Binary option strategies for beginners

binary option strategies for beginners Beginner Binary Options Winning Strategy - 80% Guaranteed Win. There are a very large number of binary options strategies available. Some of them are more complicated than others to follow. However, in this strategy tutorial we’re going to teach you one of the simplest and most efficient binary options strategies. There is actually no clear name for this strategy however its accuracy has been proven on multiple occasions in the binary options business. In order to use this strategy you will only have to use a total of 4 indicators on your chart.

The great advantage of this newbie binary options winning strategy is the fact that it always promises proven results in around 75%-90% of the time you are trading. If you use this strategy well, you may as well achieve a winning ratio of above 90% all the time. So, below you’ll find the complete description of this strategy as well as tips regarding its applicability.

Follow these guidelines you trade next time and you will be able to win the majority of contracts you purchase. UPDATE There are now tools out there that will automatically execute this strategy for you in your binary broker account. These are called signals and bots. The best one of these is Binary Options Robot. The good thing about Binary Options Robot is that it does not force you to sign up at any specific broker.

You can use your own broker. It also has an accuracy of around 70% (which it actually achieves, unlike other tools). This signal service is in operation since 2014 and has shown proven results, unlike the vast majority of similar services. These tools will basically scan the charts and use the strategy described in this article (and also other strategies) and based on those they will automatically execute trades or make predictions which you have to manually execute yourself.

You'll of course be able to adjust how much they will be allowed to trade and how frequently. I recommend using this strategy with one of the brokers in the list below, especially HighLow. I selected this list based on the availability of the indicators mentioned in this article (not all brokers have them - so you can end up not being able to use it at some brokers), reputation, easiness of withdrawal and payout rates. Beginner Binary Options Winning Strategy.

It’s a little bit awkward to talk about a particular and well-established binary options winning strategy given the fact that this strategy doesn’t really have any name at all. However, let’s call it beginner binary options winning strategy, because effectively this is what it is. This strategy works by predicting the future movement of an asset taking in consideration the data supplied by four financial trading indicators. These indicators are mentioned below. The indicators listed below are automatically generated by the charting feature offered by mist binary options brokers.

It is extremely important to only register at binary options brokers that have these indicators (like the ones we listed on the right menu) otherwise you will not be able to use this strategy. It’s also not really necessary to fully understand what these indicators precisely are in order to be able to use this strategy. If you want a full description about these indicators please check out our related article. You can find the indicators listed below 13 Exponential Moving Average (EMA) 20 Simple Moving Average (SMA) If all this seems too complicated at first, you can try out a service such as Binary Options Robot initially.

This will check the charts for you automatically for this and similar positions. You can then execute trades and learn to use this strategy yourself. 26 Exponential Moving Average (EMA) These three indicators are represented by three lines that are moving around surrounding the line on the charting platform that represents the value of the asset itself. The Bollinger Band however is represented by two lines.

The middle of these two lines is the average of the position of the above mentioned three indicators. So, basically the Bollinger Band has two boundaries, an upper boundary and a lower boundary in which the above-mentioned three indicators are positioned. Now, lets talk about the actual strategy itself. As explained, with this strategy you will be able to predict the future movement of an asset. In order to use this strategy, you will have to activate the above-mentioned indicators on your charting interface.

First you will have to watch out for the following things – The 13 Exponential Moving Average (EMA) crosses the 20 Simple Moving Average (SMA) – The 26 Exponential Moving Average (EMA) will cross the 20 Simple Moving Average (SMA) AFTER WHICH it will cross the 13 Exponential Moving Average (EMA) If the above conditions are met , then in about 95% of the cases the following will happen – The value of the asset will go outside of one of the Bollinger Band boundaries. You will be able to tell which boundary the asset will cross based on the direction of the general movement of the above-mentioned three indicators. If in average the three indicators (except the Bollinger Band) move up, then the asset will break the BB’s upper boundary. If in average the three indicators will move down, then the asset will break the BB’s lower boundary.

Like mentioned, the above outlined scenario will happen around 90%-95% of the time. Applicability of this Strategy. So, now you would want to know what exactly you would have to do in order to use this strategy to your advantage. There are actually multiple positions you could open in such cases.

Let’s take the example below. – The exchange rate of EURUSD is at 1.35 at this moment. – The upper boundary of the Bollinger Band is at 1.37. – The lower boundary of the Bollinger Band is at 1.33. Now, you notice that the 13 EMA has crossed the 20 SMA and that the 26 EMA crossed the 20 SMA and is about to cross the 13 EMA soon. You also notice that the three of these indicators are moving downwards.

In this case you will know that during the next 15-30 minutes the value of EURUSD will bounce BELOW the lower BB line, in other words, it will be below 1.33. You will have to remember that after a short while the value of the underlying asset will always return back into the two boundaries of the Bollinger Band. There are basically two choices you can make in this situation. a.) Buy a boundary option or a one-touch option and bet on the fact that the value of EURUSD will hit a low boundary of at least 1.33. Remember, using the newbie strategy you were able to predict that the asset will. 90% go below 1.33 the next 15-30 minutes.

This choice is a bit risky because you cannot know exactly when that event will happen during the next 15-30 minutes. However, purchasing a boundary option or a one-touch option can offer you extremely high payout rates of up to 500%. b.) Buy a simple highlow option and bet on the outcome that in 15-30 minutes the value of the asset (in this case the exchange rate of EURUSD) will be BELOW the current line (in this case 1.35). This choice is less risky because the value of the asset will definitely go down during this time frame. By choosing a highlow option it is not relevant if the value of the asset will reach a specific value (in this case 1.33) it only matters that its value will decrease – and as the data from the strategy told us, the value will indeed decrease. If all this seems too complicated at first, you can try out a service such as Binary Options Robot initially.

This will check the charts for you automatically for this and similar positions. You can then execute trades and learn to use this strategy yourself. So, at first read the strategy might sound a little bit complicated to total newcomers who have never traded binary options or other instruments online. However once you try it out yourself it’s actually very easy. You will only have to watch the movement of the three indicators (13 EMA, 20 SMA, 26 EMA).

You will only have to enable these indicators on your charting interface in order to use them. You will be able to tell which is which based on the color of the line representing them. You will only have to remember which color is which after which with a little practice you will be able to recognize them with ease. Here is a color reference for these indicators 26 EMA – Cyan, light blue. The colors are usually the same at all brokers.

So, after watching these indicators, and you see the pattern mentioned above (13 WMA crossing the 20 SMA, 26 EMA crossing the 20 SMA after which crossing the 13 EMA) you will be able to predict the movement of the underlying asset. If these three indicators collectively move up, then the asset will break the upper boundary of the BB (Bollinger Band). If these indicators show a downward trend movement, then the value of the asset will break the lower limit of the BB. And it’s really this simple. Use this, and you will be able to win 75%-95% of the time you trade.

NEW There are now tools out there that will do this process for you. These are called binary options signals. The tools are apps that will scan the charts at various brokers and when they discover the trends described above, they will automatically make the correct investment for you. The best tool of this kind that I found is Binary Options Robot.

Unlike most other signal apps, this one does not force you to sign up at any broker. You can use any broker you want and simultaneously use the signal app as well. In order to be able to execute all the above, you will also have to find a binary options brokers that has all the mentioned indicators and charts. One of the legit brokers we found to have all this is HighLow.

HighLow is also the only broker available that has a same-day withdrawal policy (i. e. the broker will send you your winnings within a maximum of 24 hours after you’ve requested it). Learn More About Binary Options Strategies. This is just one of the many binary options winning strategies for beginners available. We left that this was one of the simplest strategies available, so if you are new to binary options then you should begin with mastering this strategy. After you have mastered this strategy come back to our site and read about additional and more advanced strategies that will increase your winning margin even further. Remember, binary options trading is not about luck, it’s about strategy and practice.

3 Binary Options Trading Strategies For Beginners. Note! If you are new to binary options and different strategies please go to our strategy page where we cover the topic comprehensively! If you’ve studied and understood my previous posts about the fundamentals of binary option FX trading and binary options indicators, you are now ready to trade for real. Here are 3 different strategies that I use, choose one based on your risk appetite.

Good luck! Conservative Long-term Strategy. This strategy is for those who are new to this game and want to build up their capital slow and steady. The point of this strategy is to minimize risk and wait for the perfect setup on the chart.

In this case the perfect setup is using the ZigZag’s last 2 points, and draw a Fibonacci between them in the direction of the trend. Draw your fibo from point 1 to point 2 for a down trend, and vice versa for an uptrend. Your target is 161.8 projection level.

In order for the signal to be fully valid, there has to be a retracement to between 50 – 88.6. Higher the retracement goes, stronger the signal. In the example above, the retracement happens next to the number 2 in the up left corner. They key here is to be patient until all 3 factors line up. The entry rule is – Price hits Fibonacci projection level 161.8. – Price is inside or outside of the bounds of the red channel. – Value Chart hits level 8 or above. Your Expiry can be between 5 and 20 minutes.

And your target is 1-2 trades per day. And money management suggestion for this strategy is to take 2 equal bids per day for 20 days. Increase your position by 50% next day. If you lose, start with the last set of bids Day 3 21 + 21… and so on. You should reach around 5k in profits within 20 days, and next month just start over or carry on from where you left.

Top Brokers for Beginners. Semi-Conservative Strategy. The semi conservative strategy involves 4-6 trades per day. The rules are the same as for the conservative strategy, only with one exception We take the trade at Fibonacci projection level 127 as well as 161.8. Now, for level 127 trades, I would advise not to take the trade with more than 6 minutes to the expiry.

This is because usually level 127 represents a consolidation level to draw buyerssellers into the trend to get more liquidity and the price usually carries on in the direction of the trend within the next 3 candles. The rules for entry are the same as with the conservative strategy – Value Chart hits level 8. – Price is inside the red zone. – Price hits the Fibonacci 127 projection level.

Use the same money management as with conservative strategy, but your earnings will increase faster. And remember, You have to stick with the entry rules. Now, the below strategy is a very aggressive one that defines the means of sane trading. This strategy represents the use of price cycles and Fibonacci sequence in fast trading. Trades are not only taken at levels 127 and 161.8, but also at breakouts.

And Fibonacci levels are drawn for every cycle. This strategy also exploit the full potential of value charts. Above you learnt what you are hunting, where to find your prey, and how to bag some prey steady and safe.

Now, we will go after the BIG 5. Look at the chart below, how many price cycles do you see? Yes, 9 cycles. Now, change your zigzag indicator parameters to 2,1,1. How many short-term price cycles do you see now? Yup, 41+ short-term price cycles. In reality there are many many more, but let’s not make it too difficult.

Each of these cycles is a Fibonacci sequence with a high-low-retracement-projection-reverse. Look at the chart below Now it gets complicated and wonderful The Fibonacci is drawn between points 1 and 2 (in light blue)and marked on value charts the last high and low, 1 and 2 respectively. Now we have the levels and wait for the retracement which can be a wick, or a full candle.

Above the retracement area is the white box marked by 3, and the green candle underneath touches that box. The setup is ready when the retracement candle is followed by a red candle in the direction of the trend. Now wake up. The next red candle closes below the open of the green retracement candle, BUT it doesn’t touch value chart level 6 yet, nor the regression channels inner band. This is marked by the light blue rectangle.

So this is our first breakout candle of this specific sequence. We enter PUT 10 seconds before the close of this candle, as the next candle WILL BE BEARISH, with 90% probability. This is marked by 3 PUT on the chart above. The next candle closes below our 100 Fibonacci level but DOES NOT TOUCH LEVEL 127, which means it closed below the low of our current sequence.

We enter PUT 10 seconds before the close of this candle because it will be followed by a bearish candle, or 2-3 bearish candles which will reach level Fibonacci level 161.8. This trade is represented on the chart by 1 PUT. The last bearish candle hits Fibonacci level 161.8 and value chart level -8 and also the outline of the red zone, so we place a CALL. Within each price cycle between 3 points there are on average 3 ITM trade setups during normal volatility trading conditions.

And for this strategy it goes without saying that if you don’t ‘feel’ the trade or something about the setup doesn’t seem right, don’t take it and wait for the next one. This strategy will produce around 100 setups per currency pair per day, so use it wisely, and be very sure to learn it by heart before you jump in full steam. The 3 strategies explained here work for all currency pairs, commodities, stocks and indices. However, even with the conservative strategy, a trader can produce excellent results if they trade 5-6 assets, and take 2 high probability trades per asset per day. As usual leave comment below if you have any questions.

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August Special Offer Get started with only €50 at HighLow #1 Ranked regulated broker Get Started Here! In this strategy tutorial I'm going to teach you two of the simplest and most efficient binary options strategies. The first actually has no clear name, however its accuracy has been proven on multiple occasions in the binary options business. In order to use this strategy you will have to use a total of 4 indicators on your chart.

The great advantage of this newbie binary options winning strategy is the fact that it promises very high potential returns (provided you execute it correctly). If you use this strategy well, you may as well achieve a winning ratio of above 70% most the time (again, provided you accurately execute this strategy). So, below you’ll find the complete description of this strategy as well as tips regarding its applicability.

Follow these guidelines you trade next time and you may be able to win the majority of contracts you purchase. UPDATE There are now tools out there that will automatically execute this strategy for you in your binary broker account. These are called signals and bots. The best one of these is Binary Options Robot.

The good thing about Binary Options Robot is that it does not force you to sign up at any specific broker. You can use your own broker. It also has an accuracy of around 70% (which it actually achieves, unlike other tools).

This signal service is in operation since 2014 and has shown proven results, unlike the vast majority of similar services. These tools will basically scan the charts and use the strategy described in this article (and also other strategies) and based on those they will automatically execute trades or make predictions which you have to manually execute yourself. You'll of course be able to adjust how much they will be allowed to trade and how frequently. I recommend using this strategy with one of the brokers in the list below, especially BinaryMate (USA only) or HighLow (EU and international).

I selected this list based on the availability of the indicators mentioned in this article (not all brokers have them - so you can end up not being able to use it at some brokers), reputation, easiness of withdrawal and payout rates. Top 5 binary options strategies for beginners. We have checked many different strategies and some can be used for binary options and others not. You can see here five strategies that you can apply to binary options even if you are novice trader. There are also better, highly efficient strategies but they require much more knowledge and expirience from the market that is why they are not recommended for traders that are new to this.

Strategies that you will read will be easy to understand for you and will give you a good base for your future trading expirience. Click on the one you wish to read in more detail. Macd entry strategy – MACD or in long, Moving Average Convergence Divergence is an indicator we use here and is best for short term charts such as 5 minutes.

It uses two moving averages and also the MACD histogram to determine the trend by following singals. Although it is good to use it on short time charts, it also can be used for longer time frames. Trend is the friend – It is one of well known things in trading because following trend strategy will always be here.

But it takes you some time to understand how to take it and turn that into profit. You will get to know how to use trend lines and trade with them. You can also use this strategy for other more hard strategies.

Pinocchio strategy – This strategy is based on price action signal such as pin bar. This is actually known as shooting star in technical analysis based on candle sticks. The nam itself does not matter that much but you will learn how to identify support and resistance. BINARY OPTIONS HEDGING. Hedging strategy – Hedging is actually really important for tradinf of any kind.

It is something that you need to practice to protect your account by opening trading positions that are off-set. This means you will protect yourself from losses and help yourself to profits. With this information in the article you will see how to hedge in binary options even though they are simple form of trading.

1-2-3 system strategy – it is based on price action focusing on reversals. System is relying on reversal patterns that are forming at support or resistance and it has been used for decades. It is great for a novice trader since it is really simple tos tart with and later can be used with other strategies.

These are the strategies that you should atleast read if not learn. They will represent you a base for future trading. To learn more, i would recommend you to join our community and learn in the school section.

15 Responses to “Top 5 binary options strategies for beginners” I don’t normally comment on this kind of blogs.. but hey, there’s always a first time 🙂 however.. just some tools I used when I was a noob on binary trading.. Just because you people seemed real interested in this field.. Remember that you can earn easily 2 grands a day.. but make sure to stick to the recommendations this software makes.. Even if this goes against your (amateur) instincts.. 😉 Your link is no more working. Can you pls resend it to my email? Hello I am new to the topic would like to know how profitable binary options can be ? Are you new to binary? or have you been trying to know what it is all about? feel free to contact me if you are looking for guide lines i bet you you wont wanna miss this opportunity because binary trade is one thing i have come to understand, just follow my steps to be one among one of the best successful trader, and remember there is no charges apply, you can pay me respect by teaching those who have lost so much trying to be rich, after learning this awesome method, and my steps of teaching traders still remains the best, feel free to contact me on (dylanharry45@gmail. com) especially if you are new to binary , and if you have lost money in binary i can help you refund it back. REGULATION NOTICE There are many binary options companies which are not regulated all around. 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Change your life with binary options trading . FOR BEST IN ACCOUNT management, good profit returns and also teaching you some best times to trade, different trading techniques and pro trading strategies. feel free to use the email ID. JUST 2WEEKS FROM NOW YOU’LL WISH YOU STARTED TODAY. AND YOU’D BE THANKFUL YOU CONTACTED. Hello, anyone who is serious about making money from binaryforex trading or recovering losses should contact me via randyward03@gmail. com I have amazing strategies and I am willing to share all that with you and with prove of winnings. I have lost a huge sum of money but now I’m a guru. With my one on one master class system you would hardly lose a trade. I’m giving this strategy free of charge. I can assuredly guarantee you a 95% win rate. Why most of you keep losing to your broker accounts is because you don’t make use of any strategy in trading binary. No broker account would want you to make profit while they are losing. I have been trading for over two years now, and I have never been happier in my entire life. In binaryforex trading I have been able to find an amazing strategy, that has been able to lift my trades accurately giving me wins of about $8000 weekly. My one to one masterclass system, with enough proof to show you, would save you years of time and funds wasting if only you are prepared to learn. I’m giving this for free. Send me an email via melissabellomo1@gmail. com. Hey guys, I am surprise that the trade i started with $2,000 USD has grown to $38,000.11 USD. i am still making so much money using Mrs. Adelina strategy.. just 3days ago i referred someone to her and she helped the person withdraw her money from her broker… don’t waste your money or time. contact Mrs. Adelina at Adelinamorgan3310@gmaildotcom. The Geek Top Five Beginners Binary Options Strategies. I have used and reviewed dozens of trading strategies. Some are good for binary options and some are not. Discover the top five strategies for newbie binary options trading. Not all strategies are good and not all good strategies are good for all people. Some strategies, though highly effective, require such a high degree of market savvy that they are not appropriate for new comers to the game. In order to help make the school easier to use and navigate I am going back through all my reviews and picking out those best for each level of trader. This article is geared toward newbies. All the strategies here are simple to understand, easy to use and provide a great base for building a proper trading education. These strategies are not listed in any particular order because they are all valid and useful strategies for any new comer. Not too mention that together these strategies represent the foundations for most of the more advanced trading systems and strategies. The Strategies have no particular order. The Best Of MACD Entries – My Favorite. The Best Of MACD Entries – MACD, or Moving Average Convergence Divergence indicator, is one of my favorite and most used tools. This strategy is a short term trading strategy based on the MACD indicator. The strategy uses two moving averages as well as the MACD histogram to find trend following signals on short term charts. Even though this strategy was intended for 5 minute charts it is also useful for longer term time frame trades like hourly charts, daily charts and weekly charts. The Trend Is Your Friend Strategy? Yes! The Trend Is Your Friend Strategy – The trend is your friend is one of the most well known adages in trading. Still, it takes time to fully understand what it means and how to utilize the trend for profits. The Trend is Your Friend strategy is a great way for newbies to discover the value of trend lines and trend line trading. Plus, this strategy can also be used as a foundation for numerous other more complicated strategies. The Pinocchio Strategy – When Lies Become Profits. The Pinocchio Strategy – This is a great strategy because it ties into so many different aspects of trading. This strategy is based on a well known technical price action signal known as a pin bar. It is also know as a shooting star in candle stick analysis. Regardless of the name the signal is the same in all instances and a great way for newcomers to begin utilizing contrarian analysis and to help identify areas of support and resistance. Binary Options Hedging – Very Very Important. Binary Options Hedging Explained – Hedging is an important aspect of any kind of trading. It is the practice of protecting your accounts by opening off-setting positions. These off-setting positions can protect you from unexpected losses and help to lock in profits. Just because binary options are a simplified way to trade does not mean that you don’t need to protect yourself. This article is a great look into how and why you might want to hedge your binary options. The 1-2-3 Simple System – That Simple. The 1-2-3 Simple System – This system is a very simple price action strategy that focuses on reversals. The system relies on a reversal patterns forming at support or resistance levels and is one that has been used for decades. This is a great strategy for newbies because of its simplicity but also because it can be used with other tools and strategies recommended for beginners. Once you understand the basics of the strategy start using it with candle stick charts and supportresistance analysis. That’s it. Don’t forget, even the best binary options strategies suck sometimes, so check out school section, join our forum and demo trade to become an expert! Binary Options Strategies and Systems. Learn our Exclusive Step-by-Step Binary Options Strategies with an 84% Win-Rate! Welcome to our binary options strategies course. In this course, we provide simple yet very effective strategies that you can copy with a win-rate of 73-84%! This course contains step-by-step strategies that are easy for you to trade on your own account. When you are ready, you can go here to find a list of binary option brokers to put into action what you learn here! Learn successful binary options strategies with an 84% win-rate We’ll teach you how to find dozens of profitable trade setups every day Watch live trade examples with winning results Get access to our exclusive MT4 indicators Trade successfully on numerous time-frames including 5m15m1hr and EOD. About the Binary Option Strategies Course. Why Did we Create this Course? This course was created because of the growing number of people looking for profitable binary options strategies online. We’re already aware that the market is saturated with scams and phoney systems. That’s why we created this course to show you how easy it can be to trade binary options and make money off the brokers using simple step-by-step strategies. Although you’ll find a number of free strategies on other sites and forums, most of these are extremely basic in nature. For example, many sites promote simple MACD, Bollinger Band and MA moving strategies without any rules or trading requirements. These basic strategies tend to only win 50% of the time and substitute volume of signals for quality. In our strategies however, we only look for good entry conditions that guarantee a minimum win-rate of 70% of higher. The downside is that you need to be able to study the overall trend and get a better feel for the market. Who are these Binary Options Strategies Suitable for? These strategies are suitable for beginners and experiences traders alike. As long as you understand the basics of binary options trading and how to install indicators on to the MT4 platform (see our MetaTrader4 tutorials course here) then you should be fine. In the videos, we show you step-by-step how to use the strategies and when to avoid placing trades. In addition to the rules and explanations, we also provide a simple backtest to show you how you would read the markets and place trades on your own account. If you have any issues then please get in touch and we’ll be happy to answer your questions. Depending on your experience, we strongly recommend enrolling in our introductory binary options strategy course and our MT4 Tutorials course. If you’re completely new to trading then we also recommend enrolling in our free Forex beginners course. This gives a good introduction into trading currencies and understanding common Forex terminology etc. How Long will it Take Me to Generate Positive Results with these Strategies? You should be able to copy these binary options strategies and trade them on your own account straight away. All you need to do is study the videos, understand the rules and then set up the indicators on your MT4 platform. Screenshots of the Binary Options Strategies Course. What Time Frame do the Strategies work on? These strategies work across all time-frames including 5m, 15m, 1hr, 4hr, Daily and the Weekly charts. Obviously, the lower the time-frame them the less accurate the binary options system becomes. For example, we don’t particularly recommend trading on the 1m time-frame because of the greater noise in the markets. However, anything above the 5m charts is absolutely fine. The best results come from the 1hr and daily time-frames where it’s much easier to analyse the markets and avoid consolidation periods. Each strategy contains information about which market and time-frame to trade. In general we recommend sticking to the 6 major currency pairs (EURUSD, GBPUSD, USDJPY, USDCAD, AUDUSD and the USDCHF). You can also trade high liquid stocks and commodities such as gold and oil too. Just remember to trade during the main market hours and only during times of high liquidity. How Have the Win-Rate Results for these Strategies been Calculated? Each of our strategies includes information showing the win-rate and ROI per system. All results were calculated by backtesting the binary strategies across a range of time-frames and charts. The general win-rate is around 70% however this increases and decreases as you go up and down the time-frames. These win-rates also assume you know how to choose and avoid consolidated markets, major news releases and out-of-hour markets. For example, we recommend only trading during high liquidity hours (UK and NYC market hours) and avoid major news releases and consolidating markets. Please remember that most of these strategies are designed for trend trading and won’t work well in choppy market conditions. All of the courses and strategies at Investoo. com have been researched, produced and edited by professional traders and prop coaches. We also provide live video backtests for all of our strategies so that you can see that they are all winning binary options strategies that work in real time. Most of our users genuinely appreciate the time and effort we have made in teaching them how to trade, as opposed to aggressive promoting unscrupulous trading systems or auto-bots. Remember that our site and courses have already been featured on other financial sites including Equities. com, MoneyShow. com, MOOC-List. com, VantagePointTrading. com, ForexCrunch. com and more. Several of our trading coaches have also written for sites such as Investopedia. com and ForexSpace. com. You can contact us by visiting our contact page here. We’d be more than happy to listen to feedback and add additional strategies to the site. Ready to trade binary but still need help? Find out more about binary singals. binary option strategies for beginners The trend signal is one of the most known strategies that can be easily understood by beginners. With this strategy, you will be identifying candlesticks that will signify a return to a previous trend resulting from a correction. Using this strategy is ideal for contracts that have a minimum expiry period of 15 minutes and the longer the expiration, the more accurate data you will get. You can use this strategy for almost any kind of asset and this includes stocks, currencies, commodities and indices. With this strategy, you will be getting a signal to purchase a High, Call or Up option once a long upward trend has been recognized and a downward trend subsequently happens. Evidently the trend will be showing three bearish candlesticks and a long bullish candlestick. A signal to purchase Low, Put or Down on the other hand happens when the long downward trend suddenly shifts to an upward trend. This will be labeled with three bullish sticks and a long bearish candlestick. The graph below is an example of an uptrend and a subsequent correction. This shows a long corrective bullish candlestick with three preceding bearish candlesticks. With the tunnel strategy, the objective is to identify a disruption or break in the tunnel. This is only effective for options which are expiring 4 hours or longer and is applicable to almost any kind of asset and this includes stocks, currencies, commodities and indices. It is the outcome of a uniform trend resulting from ups and downs forming the two lines that form the tunnel. It is normal for the graph to stay out of the tunnel from time to time but when it reaches 30 pips then a break is identified and a signal is created. If the tunnel is going up and broken when it goes down then a Low, Put or Down purchase is recommended. On the other hand, a High, Call or Up option is suggested if the tunnel shows a downward trend and broken when it goes up. The example below shows an uptrend as the tunnel borders are formed from the highest and the lowest values of the candlesticks. This highly suggests a Low, Put or Down purchase. The main objective in using the fishing strip is to identify changes in direction that could indicate the probability of shifting trends so the trader can make the right trading decisions. Using this strategy is ideal for 15 minute contracts or higher and the longer the expiration, the more accurate data you will get. This strategy is also applicable for all types of assets which include stocks, currencies, commodities and indices. A primary signal to trade a High, Call or Up option at the start of the third candlestick will be generated if the initial candlestick closes lower than the fishing strip and the second candlestick closes inside the strip. On the other hand, the preliminary signal will recommend to trade a Low, Put or Down position at the start of the third candlestick if the initial candlestick closes higher than the fishing strip and the second candlestick closes inside the strip. In the example below, the initial candlestick closes lower than the fishing strip and the second candlestick closes inside the strip. This means a High, Call or Up option is the recommended position. The goal of using the zigzag breaker strategy is to determine cases where the previous up and down has been breached. This is also the right opportunity to make the most of out of the momentum that is created from the price breach. Also considered as a momentum strategy, the zigzag break is mostly suitable for short charts which have timeframes of around 1 hour. It is also only applicable for the GBPUSD and GBPJPY currency pairs. If the previous zigzag peak has been breached and the commodity channel index value is more than 100 then a Call or Up position is recommended. If there is a break in the last zigzag trough and the commodity channel index value is lower than -100 then the recommended position will be Put or Down. Using this strategy, the trader will enter all new zigzag breaks including entering trades that goes in contradiction of a current trade having an entry rate with a break of 1 pip from the highest rate that is touched in the zigzag. Binary Option Strategies for Beginners. The trader should always have a clear understanding that there are not always clear trends where binary options are concerned. Market prices for currencies, shares, and commodities can vary extensively, and it is not always possible to identify a clear direction in price movements. Where this happens, the trend-following strategy (which we describe later) is not suitable. In such volatile situations, the so-called volatility strategy is most effective. The basis for this strategy is earning a profit from significant movements in prices. The direction of those price movements does not matter at all, however, and precisely that indifference to the direction of movement distinguishes this from the trend-following strategy, which intentionally follows a particular kind of price evolution. The success of the volatility strategy depends entirely on recognising significant price movements. Using the example of a share price, a movement could occur when the enterprise publishes its financial results (which generally takes place on a quarterly basis), or upon the announcement of another important milestone. The advantage of this strategy is that the trader is not required to predict whether the event will lead to falling or rising prices. All that matters is the forecast that a significant price movement will occur at all. In practice, volatility strategy is deployed by the trader purchasing both call and put options on the same basis price. This strategy only works in respect of one-touch options, as the potential profit needs to exceed 100% per option. At this stage, it should be noted that both options must have exactly the same duration if, for instance, the price rises as a result of better-than-expected results, the put option (which anticipates falling prices) will incur a total loss. If, however, the call option generates a profit of 300% or even more, the loss on the put option is more than offset. By buying two options, the committed level of capital is obviously higher, and so is the corresponding risk of losses. Nevertheless, both options only incur a total loss in the event that only a small movement occurs. Accordingly, the volatility strategy can be highly effective when deployed correctly! Trend following strategy – suitable for beginners and pros alike. Trend following strategy is one of the most widely used strategies in binary option trading, and that is why it is frequently recommended to beginners in particular. Trend-following strategy is based on adapting the trader’s own behaviour to follow the general trend. Simply following the trend and behaving like other market participants is a highly promising strategy, because it is significantly more likely that a trend will continue, rather than reverse its course. The art of a successful trend-following strategy consists of recognising a trend at the moment it has started to form, at least as far as it is possible to do so. The optimal entry point is always right at the start of a trend. The challenge for beginners is that trends are significantly easier to distinguish when they are already well-established and have been in existence for some time. Charts allow upward and downward trends to be recognised very easily. An upward trend generally shows higher highs, and more moderate lows, in succession. A downward trend shows the exact opposite, with deeper lows and more moderate highs appearing successively over time. Read more about following trends. Countertrend strategy – trading against trends. Countertrend strategies are the opposite of trend strategies the trader takes a position that goes against the prevailing trend. In some situations, even upward price trends can be affected by sudden price falls in fact, this is highly likely. An overbought or overheated market, for example, can sometimes cause the trend line to change direction with little notice. Certain signals can provide an early warning of an upcoming change in the trend. Strategies that rely on countering prevailing trends suffer from a major disadvantage a lower hit rate is not offset by greater profits when gains do occur. Success with 60-second options requires the market to move decisively against the prevailing trend, but it is completely irrelevant whether the price movement is a change in the underlying trend, or simply a short-term correction. The probability that a movement will occur that goes against the prevailing trend is high when the market is quoting below a resistance level. The ideal scenario is known as a cross-resistance this term refers to a particular trend channel configuration, whereby two trend channels overlap one another. If the market breaks through its trend line, it becomes appropriate to trade against the trend. This short-term breakthrough is not technically equivalent, in chart terms, to a shift in the market. However, when the market on a particular day tends towards a shift, a price movement following that shift is highly likely. Similarly, when a market is overbought or overheated, a movement towards the lower band is likely. Hedging strategies using binary options. Alongside the strategies mentioned above, a fourth strategy is often employed when trading in binary options hedging. The fundamental point of hedging is the need to protect a mid or long-term position against losses. A hedging strategy is used to secure other trading positions, such as a forex investment. As binary options are extremely flexible, they are highly suited to protecting other positions. This flexibility extends to the duration of the options, as there are binary options that have a validity of just a few minutes, and others that remain valid for an entire year. Our example involves currency trading, buying dollars for euros. We trade on the basis that the dollar will gain value in comparison to the euro but of course, the opposite could happen. In order to protect the position from losses, a binary put option is purchased based on the dollar’s value. If the dollar actually loses value against the euro, the dollars purchased in the forex trade will suffer a loss. This can be offset through the use of a corresponding binary option if the dollar falls in value, the option will show a profit. Hedging can be used in a variety of different forms, and a distinction is made between conservative and aggressive hedging strategies. Conservative hedging primarily involves the use of binary call or put options in order to hedge against potential losses. This also allows for the preservation of previously earned, but as yet unrealised profits. Aggressive hedging, on the other hand, involves the use by traders of risky one-touch options, not to protect positions but with a view to earning large profits. 60 second options – targeting sudden price movements. Markets rise and fall continuously. Sixty-second options allow traders to take a position on whether the market will rise or fall over the next sixty seconds. Their short duration is part of what makes them so popular. Just a minute after purchasing the option, the trader knows whether he has won or lost on the trade. The size of the profit depends on the option and the market rate. Regular returns of up to 85 per cent can be recorded for successful options. In our example, the trader takes a position that the market will rise during the next minute and places 1,000 euro on a call option. The market actually rises several points upwards, causing 1,850 euro to be paid back. Sixty-second trades only make sense if there is sufficient movement in the market. Otherwise trading resembles a lottery, as when the market is moving sideways it’s almost impossible to predict whether or not the market level will be higher or lower than at the start after a minute. If that is the case, another strategy is preferable. When using 60-second trades, it should be noted that losses are more likely than profits, and this difference is what funds the brokers. This means that a hit rate of 50 per cent is not enough making profits on every other trade will still lead to losses overall. A rule of thumb suggests that, out of every ten sixty-second option positions, at least six must be successful to make a profit. This means that trades should only be made when there are better than average chances of predicting the outcome successfully, or where there are higher than average returns to be made. As some brokers offer the ability to hedge losses through repayments, a lower success rate could lead to profits. No matter what, a range of different assets should be monitored, striking only when the market developments are sufficiently promising. Good prospects exist where trends are well-established, with longstanding, upward movements, as the probability is high that the trend will sustain for another minute. Of course, there is no guarantee even here, because the trend can always reverse.