Binary option is the better way to earn money online. Today I’m going describe Binary Option The ARITHMETIC trading strategy.
Thank you for reading my Arithmetic Trading Strategy article. As we all know the binary option is the easy way to make money and lose money. But, with only a good strategy and right money management, we can change it to 100% money making machine.
I have been in this field for 4 years. In the beginning, I had tried many strategies and indicators which resulted in the complete loss of my equity. But, then I recovered all after using my own strategy. I’m using this method for the last 3 years and still giving up to 85-100% wins every day.
Binary option The ARITHMETIC trading strategy:
Key to binary options success is predicting the direction correctly. The direction only can be determined when we have a strong reason to say whether it will move up or down next. If you analyze this, the price of a currency is reacted on support and resistance of most previous support or resistance. Once the price is on the support/resistance, we will give 10-15 minutes for the reaction to occurs which we called this as expiry time. So, this is the key idea behind my binary options strategy.
Strategy for Ranging Price / Market:
binary option trading strategy Step #1
Draw Horizontal Support and Resistance Line (S n R) on 15M chart. You need to have at least two max/min points to draw this lines. By joining point marked as 1 and 2 the horizontal lines are drawn. See the chart below.
From the chart above, we can see that the price is bouncing between the two horizontal purple lines. It means the price is in range.
binary option trading strategy Step #2
To Trade, we change the 15M chart to 1M to give more accurate rate to buy. When this line is touched for the 3rd time, we will go against the direction. For an example, if the candle touches the RESISTANCE LINE for the 3rd time, we will trade ‘DOWN’ and vice versa for the SUPPORT LINE. The expiry time for this should be 10-15 minutes so that the market has enough time to reacts on the S n R lines.
Look at the explanation chart below. Please enlarge it to view.
The reaction on the SnR and When to open a trade?
When the 1M candle touches the Support or Resistance line, it’s won’t change direction immediately.
You have to wait for an immediate retest the SnR line between 3-5 candles before it changes direction. So, you open trade on retest of SnR within 5 minutes. Do some paper trade (demo) and analyze the previous chart before you go on live. It will improve your results.
For Optimum Results
You only trade 3rd and 4th-time retest of the SnR. From my analysis, the 5th time retest is risky as most probably the S n R will be broken.
How Many Winning Trades Did You Need Per Day?
We never satisfied with our results for binary options trading. If we win, we will be greedy and trade more until unrepairable damage done to our account balance. If we in a loss, we try to trade more to recover the losses and too, unrepairable damage done to our account balance. In both cases, it’s considered as overtrading. Overtrading always ended up with losses, so please avoid this.
My another post link about binary option tarding below.