Unlike other trading methods, in binary trading, a trader gets to choose the timeframe. The choice of this time frame determines the trade. So, 5-minute trading implies that the options’ expiry is set within a 5-minute time frame.
We can see its resemblance to the 60 seconds trade. However, in the 5-minute trading, the time available for predictions is more, reducing the volatilities compared to the 60-minute trades.
But, it also requires the use of smart strategies like any game. IQ Option is a broker that does not disappoint its clients in giving them the best 5 minutes strategies on IQ Option. These strategies shall help you win trades like nothing else.
So before moving further, let us view them and know how they can help you with 5-minute binary options.
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5 minutes strategies on IQ Option
An IQ Option trader can make most strategies to adapt to any time frame. Here, the word of caution is that a shorter time frame provides a less reliable signal. However, the following strategies can be effective with a small time frame, such as the 5-minute trade.
Price action strategy
It is among the simplest forms of strategy. The traders must pay attention and note the minute-to-minute changes occurring in the prices. While doing so, they must understand how the action acts upon those changes.
Unlike in the old days when traders did it by watching ticker tape, a charting package like MT4 will help you do the job more easily. Once you set the charts to 1,2, or 5 minutes, it will work effectively. While executing this strategy, you may also notice patterns that include triangles, heads, and shoulders, flags, pennants, etc.
It is a strategy that also incorporates other signal types along with action trading. In scalping, a trader executes a trade based on what she thinks the market will do in the next period. Also, that period generally implies minutes that do not extend beyond 10. Therefore, it is a perfect strategy for a 5-minute trade. The scalping strategy excludes the trend and focuses only on the market’s direction.
Japanese candlestick strategy
Japanese Candlesticks are one of the effective methods to view trading charts. They can give a variety of signals that traders can also use for scalping and other types of strategies.
We can understand candlesticks as an extended method of plotting price data on a trading chart. However, the results of this method are way more rewarding than we can anticipate. Traders can use the candlestick signals with any chart setting they wish to use. However, it is one of the few strategies that work well with 1,2, and even 5-minute trading.
Swing strategy or momentum strategy
In binary trading, we cannot emphasize enough the importance of momentum. It is an essential aspect for both technical analysis and price action. Whenever we see the price and market move, it contains momentum. It is the amount of force that drives the movement.
In other terms, momentum is the total of the money and people moving into or out. Such a movement shall be regarding an asset, and it should carry the prices in a particular direction. When that happens for an extended period, traders can use it for strategizing their trading plans. It can act as a reliable trading indicator even with a 5-minute trade.
When the market’s momentum carries the prices too far in one direction, it indicates that a swing will occur in the opposite direction to rebalance. In such a case, a trader can effectively set the trading at 1,2, or 5-minute charts, for an effective strategy.
Why should you use strategies while binary trading?
A strategy signifies the ideal approach that a trader must use to tackle a particular market condition.
We can assume trading as both an art form and a game. It is the art of getting rich, but at the same time, it works like a game also. It is tragic to see people often try out unfruitful ways of making money. They end up bearing losses instead of profits.
The main reason behind such a mishap is that many of them do not know how to utilize their opportunity. A strategy can help in that.
Regardless of your asset choice, a sound trading strategy is one of the essential requirements. It will help your trade become consistently profitable.
You can devise a systematic approach to your trades with a sound trading strategy. It is a necessary factor in the long-term success of your trading journey. Especially when you are trading in a short window method such as 5-minute trades, you must be aware of the useful strategies. They will supplement your fundamental and technical analysis and help you perform better.
What does IQ Option signify in binary trading?
Nowadays, there are many fast-growing online trading brands worldwide. IQ Option is one such trading brand. It offers services through its unique platform that is full of lucrative features.
During the last couple of years, various news agencies have also featured it. IQ Option is an award-winning binary trading broker platform with many accolades. It recently bagged the excellence award in 2017 and the best trading platform award.
The user database of IQ Option is also large and comprises more than 86000000 registered users all over the world from India to South Africa. Moreover, 1800000 investors actively trade with them, generating a monthly volume of more than $380,000,000. Therefore, IQ Option can be an ideal choice for all binary traders.
Trading has seen a significant change in the past few decades. The rise of online methods and binary options has taken over the old methods.
The popularity it has shown is remarkable and is increasing day by day. However, entering into the binary world can be tricky for a newcomer. The market is unpredictable and requires you to choose either a yes or no proposition. So, without a proper approach, you may lose all your wealth in one bet.
The 5-minute trading method has a small time frame window similar to the 1-minute trade. Therefore, the predictions during such a short time frame may pose difficulty to the new traders. However, when you have these effective strategies, you can hope to increase your chances of winning trades. You can use them with a reliable trading partner like IQ Option to reap the maximum benefits.