Binary Options Trading is the most beneficial trading option right now, and here, you have to speculate whether the price will go up or down. Call, or Put, these are the two options, depending on which profit and loss will be determined. Traders use various indicators to get results in trading.
Most traders use the RSI indicator, which contains lines and charts as almost all indicators follow the same theme, line, and charts. But, do you know how to fix a strong strategy to get effective results in binary options trading? Here’s the solution.
Follow the given strategy to get a good grip on online charts while trading.
What you will read in this Post
As mentioned, the RSI indicator is the most used in Binary trading; it will be easy to explain through its standards. Other indicators will have the same function as this. You have to do the right settings here. Using 3 periods, RSI will be profitable for your binary trading.
Before you jump to the strategy, it is essential to know something about RSI. Suppose you have a condition where overbought and oversold are being taken under consideration. Then, you have to forward your steps cautiously.
If you are getting a condition where overbought reading is 80 RSI and oversold reading is 20 RSI. Then move forward; you’re then, again, getting the right signals according to 3 periods RSI. Let’s see the best strategy you can try.
Finding out this portion is important as it will help you in the next steps. You can easily do this thing.
What you have to do is, spot the candlesticks lower than 50 RSI. Again go back counting 50 candles to the left side of the spotted bar. As both the end candlesticks are in your hand, it’s time for you to draw two vertical lines.
Draw the vertical lines on end candlesticks. This step will help you in counting the oversold or overbought ratio. Make sure you have spotted the end correctly by counting the candles from left to right.
As you are done with finding the 50 RSI. Now you have to search for 20 RSI. Probably you have understood already that it’s a reversal trading strategy.
If you are thinking about what’s the purpose of this step, then read here. As you are looking back to the reverse signal, you can see it is a bullish reversal step. As the area is indicating the RSI range below 20, that means it is oversold. Again, as it is a reversal case, there will be a huge chance of being overbought in the future.
Doesn’t matter in which field ( commodities, crude oil, stock exchange, currency, and others) you are trading, these two conditions will always help you.
If you want to earn some extra money and want to become a professional trader, try to satisfy the needs by conjunction with those two conditions with a factor of confluence.
If you are wondering how the confluence factors will help you to earn some extra bucks, then here it is. You know, the more accurate and precise you can be on trading, you’ll have the upper hand. It always provides precise signals.
Now it’s time for you to understand the bullish divergence method. The steps mentioned above will help you because the reversal method is applied. The candle you’ve spotted already has a lower price. So the right side of it will indicate the positive price action. So, the RSI indicator and the price action both will move forward rapidly but in opposite directions.
There is another way to identify the potential reversal signal. Check the direction of the momentum Indicator. It simply shows you the resultant effect. So price and momentum must have the opposite movement to get the best possible results.
As you have marked the previous 50 candles, it will be easy for you to spot the next one. Draw a horizontal line straight to the previous 50 candle points. The in-between area will show you the price decreasing part.
At the point of the closing line, you can see the value of the price is increasing. It’s time for you to give a call option. The call option must be regarded as Buying. As you have spotted everything, now invest how much you want to do. These steps will take hardly 60 seconds to do. That’s why it is often known as the 60 seconds call option.
As all our steps to gain profit, if we fail at this moment, everything will go in vain. So, let’s see how to do that. When it comes to gaining profit, you have to wait until the candle gets close to the candle which is your target. It will be better to explain everything with a suitable example to make every step clear.
If you want to invest $100 on any binary options trading, then you have to search for less than 50 candlesticks near what happened before. Along with it, search for the 20 candles too. Draw the horizontal line from that 50 candlesticks.
When your next 50 candlesticks are touching the horizontal line, be aware and start investing that $100. Keep track of the candlesticks ( line chart). Fix your target of profit. If it touches your targeted point, it’s time to withdraw the money. At that point, the profit percentage is 65%. Then you’ll get an additional $65 with the investment of $100.
Line charts are popular because of these simple reasons out there. Bar charts are also helpful but you don’t get this many opportunities. If you are a professional binary trader and want to invest in specific trading, always follow the line chart.
The method which is described above is known as 1-minute binary trading. Not only in RSI, but almost all indicators are giving these opportunities. If not, select precisely as accuracy is important here.
(Risk warning: Trading involves risks)