Did you know that forex
trading through Binary Options is easier to do compared to forex spots. This is
because you only need to select "Call" when predicting rising prices
and "Put" if the price will go down. As a trader, you don't need to
calculate lots and spreads before entering trading. Even so, you still need to
know price movements and have to do analysis and make a strategy so you can get
the desired profit.
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There are lots of trading binary options that can be done, ranging from those based on expiry time to applying certain indicators. In addition there are also several strategies that follow the direction of prices such as the trend and sideways trading and rely on candle patterns such as pin bars and inside bars.
The question is what kind of strategy is the best?
Answering this question depends on each trader. This is because each strategy has its own strengths and weaknesses. One of the best ways you can choose the best type of strategy is to take what is the most understood strategy.
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There are lots of trading binary options that can be done, ranging from those based on expiry time to applying certain indicators. In addition there are also several strategies that follow the direction of prices such as the trend and sideways trading and rely on candle patterns such as pin bars and inside bars.
The question is what kind of strategy is the best?
Answering this question depends on each trader. This is because each strategy has its own strengths and weaknesses. One of the best ways you can choose the best type of strategy is to take what is the most understood strategy.
For example if you are a trader who is aggressive and responsive to price changes, then you can take a short-term strategy like a 1-minute trading binary option.
There are many strategies in binary options that you can do. Here are 5 binary options strategies that you can try to do.
1. Trend Strategy
You must recognize that price trends will bring invaluable potential. In the forex market or binary options, trends are considered the most ideal conditions for entering the market. Although binary options do not take into account the large price movements in considering profits, opening a position when the price is trending is preferred.
The above can occur because the existing trends can make it easier for you to analyze price movements. If the trend continues, you can easily take a more convincing position.
Because of the above advantages, many trend strategies are chosen by binary option traders who are beginners or who already have experience. One indicator used in this strategy is MA and Trend Line.
In general, a trader who follows a trend will look for a forwarding signal, while a trader who likes to go against the flow will look for a reversal signal.
2. Pin Bar Strategy
In implementing this strategy traders will rely on pin bars,
because pin bars are one reversal signal that many traders can trust. The
appearance of pin bars is always considered important either as a main
indicator or just a confirmation.
You can use a longer pin bar axis as a guide to predict where prices will move. For example a pin bar that has a long axis located at the bottom of the candle is called a Bullish Pin Bar.
If the Pin Bar above occurs after a Bearish Candle, then the pattern can be a sign that the price will turn bullish.
You can use a longer pin bar axis as a guide to predict where prices will move. For example a pin bar that has a long axis located at the bottom of the candle is called a Bullish Pin Bar.
If the Pin Bar above occurs after a Bearish Candle, then the pattern can be a sign that the price will turn bullish.
3. Hedging Strategy
This strategy is a strategy that you should consider in trading binary options. In Binary Options, the use of hedging strategies is more flexible, because Binary Options do not prohibit traders from placing opposite options on an instrument at the same time. With this convenience, you can maximize hedging opportunities better.
The main purpose of using hedging is to anticipate losses from options. So when you have the "Call" option that will expire in 5 minutes, but the price is still moving in a bearish position, then you can open a new "Put" option to compensate for the potential loss from the first position.
Before implementing this strategy, it helps you understand well the risk of hedging first. Although it looks very effective to do, if the users of hedging are not optimal in using the strategy, it could be that the losses will increase.
This strategy is a strategy that you should consider in trading binary options. In Binary Options, the use of hedging strategies is more flexible, because Binary Options do not prohibit traders from placing opposite options on an instrument at the same time. With this convenience, you can maximize hedging opportunities better.
The main purpose of using hedging is to anticipate losses from options. So when you have the "Call" option that will expire in 5 minutes, but the price is still moving in a bearish position, then you can open a new "Put" option to compensate for the potential loss from the first position.
Before implementing this strategy, it helps you understand well the risk of hedging first. Although it looks very effective to do, if the users of hedging are not optimal in using the strategy, it could be that the losses will increase.
4. Risk Reversal Strategy
This strategy is very similar to the hedging strategy, where this strategy is a method that is run by opening 2 options "Call" and "Put" at the same time. The difference is this strategy is not to minimize risk but also to make new profits.
If you have a good understanding of how to do hedging, then you will not have trouble trying a risk reversal strategy. Not too much difference when you will implement this strategy.
The trick is, you only need to place a different amount of capital in the 2 options that are opened. The largest capital must be placed in a position that you think can be most successful.
Thus, even if one position ends at a loss, there are still positions that can bring you profits.
5. Straddle strategy
This strategy is still closely related to the placement of the "Call" and "Put" options simultaneously. In this strategy there is an emphasis on price conditions and ways of analysis that can help you to find potential levels when entering a position.
Basically, this strategy will focus on support and resistance as price barriers that define the "Call" and "Put" areas. Overbought and Oversold levels on the Oscillator indicator you can use as a potential area.
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This strategy is very similar to the hedging strategy, where this strategy is a method that is run by opening 2 options "Call" and "Put" at the same time. The difference is this strategy is not to minimize risk but also to make new profits.
If you have a good understanding of how to do hedging, then you will not have trouble trying a risk reversal strategy. Not too much difference when you will implement this strategy.
The trick is, you only need to place a different amount of capital in the 2 options that are opened. The largest capital must be placed in a position that you think can be most successful.
Thus, even if one position ends at a loss, there are still positions that can bring you profits.
5. Straddle strategy
This strategy is still closely related to the placement of the "Call" and "Put" options simultaneously. In this strategy there is an emphasis on price conditions and ways of analysis that can help you to find potential levels when entering a position.
Basically, this strategy will focus on support and resistance as price barriers that define the "Call" and "Put" areas. Overbought and Oversold levels on the Oscillator indicator you can use as a potential area.
OPEN YOUR FREE ACCOUNT HERE: www.binary.com
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