the same time, we need the RSI indicator to move higher in the opposite direction.

If the price moves in one direction and the momentum indicator moves in the opposite direction, it means they are diverging from each other. This signals a potential reversal signal.

Now it’s time to highlight how to find the right entry point for the binary options trading strategy.

Step #4: Buy a Call Option after the first candle that closes above the high of the 50 candle low

The first thing you need to do is to mark on your chart the high of the 50 candles low with a horizontal line. The first candlestick formation that breaks above this high is your trade entry signal to buy a 60-second Call option.

It’s that simple!

After you decide the amount to invest and pick the 60-seconds as your expiration time, it’s time to sit back and wait 1 minute before hopefully collecting your profits.

Step #5: You collect your profits if the next candle closes higher than your trigger candle

If at the expiration time, the price is higher than the price you opened your Call binary options, you’re lucky because you’re about to check-in a big payout.

For example, if you’ve invested $1,000 and your binary options broker offers you an 85% payout, it means that you accurately predicted the outcome of a trade. You get back your initial investment of $1,000 plus the 85% payout which in our case is $850 in profits.

If you want to buy Put binary options, use the same binary options guide, but in reverse.

Conclusion – Binary Options Trading Strategy

Before learning how to make money trading binary options you need a great Binary Options broker. You can’t start hitting home runs right out the gate without making sure you have a binary options broker who wants you to succeed. Secondly, you need a strategy based trading technique to reveal the market direction. You only need to forecast if the price will be up or down during the next 60 seconds, making it very convenient.

We use a heuristic approach to speculate on which way the price is going to move during the next 60 seconds. At the end of the day, traders are looking for a reliable binary options system that will help them make money from trading.

The good news is that the best binary options strategy is exactly that system. Our team is built of many traders with experience in the industry, including binary options traders who know how to make winning trades. We’re ready to help you with every step of the way.

Thank you for reading!

Also, please give this strategy a 5 star if you enjoyed it!

Don’t forget to read our guide on regular options trading for beginners here.

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Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Good Choice for Beginners!
    Free Trading Education, Free Demo Account!
    Get a Sign-Up Bonus Now!

  • Binomo
    Binomo

    2nd in our ranking!

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