Binary Options Strategy: 10 MINUTES TREND TRADING
It’s more than recommended to have trading strategy if all type of investors want to become successful with binary options trading. The two more important things that we have learned in PlusBinary are trade having a plan and a very good strategy. Some people are saying that they are lucky by forecasting BUT just sometimes, so it’s not a good way to follow. Moving forward, today we are talking about a nice simple but very precise trading strategy.
On first, we go to explain what are the trend trading because we know that not everybody know about. Trends are created when a series of price candlesticks remain in the same direction. Trend trading consist of the use of determining trends and trading reversals. A reversal is the signal where the asset’s price varies directions. There are only three sort of trends and it’s recommended to know them:
Uptrend: is a trend increasing.
Neutral Trend: here the price of an asset remain the same.
Downtrend: is a trend decreasing.
This strategy only require one technical indicator that would be a simple Moving Average. We already know that are very good indicators to apply with trend trading because they chart the average value of that financial product in a defined period. In the next example, we are going to set up the MA to a 3 periods. Then, we have to ensure that the time frame of our chart is set to 10 minutes because we are trading with a 10 minutes strategy and also, we have to set the expiries at 10 minutes. In the following illustration, we can observe how this strategy can work.
We should be able to put our options when the blue MA crosses and goes on the opposite direction. On the other hand, to confirm the entry, it’s important to know if there was a bullish or bearish trend before the rupture. For example, the first CALL option that was operated, there was a solid bearish trend in action before the MA moved in the opposite. As soon as we’ve got a solid trend and occur a rupture in the way of the MA line then we are able to put an option for the different way. On the illustration, we can see that we have had success with all our options. In PlusBinary, we recommend you any currency pair when trading with this trading strategy because we have not try with other kind of financials products.
Newbie and professionals Binary Options investors like trading with trend trading. This strategy is a recent one but have already demonstrated to be very strong and we can say that if used correctly as indicated, we should be able to finish ITM with a 79% effective return. Well, another strategy in mind but don’t worry, in PlusBinary we have many more things to tell you about how to become an expert and achieve your dreams.