Strategy of the cusps for binary options with deadline to 60 seconds.

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Strategy of the cusps for binary options with deadline to 60 seconds.

In the previous article we have already treated the strategy based on the indicator of the MACD with the Bollinger bands on the average. Looking carefully this strategy I noticed that another very strong signal to enter in the market takes place when occur some cusps as shown in the figure below.

The construction of this chart is exactly the same made in the above. In the upper part there is the candles chart with time-frame to 1 minute and in the lower part there are the indicators MACD with the mobile media to 9 periods and the Bollinger bands. The only thing that we have added is the highlight in the cusps (with vertex at the top) that are outside of the Bollinger bands. How you can observe the signal that it has in these cases is an excellent signal. In fact in all three cases is observed that immediately after it has had the cusp, which obviously corresponds to a bearish candle (red) there is at least another red (generally two others). This encourages us to try the investment to 60 seconds opening a position PUT precisely at closure to the first red candle that generate the cusp.

What do you think? I want to specify that is a strategy and not a certainty. But aware that in world of the trading there are not certainties to have a good strategy that often leads to useful results is not bad at all.

To exercise I invite you to control for example in a day how many times this kind of circumstances give place to an useful result.

Updating: This strategy becomes the more effective as more the closure of the second side of the cusp is on the contour of the Bollinger band or even inside.

As required here in the comments I add a video that show how is possible to operate with this strategy.

On mobile devices as Ipad the annotations present in the video can be ignored.

We recommend to watch this video with Pc, portables or MAC.

Register you to 24option hence to open your DEMO account.

Made the minimum payment to open the account.

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Ask immediately a demo account on which you can make all your tests.

Once you learn the right strategy – you begin to operate with real money.

Binary options strategies
Category Archive

Investing in binary options without using good strategies it simply means to rely on luck, with the risk of a total loss of all invested assets. In this blog you will learn some of the best strategies for binary options that allow you to close a trade in profit very often. But consider that each strategy fits in certain market conditions, and you should make sure, prior to investing, that there are all the conditions required.
There are long-term and short-term strategies. None of them guarantee a 100% success, but if you can wisely use them, they can lead you to good results.
We recommend to test these strategies with a demo account before investing real money.

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Strategy of the cusps for binary options with deadline to 60 seconds.

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MACD and Bollinger binary option trading strategy

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60 Second Binary Options

60-second binary options are for traders that want to be very active in the market and see results fast. Since these options expire in one minute you can potentially do hundreds of trades a day.

Like traditional binary options, if you believe an asset will be higher than the current price 60 seconds from now you’ll buy a call option. If believe an asset will be lower than the current price 60 seconds from now you’ll buy a put option. A correct assessment will land you a pre-determined payout, usually between 60 and 70% on the money you traded (plus you get the money you placed on your trade back). Choose wrong, and you lose amount you placed on the trade.

The 60 seconds starts the second you place the trade. So if you place a trade at 9:45:15 AM, your binary option expires at 9:46:15 AM, 60 seconds later.

Figure 1. 60 Second Binary Options

Figure 1 shows a screenshot of some 60 second binary options. The payout is 67% in this case, and the Target Price is the current price. You’d click “High” or “Low” (not shown) which is equivalent to selecting Call or Put if you think the rate will be above the Target Price in 60 seconds. The 60 seconds begins as soon as you lock in your trade. Often the broker will also provide some other short-term expiries as well. In this case, if you click the dropdown menu you can also select 60 Seconds, 120 Seconds or 300 Seconds.

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Advantages

The main advantage is that you can essentially trade as much as you want. Theoretically you could make a trade every few seconds, or basically as fast as you can click your mouse. This allows you take advantage of any short-term opportunities you may see, without needing to worry about finding an expiry time that suits your timeframe. Simply click to buy a put or call and wait 60 seconds. Trade multiple assets and you could have multiple trades on at one time, all expiring within a very short timeframe.

From a trading perspective 60 second binary options allow you capitalize on strong market moves effectively. If the EUR/USD for example is having a very strong morning, while you still need to time your entry, chances are the EUR/USD is still going to be strong 60 seconds from now. Therefore, these options let you jump into the flow of the market, and get out of the trade quickly before a major reversal occurs. That said, you’ll still need skill in order to determine when strength may be waning, warning you it is time to back off.

This allows you to seize every possible opportunity, and potentially rack up some big daily gains.

Disadvantages

While you can trade a lot in a day with 60 second binary options and potentially make a lot of money, you could also lose a lot. “Over-trading” is common among new traders who want to try to catch every market move, but these aren’t likely high probability trades to win. Good set-ups often take time to develop, and therefore by using 60 second binary options you may be distracted by mediocre or poor trade set-ups, missing the good ones.

The payouts on 60 second binary options is also generally lower than other more traditional types of binary options, in the 60% area. This means you will need to have a very high win rate when trading. If you lose 100% of the capital you trade on losers, and only make 67% (for example) on your winners, you need to win 6 out of 10 trades to breakeven (tiny profit in this case).

Final Word

60 second binary options provide a load of potential, and provide a way to seize short-term opportunities. Ideally, 60 second binary options should be used for just that–seizing high probability short-term opportunities. There is a big risk of over-trading these types of binary options since there is the possibility of instant gratification, or if you lose the potential for “revenge trading” where you try to recoup losses. This usually doesn’t end well. Lower payouts also signal that these options should be used sparingly. Over the long-run you need to win about 6 out of 10 trades to breakeven. To make a decent profit your win rate will need to be higher. That is difficult if you over-trade or trade mediocre set-ups. As with any trade, trade quality set-ups over quantity.

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    Binarium

    Best Binary Options Broker 2020!
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  • Binomo
    Binomo

    2nd in our ranking!

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