Good day, dear traders! In this post, I will tell and explain some useful and simple strategies for novices.
On the internet, you can find various strategies of binary options trading, which promise fast and reliable profit. Their creators call it “saint Graal”, but in many cases, you have to think over everything before using this strategy without knowing how it works.
Here I will not promise you golden mountains but I will try to explain to you some reliable and simple strategies, which are based on logic and reality
Support and resistance for put-call
“Support and resistance ” is the most popular strategy, especially for novice traders. To be brief based on this strategy you have to define the correct place, where you will accept call trades in the support line and open trades in the resistance line.
How to define these lines?
There are several ways. One of those is to monitor the price behavior in old lines and try to forecast price movement when price returns to these lines. This is the entire value of the technical assessment. Forecast the future by studying the price and asset behavior in the past.
The essence is that with the help of simple Fibonacci levels you can find the best trading options. The most important Fibonacci levels for me are 161,8, 127, 61,8, and 78,6. We have been watching price rebound on these levels. Besides this, these levels create various harmonic patterns.
Just have a look at this diagram. In sections 1-2 we can see market movement down. After this, we have a time frame of 2-3 with the market going up. Many times like in this schedule the price makes bounces on the levels 161,8 and 127. These are good physical levels for S&R.
How to draw Fibonacci? Drag Fibonacci drawing instrument from point 1 to 2 and wait till the price reaches these levels (point 3 on this chart)
It is a simple and reliable strategy, which will provide us with the possibility to trade on-trend. You do not have to define when the trend starts. You have to wait for trends and search for a suitable time for market entry. For this, you can use EMA.
Have a look at this diagram. In the blue square, we see a good upper trend. All you need to do is to wait when the price reaches EMA. 13 periods (green) and 26 periods (red).
The price makes down movement in the upper trend and EMA can provide you with the points where the price stops downtrend and continues the movement down. Pay attention to the call arrow on the chart. The price goes down and when it reaches red EMA (period 26), the bounce takes place and afterward, the price goes on a general upper trend.