Strategy: Trading Off the Daily Chart
Before we go any further, I just want to state here that the “Trading Off the Daily Chart” strategy can be found on Forex Strategies Revealed website. But how it applies to binary options trading is discussed here.
Riding the trend has brought up some big profits and in this post let’s discuss a technique that will add more certainty to our binary trading utilizing this strategy. In the last post, I talked extensively about how to benefit from 15 minute charts and shorter time frame ones. Let’s face it: most binary option traders are high frequency traders and they like the near term.
Nonetheless, a good look at a daily chart and placing a few well placed trades here and there will be better than chasing price action all over the place. This “Trading Off the Daily Chart” strategy is meant for Forex traders, but I feel it will work better for binary option traders.
It works better for binary options because money can be made consistently in different time frames. There are always opportunities to make money in binary trading and success with the ‘ride with the trend’ strategy is proof of this. We have been able to make money in as little as a minute to as much as an hour. In Forex, this is not such an easy task to accomplish.
How it works
It is all about identifying the primary trend or the long term trend at the start. And if you have been a reading this site for some time now, you have the ability to do that. After that, it is a case of determining continuation signals and this can be done by supports/resistance and the Moving Average Convergence Divergence (MACD) indicators.
The exit time frame really varies and depends on things like the underlying security, etc, but it’s safe to use 15 minute or hourly binary trading. More extensive research and fundamental analysis can make this a good strategy for weekly and monthly binary option trades. At the end of the day, it’s all about riding the trend.
The good thing about this strategy is that it offers reliable long term signals while providing traders with points to enter into binary option trades. The signals are better indicators than a lot of strategies we’ve discussed here and so this is one of those really great strategies to make money.
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