My Binary Option Trading Strategy
I bet some of you must be waiting for this post as you have already started a binary option account with 24bullls which it the broker I am trading with
Here in this post, I will be sharing with you a binary option strategy that I am using and has been pretty effective. In fact, trading binary option is slightly more simple than forex trading as you only need to know whether the price is going up or down in the next hour. You do not need to worry about where to place the stop loss or target profit.
What you will need in this strategy:
1) Pivot Point
3) 200 EMA
4) Major Swings
If you have reading my blog, you should know that I have been saying how the price moves due to support and resistance. In this strategy, we are actually making use of the major support and resistance to place our trade.
Most of the time, when the price hits a major support or resistance like the pivot point, it will get repelled by it first before breaking through it later. This is exactly how we are placing our binary option trade.
When you see the price hitting a monthly pivot or weekly pivot in an upward manner at the end of an hour, you will then enter a PUT option in the next hour as there is a high chance that the price will move down.
The same applies to the price hitting a major Fibonacci level, the 200 EMA or the major swings. These are areas where the price will usually get repelled. Personally I only like to enter trade for those support and resistance that is being tested by the price for the first time.
I will suggest you to start with one type of support or resistance like the pivot point and then slowly move on to the other ones. This will make trading option easier for you.
After you have familiarize yourself with all those different support and resistance levels, you will start to look for confluence of these levels. With the confluence of these levels, the chance of the price being repelled by it increase and therefore your chance of winning became higher.
I hope that you will profit from this strategy and I will definitely be sharing with you guys more about binary option in my later post. In fact, you can download a free education package to binary option from 24bulls which is the broker I am using for binary option.