Bearish Harami Patterns

Wednesday, December 17th, 2014

Wednesday, December 17th, 2014 by Tim Lanoue

As I mentioned in my previous article I am back with the Bearish Harami trading strategy. Now I am not sure if you guys have had the time to test out the Bullish Harami pattern like I have myself but I have been noticing some great results, actually a 73% success rate to be straightforward. Anyway guys, let’s take some time out of our day and learn a little bit about bearish harami patterns and how we can incorporate them when trading online with binary options.

As with any binary options strategy it is absolutely imperative that we have the proper set up before placing any investments. I have started receiving a large amount of emails since I started my own binary options channels about everything that you could imagine related to binary options. Anyway guys, 9 out of every 10 emails concerning a problem with trading strategies often are resolved after fixing a set up issue concerning a trading strategy. Many novice and experienced traders are so anxious to get started with binary options and to use a high success rate trading strategy that they look over the most simplistic step, which is the set up. They may be using the wrong time frame, trading the wrong asset, trading during the wrong hours or whatever the issue may it can always be fixed and what I am preaching to you guys reading this, make sure to set up your trading strategy correctly please, otherwise your results may not be quite like you are hoping.

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Anyway guys, back to it, when setting up this trading strategy we are setting it up just like the Bullish Harami trading strategy which I discussed in a previous trading article. Meaning that we need access to a charting solution, my favorite charting solution to use would be www.freestockcharts.com due to the large variety of assets and indicators to choose from. Next, we need a reliable asset to invest with, meaning that it needs to be a low volatility currency pair, high volume stock or popularized commodity. The following list are assets that I suggest to try when using this trading strategy: Eur/Usd, Aud/Usd, Usd/Chf, Usd/Cad, Apple, Exxon, Microsoft, Twitter, Facebook, Nike, Gold, Oil or Silver. The next step to our setup is to make sure that the time frame that we are analyzing our asset is set to a period of 15 minutes and preferably during market hours, like the New York trading session for example.

Now that we have the proper setup established we can work on trading bearish harami patterns. In the first picture below you can see an example of how we use this trading strategy, unlike the Bullish Harami trading strategy where we needed three steps in order to place an investment we only need one step to occur. This step would be for a bearish candle to reside completely within the vertical portion of the previous candle, however, this bearish candle must be within a bullish candle completely. Basically meaning that we need a bearish candle to reside completely within the limits of the previous bullish candle. In the pictures below you can see examples and how all of our investments ended up as winners. When placing an investment with this strategy it is imperative to keep your expiry times within 15 to 30 minutes, no shorter nor longer or else this trading strategy won’t work quite like the way it is suppose it.

Using Bearish Harami Patterns when using technical analysis oriented trading strategies is extremely effective and should be practice on a daily basis. The best advantage about these harami patterns is that they require the use of no indicators, meaning that it depends entirely on Price Action trading strategy, which is more than likely why these strategies have such a high success rate. If you guys have any questions, comments or suggestions please feel free to leave them below and I will get back to you soon! Thanks guys and hope you have a great and profitable trading week!

Shooting Star Strategy

Monday, December 15th, 2014

Monday, December 15th, 2014 by Tim Lanoue

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Hey everyone it is your favorite binary options blogger here back with a somewhat traditional binary options trading strategy that you may or may not have heard of before. Today we are going to cover a binary options trading strategy known as the Shooting Star, it actually feels weird to submit a strategic article for you guys that I haven’t composed on my own but in all honesty this is one of the those binary options trading strategies that should not be forgotten and should be utilized when trading binary options.

For those of you who are unfamiliar with the Shooting Star strategy it is a relatively simple trading strategy that can easily be used by traders of all experience levels, meaning novice and experienced traders would both benefit by learning and using this trading strategy. The main purpose of this trading strategy is to trade what is known as a reversal. For those of who not familiar with reversals they are exactly what they sound like they are, they are reversals that take place in the market.

The whole function of this trading strategy is to help traders predict when the price action of our targeted assets is going to conduct a reversal. Meaning that it will change directions and go the other way. This is relatively simply and straight up, one of the best advantages about this trading strategy is that it can be used by all assets. Meaning it doesn’t matter if we use a currency pair, stock, commodity or indice. However, when it comes to trading online with binary options I tend to trade only certain times and only certain assets if possible, below I will discuss my set up for using this trading strategy and how to implement it.

Before we dig deeper into the strategy portion, it is important to understand that with any binary options trading strategy you are more likely to find better success if you trade during market hours with a market hour trading strategy. The shooting star is a market hour oriented trading strategy and should not be used during intra-trading hours. When using this trading strategy or any other trading strategy you guys may have noticed that I tend to stick with only a handful of assets depending on their type. For example, I tend to only trade low volatility currency pairs, high volume stocks or highly popularized commodities. Rarely do I trade more than 6 different assets a week, it all depends on the trading strategy that I am using and the current market conditions. Moving forward, when using this trading strategy I would highly recommend using an asset from the following list: Eur/Usd, Usd/Cad, Usd/Chf, Nzd/Usd, Apple, Exxon, Facebook, Twitter, Gold, Silver, and Oil. Once you have chosen your asset then we are good to finish setting up our charting solution. The charting solution that I use is a web-based charting solution known as www.freestockcharts.com, for those of you not familiar with www.freestockcharts.com it is the best charting solution in my opinion and offers free access to all the indicators that I need.

In the picture above you can see an example of how this trading strategy would work. As you can see that the time frame that we use is Daily, meaning each Japanese Candle stick represents a time period of one day. The Shooting Star trading strategy is a strategy that is meant to take place over a period of two days, where the second day is the indicator of our reversal. As you can see in the picture we have four example of how this trading strategy would work. The first thing we need is a bullish candle by itself and then a bearish candle right next to it. The second candle is known as the origin where the shooting star takes it reversal. As you can see after the second candle we had a following bearish candle after, confirming that the trend did indeed reverse and our trades ended up in-the-money.
The Shooting Star trading strategy is a classic binary options trading strategy that should be used more often and not forgotten. Average expiry times that you should use when using this trading strategy should be 4 hours to End-Of-Day expiries, meaning the option will expiry at the last available time during market hours. As always guys if you have any questions, suggestions or comments please feel free to leave them below and I will get back to you as soon as possible!

Check out the BinaryoptionsChannel.com Extended Binary Options Indicators Explained List!

Covered Call Technique

Thursday, December 11th, 2014

Thursday, December 11th, 2014 by Sjay Bell

A great technique of reducing your risk is the utilization of the covered call technique. This procedure is particularly utilized in a circumstance when you are holding a long market position in a security. So as to lessen the risk in this circumstance, you can compose (sell) a call option on that security. The thought of this is to produce additional gains (option’s premium) from the security exchanged by selling the option down the road. An accidental advantage of this procedure is that you likewise get to minimize the degree of your misfortunes if the market abruptly tanked.

If you want to fully comprehend the idea of the Covered call technique, it is paramount to have some essential learning about what options are. Options are basically financial contracts that give the holder of the option the ability to buy or sell a specific security at a particular strike price prior to the date or time which the option will lapse. It ought to be noted that the option does not oblige the holder to practice these rights.

With a Call Option, the holder of the option gets to purchase a security at the expressed strike cost prior to its expiry. Let’s say that you unequivocally believe that the USD/JPY exchanging at 98.20 will climb higher in the short term. You can benefit from this ascent by obtaining a close term USD/JPY Call Option that permits you to purchase the USD/JPY at the current rate of 98.20. In the occasion the USD/JPY does climb higher to say 115.00, exercising the call option will permit you to benefit from the exchange rate differential, for this situation 16.8 yen (115.00 -98.20). Assuming the foreseen climb in the USD/JPY did not happen, for this situation, you can decide not to practice the call option. Your misfortune will then be recently constrained to the premium that you paid for the close term USD/JPY Call option.

In the above case, we examined about how call options work. On the opposite side of the comparison, there is likewise the seller of the option who accepts boundless risk. Consequently when you as a speculator turn into an option seller, you will really be accepting a boundless level of risk particularly in “naked call” situations. A “naked call” is characterized as an issue where a trader sells an option without owning the fundamental security for the option.

By “naked call” we are not referring to the picture below :) 

(Content was removed on Facebook so I decided to just remove it entirely..it was just a joke.)

To moderate your degree of risk, the covered call technique can be utilized. Generally, a covered call procedure requires the trader to own the underlying asset so the call option is secured or covered by genuine responsibility of the security. Hence, in the occasion the makes acts against you and the call option gets utilized, you are hedged against boundless misfortunes.

At this stage, you may be asking why try managing covered call options and not simply bargain in the underlying asset only. Well the thing is with covered call options, regardless of the fact that the options that you sold get practiced constraining you to sell the underlying security at the strike value, you will at present get to win the premium from the option sold.

For instance, how about we say you possess a few lots of USD/JPY. You chose to sell call options for the USD/JPY for a premium of 50 cents with a strike cost of 110.00 while it is even now exchanging at 98.00. So if the USD/JPY doesn’t move past 110.00, you will have earned the premium of 50 cents from the options sold. Be that as it may, if the USD/JPY moves past 110.00 (the strike value), then you will be compelled to sell the USD/JPY at 110.00 to the holder of the call options. As should be obvious in this situation, risk is moderated as you officially possessed USD/JPY and you likewise get to win extra wage (premium) from the options sold.

In spite of the fact that the covered call procedure can be very much a complex methodology, nonetheless it is a decent method to utilize when you need to:

  • Earn a premium from selling a call to accept the commitment of selling an underlying asset at a specific cost.
  • Take gains just at a level which is over the current value level.
  • Forsake the upside benefit potential in exchange for some drawback assurance.

I hope you all found this very beneficial. Feel free to comment about any questions and concerns. Be sure to check out our articles for more beneficial information. Cheers!

5 Pattern Hints for CandleStick Charts!

Sunday, December 7th, 2014

Sunday, December 7th, 2014 by Sjay Bell 

How’s it going Binary Options trader? Hope all is well, and that you’re having a very profitable week. Speaking of which, today I am going to be discussing 2 bar candlestick reversal patterns. These are common patterns that are formed that often signal reversals. To many traders, these formations aren’t noticeable. No matter the skill level, we all can benefit from any tips or “hints” the market throws at us. Without further ado, let’s get to it! Candlestick charts developed by the Japanese, and are broadly utilized as a part of an assortment of investment vehicles. Successful binary options traders should to know how to recognize reversal signals in candlestick charts. In light of effectively interpreting patterns in candlestick charts, they can make profitable call/put trades. In fact, they are a variety of candlestick patterns that signal reversal, and the most essential ones are explained in the following.

Hint #1: Spinning Tops Candlestick Patterns

These are candlesticks which have an upper shadow and lower shadow (both long), and little bodies. The body’s color is very sufficient. This pattern signifies likely uncertainty in the middle of buyers and sellers. The little body demonstrates that there has been little development from the opening to the closing mark, and the long shadows demonstrate that in the fight involving buyers and sellers, nobody has picked up a high ground.

Hint #2: Marubozu Candlestick Patterns

These are candlesticks that lack shadows. The highest point and the lowest point are correspondent to the opening or closing point. There are two kinds of Marubozu candlestick formations, specifically the White Marubozu and the Black Marubozu. The White Marubozus contains long white bodies lacking shadows. In this formation, the opening value parallels the lowest value, and the closing value parallels the most noteworthy value. This formation hints bullishness. The Black Marubozus contains long black bodies without shadows as well. Here, the opening value parallels the highest value, and the closing value parallels the lowest cost. This formation hints bearishness.

Hint #3: Engulfing Candlestick Patterns

Bullish engulfing patterns contain a huge white body that engulfs a little black genuine body in a downtrend. On the flip side, bearish engulfing patterns are seen in the chart when bearishness overwhelms bullishness i.e. a long black body engulfs a small white body in an uptrend.

Hint #4: Three white soldier’s candlesticks pattern

At the point when the long bullish candlesticks are after a downtrend, the three white soldiers candlesticks patterns is said to have been shaped. This pattern hints that an inversion has occurred. The first candle is known as the inversion candle, which either finishes up the downtrend or signifies that the consolidating period that took after the downtrend has finished. The second candle ought to be greater than the first candles body. The second candle likewise must be close to its most astounding point, with a little wick or none whatsoever. The third candle ought to be the same size as the second candle and have a little shadow or no shadow whatsoever.

Hint #5: Three Black Crow’s Candlesticks Pattern

In the three dark crow’s pattern, three bearish candles take after an uptrend, which hints that an inversion is on the cards. The second candle ought to have a greater body than the first candle. It should be near its most reduced point or be at the least point itself. The third candle should be bigger than the second candle, or be the same size. It ought to either have a little shadow or no shadow whatsoever.

To close, information of recognizing the above candlestick patterns (spinning tops, Marubozus, engulfing, three white soldiers and three white crows) is an advantage for each trader. By incorporating this information with your trading, you will notice a significant improvement in your trading. I hope you all enjoyed this and found it very beneficial. Be sure to check out our other articles for even more useful information. Cheers!

Interested to trade with FREE Live Charts – Visit Mike’s TOP 5 FREE Charting Solutions for Binary Options!

My Best Reversal Eur/Usd Binary Options Strategy

Wednesday, December 3rd, 2014

Wednesday, December 3rd, 2014 by Tim Lanoue

Hey everyone I hope you had a great Turkey Day and are ready to get back to business with trading! I am rather excited today to present you with a high success rate trading strategy that I have been working on lately and I hope you are ready increase your vast knowledge about trading binary options. For those of who you prefer or enjoy trading the Eur/Usd currency pair much like myself then you will want to keep reading because you definitely will want to add this trading strategy to your arsenal. A charting solution, three technical indicators and a kick ass attitude is all you need in order to use this trading strategy. Below I will highlight the main functions of the three technical indicators that we will be using along with discussing the set up and implementation of this binary options strategy.

TRIX Indicator

The TRIX indicator, also known as the triple exponential average indicator, is a oscillator driven indicator whose main function is to determine whether the asset we are watching are showing symptoms of being overbought or oversold. This is exceptionally helpful with our trading strategy here because the main focal point and concept behind this strategy is to trade strong reversals. The TRIX indicator acts as our guide really, if we can determine whether the targeted asset is overbought or oversold you can bet it will change directions soon down the line which is where our reversal trading strategy concept falls perfectly into play.

Simple Moving Average Indicator

Many of you already know that the simple moving average indicator is my favorite technical indicator to use when trading binary options. The main function of the simple moving average indicator is to display past average prices of our targeted asset over a predetermined period of time. For example, if we wanted to see the average price of our asset over the past 14 days we would set the period of our indicator to a period of 14.

Time Series Forecast Indicator

The Time Series Forecast (TSF) indicator, also known as the Moving Linear Regression indicator, is an extremely effective technical indicator that is used to show trends over a predetermined period of time. The TSF indicator is quite similar to the simple moving average indicator due mostly to the fact that you can change the period that the indicator displays and see how it reflects the charting solution.

Set up and Strategy Implementation

Setting up the Reversal Eur/Usd Binary Options Strategy strategy is relatively simple and only requires a few steps. The first step would be set up our charting solution, I prefer to use www.freestockcharts.com due mainly because it has all the indicators that I need and the values reflected in the solution have a better real time value than downloadable charting solutions. The next step would be to adjust our time frame to 15 minutes and select the Eur/Usd currency pair as our asset of choice. The last step would be to add our indicator to the charting solution, this can be done by clicking on Add Indicator. Once our indicators are added to the charting solution then we can begin implementing our trading strategy.

As you can see in the picture above we have a total of 5 investments placed and all but one ended up in-the-money, meaning that we had an 80% success rate. The signal line in this trading strategy would be the TRIX indicator line, not the simple moving average line like in most of my other trading strategies. In order for a signal to be generated we need to wait for a merge or cross to occur between our TRIX indicator and our simple moving average indicator. Whether the cross was conducted in an upward or downward direction will determine the type of investment trade we place. So if our TRIX indicator line crosses our simple moving average indicator in an upward direction and we have a confirmation candle directly above the break then we are good to place a CALL trade. The same can be said for a cross in a downward direction, once the cross has been established and we have a confirmation candle above the cross then we are good to place a PUT trade. Expiry times when using this trading strategy should stay between 5 – 30 minutes, no less and no longer.

This is an extremely effective binary options strategy when used correctly and on average you should have no problem seeing a success rate between 70-75%. Trading reversals is one of the most effective trading strategies in binary options and only continues to grow in popularity in the binary options community. As always guys if you have any questions, comments or suggestions please feel free to leave them below and I will get back to you as soon as possible!

Advance SMI Ergonic Oscillator Strategy

Thursday, November 20th, 2014

Wednesday, November 19th, 2014 by Tim Lanoue

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Finding the right technical indicator to use in a trading strategy can be difficult, especially when you are just starting out with trading binary options and have no little to no knowledge about the fundamentals of trading. The focus of this article today is provide all you novice traders, along with experienced traders, a highly effective 5 to 15 minute trading strategy. This strategy will require the use of two technical indicators which are extremely useful when trading reversals.

Simple Moving Average

As many of you may know by now the simple moving average is one of my favorite technical trading indicators to use when trading binary options. I take that back, it actually is my favorite technical indicator, as you may have notice I include this indicator in about every one of my trading strategies. This is simply due this technical indicators amazing ability to generate trading signals. There are three different types of moving averages: simple, exponential and front-weighted. All three of the moving averages differ from one another and provide different measurements and functions. For this binary options trading strategy we are going to use a simple moving average set at a period of 2. Meaning that we are seeing the average price of this asset during the past two trading days. Once that is done you need to change the offset of this indicator to -2 (negative two). In the picture below you can see an example of how to edit the period of this indicator and the offset of this indicator. The charting solution that I use as well is www.freestockcharts.com.

SMI Ergonic Oscillator

Oscillating type of indicators are a very effective trading indicator to use when trading with binary options. Oscillators are defined as an indicator whose sole value oscillate above and below a 0.00 level. The value of the indicator will indicate to us whether the asset is currently showing signs of being overbought or oversold. This is particularly helpful in our trading strategy because our strategy is based on trading reversals, depending on whether the value of the indicator is below or above the 0.00 level will dictate our type of investment. The indicator itself is not strong enough to use on it’s own in a trading strategy but when combined with other technical indicators it can be extremely effective. In the picture below you can see how to add this indicator to your charting solution if you were using www.freestockcharts.com as your charting solution.

The SMI Ergonic Oscillator Strategy

When using this high success rate trading strategy we want to make sure that we are trading an asset, preferably a currency pair, that displays relatively low volatility. Basically meaning that the likelihood that the asset will change directions due to minor market fluctuations is small to none. Some popular currency pairs that fit this criteria are as follows: Eur/Usd, Usd/Cad, Nzd/Usd, Usd/Chf and Aud/Usd. Once we have an asset or two selected we make sure that the time frames that we are watching our assets is set to 10 minutes. This is a 5 to 15 minute expiry trading strategy, this works great with the classic option style of trading which is offered by most brokers. Once you have done the above just make sure to add your indicators which is shown in the pictures above. In the picture below you can see this trading strategy in action.

As you can see the offset of the simple moving average indicator acts as a great way to predict future price action reversals. As like with most of my trading strategies, our simple moving average indicators acts as our signal generator. When this indicators crosses a candle of our SMI Ergonic Oscillator then we can look forward to part two of this strategy. So a cross has been established, the last step is to make sure that a confirmation candle appears above or near our cross. Sometimes a confirmation candle won’t always appear above the cross, it may confirm your reversal a candle or two later which is still alright. Any confirmation candles that don’t appear before two candles of the oscillator is a no trade. In the picture above you can see examples of our confirmation candles and where our arrows are indicates the type of trade we would place at that moment.

When our moving average line crosses our SMI Ergonic Oscillator indicator in an upward direction and we have a green confirmation candle appearing above the break within two candles lengths then we go ahead and place a CALL trade for 5 to 15 minutes. On the other hand, when our simple moving average indicator crosses our SMI Ergonic Oscillator indicator in a downward direction we have to wait for a red confirmation candle to appear above the break within our two candle lengths, once the following has been confirmed then we can place a PUT trade with an expiry time of 5 to 15 minutes.

This is a relatively new trading strategy that I have developed and I have found great success with it these past couple weeks. Out of 200 demo trades I have had 156 trades land in-the-money. Meaning I have had a success rate of exactly 78% these past two weeks. I have yet to try this binary options trading strategy with stocks but I see no reason for it not working. If you guys would trade this strategy with the currency pairs listed above along with test the following high volume stocks and let me know how you do would be greatly appreciated. Stocks to test trade: Apple, Exxon, Nike, Facebook, Twitter, Microsoft and Google. I would recommend testing these stocks on a demo account while trading from the currency pairs listed above in order to make a decent profit!

Thank you guys for reading and hope this trading strategy provides you with great success like it has done for me lately. This strategy can used by traders of all experience levels, whether you are new or a veteran trader the information provided to you in this article is all you need to know when using this trading strategy. As always guys if you have any questions, comments or suggestions please leave them below and with the results that you yield. Have a great day and happy trading!

Ease of Movement Indicator: Stock Trading Strategy

Monday, November 17th, 2014

Monday, November 17th, 2014 by Tim Lanoue

Trading stocks can be a risky business venture to take on however if you have a technically sound trading strategy then your chances of succeeding highly increase. Trading stocks with binary options can be quite rewarding but at the same time it can be difficult. Luckily for us with binary options we don’t have to worry about any pip spreads we simply have to predict whether the price of the stock will increase or decrease from it’s current level. Today we are going to cover a great stock trading strategy that requires the use of only two technical indicators.

As you may have guessed, one of the indicators that we are using would be a moving average. However, the moving average indicator that we will be using is known as a Front Weighted Moving Average. There are three different types of moving averages: simple, exponential and front weighted. These three averages have different characteristics and functions. The purpose of the Front Weighted Moving Average would be to add more weight to moving average which can be used to determine hard reversal points.

The second indicator that we will be using is the Ease of Movement indicator. The Ease of Movement indicator is a rather unique technical indicator that I do not believe I have covered in any previous article. The main function of this indicator is to show the relationship between the asset’s price action and it’s volume. Not only does this indicator show us the relationship between those two factors but it also helps us see if the asset is currently overbought or oversold. This is a great benefit for us because the whole purpose of this strategy is to trade reversals.

When using this strategy we will want to make sure that we are trading with high volume stocks, and preferably during market hours. I highly recommend using this strategy during the New York trading hours and with the stock Apple. High volume stocks that should be considered are as follows: Apple, Exxon, Nike, Amazon, Twitter, Facebook, BAC, and Comcast Corp. Now that we have chosen a reliable stock to trade we need to make sure that our time frame is set at 15 minutes. Next we add the indicators to the charting solution. Once you add both, right click on the moving average indicator, select Edit, Change the Period to 2, and Change the Average type from Simple to Front Weighted. Once you have done all that we can wait for our signals to generate. In the picture below you can see an example of this strategy in action.

The signals generated are easy to see and extremely effective, as you can see 4 out of 5 trades ended up in-the-money. When using this strategy we wait for two occurrences to happen, first would be a cross between our moving average line and our Ease of Movement line. The second occurrence would be for both of those lines to cross the dotted line, once it does then we are good to place a trade. When our moving average line crosses our Ease of Movement line in a downward direction along with both of our lines crossing our Ease of Movement 0.00 level within 2 candles lengths then we are good to place a 5 to 15 minute trade and vice versa for the opposite direction.

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Trading stocks with binary options can be difficult for traders of all experience levels. Luckily for us, this strategy is simple to use and highly effective. Make sure that you have the right set up and be patient for the signals to come. Like always, if you have any questions, comments or suggestions please feel free to leave them below!

Triangulation or Exchanging Crosses (Triangular arbitrage)

Monday, November 10th, 2014

Monday, November 10th, 2014 by Sjay Bell

You’ve likely known about arbitrage, where Forex traders can profit by exchanging the diverse trade rates of a specific currency. You presumably additionally know it can be pretty difficult for a small retail trader to accomplish.

 A comparative rule, nonetheless, is utilized by Forex traders by exchanging diverse currency pairs off of one another; these would be “crosses”. For instance, exchanging EUR/USD, and USD/JPY, the “cross” would be exchanging EUR/JPY, on the grounds that it “crosses” between the two pairs. This is a trading method that can likewise be connected to Binary Options trading as a method for minimizing risk and producing more winning trades and additionally lessening misfortune on losing trades. It’s a method that obliges a definite level of experience, and demands the trader to keep up with a few markets at the same time. Therefore, it’s likely not the most suitable for easygoing or apprentice traders.

 To better comprehend the thought here, you ought to consider Binary Options as a settled return wager. You know the amount cash you are risking, the amount you could get out, and there are just two conceivable conclusions: win or lose. On the other hand, with every currency pair, there are two variables. Every currency wins and loses esteem autonomously relying upon the monetary circumstance of every financial region. This has an impact on all the currency pairs its piece of; and due to arbitrage, those levels offset. At the end of the day, it’s uncommon at the cost of two currency pairs that have the same currency to be fundamentally out of sync.

 How about we utilize a practical illustration: the EUR/USD? On the off chance that the European Central Bank is anticipated to increase interest rates, the value of the Euro will rise significantly, and the value of the pair will go up. The impact will be the same on other Euro crosses, for example, the EUR/JPY. In any case, the European Central Bank forecast doesn’t have any impact on the Dollar or the Yen, therefore the USD/JPY pair will proceed as though nothing happened.

 Typically, in the event that you were exchanging and anticipated that the value of the Euro would increase, you’d purchase calls Euro based pairs and trust you are correct. Notwithstanding, you realize that arbitrage keeps the relative rate of trade between the Euro, the dollar, and a third currency-say, the Yen- stable. This is the place it gets entangled if the Euro neglects to go up against the dollar, that implies the dollar got stronger and additionally the Euro. Since you can’t hedge your wager against the same pair, in light of the fact that the payout on Binary Options is short of what the return; you can utilize the cross to “secure” your more risky trades against the likelihood that your trade won’t go as planned.

 To proceed with the scenario, you’re following the EUR/USD and see that it’s going to go up. At that point you triangulate off of a third currency, in the same way as the Yen: you purchase a call focused around the Euro, and an alternate call focused around the dollar. It’s essential that these three choices have the same expiry time and are purchased as near the same time as could be expected under the circumstances. The thought is that if both of the base monetary forms go up, regardless you’ll get two choices out of three to lapse in the money. This provides for you an essentially higher rate of success. Here’s how it meets expectations in this case:

 On the off chance that the Euro goes up, you’re EUR/JPY and EUR/USD calls lapse in the money. If the dollar goes up, then you’re EUR/JPY and USD/JPY calls lapse in the money. Obviously this technique is not impeccable, overall everybody would do it and we’d live in a circle of boundless cash: if the Yen goes up, then just your EUR/USD pair expires in the money, and you have two calls out of the money.

 Keep in mind that “up” regarding the matter of currencies is a relative worth. For instance in the EUR/USD pair, “up” implies that the Euro got stronger with respect to the dollar. That is the same as saying the dollar got weaker with respect to the Euro. Thus, the method applies the same path yet in opposite on the off chance that you anticipate that a currency will go “down”: you triangulate calls of a third currency pair.

 I hope you all enjoyed this and found it very beneficial. If you have any questions, please comment below and I will respond as soon as possible. Be sure to check out ours articles for more amazing information. Cheers!

Advance Binary Ichimoku Cloud Strategy

Friday, October 31st, 2014

Friday, October 31st, 2014 by Tim Lanoue & Michael Freeman

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Establishing a strong foundation before trading binary options by yourself is imperative if you wish to succeed in this highly profitable online industry. Today we are going to go over an in-depth trading strategy that I have spent many months trying to perfect and feel like I have finally done it. This strategy will require the use of an exponential moving average and the Ichimoku Cloud indicator which we will discuss in brief detail below.

Exponential Moving Average

A technically driven indicator that bares much similarity to a simple moving average indicator but more weight is added to the indicator to make it exponential. Commonly known as the exponentially weighted moving average this indicator has many duel purposes. One of the keen advantages of an exponential moving average is that is reacts to changes in market conditions quicker than most other indicators. Just like the simple moving average the exponential moving average works on a predetermined time period from a set number of days. In this strategy for instance the period that we will be using is 16, meaning that the line formed will show the average price of that asset over the last 16 days.

Ichimoku Cloud Indicator

Perhaps one of the least utilized technical indicators due to the complex sounding name the Ichimoku Cloud Indicator is one of the best indicators to use when trading binary options. However, just as the name may hint this indicator is kind of difficult to understand and does take a lot of practice to get use too. The main functions of this indicator is to determine price trends, spot support and resistance levels, and provide strong trading signals. In the picture below you can see all the intricate parts of this indicator and they come together to work as one.

Strategy Set-Up

Oftentimes the most overlooked aspect of a trading strategy would be the set-up. Sometimes the simplest mistakes in setting up can be the ultimate determining factor to whether or not your trade is successful or not. When setting up this strategy we want to use a low volatility currency pair or a high volume stock. A few popular low volatility currency pairs that we should consider trading would be the Eur/Usd, Usd/Cad, Nzd/Usd and Aud/Usd. Now some high volume stocks that we should consider trading would be Apple, Facebook, Amazon, Exxon and AMEX. Now that we have chosen a reliable asset to trade we need to make sure that the time frame upon which we watch that asset is set to a period of 15 minutes.

Implementation of the Ichimoku Cloud Strategy

Now that we have the proper set up we can work on applying this set-up into a highly profitable trading strategy. There are three main signal lines that we use; the red conversion line, the leading span a line and the exponential moving average line. The exponential moving average line is the main signaling line that we use, depending on the direction that it cross our conversion line or our leading span a line determines the type of trade we will place. In the pictures below you can see a few examples of strong trading signals and entries.

As you may have noticed, we place a call trade when our exponential moving average crosses our leading span a or merges with our leading span a line. Now in the pictures below you can see how a put trade is signaled and should be traded. When our exponential moving average line crosses our red conversion line then we go ahead a place a put trade.

All expiry times when using this strategy should be limited from 5 to 10 minutes, however 15 minutes trades still mostly end up in-the-money. I highly recommend using this trading strategy mostly with currency pairs because stocks can be a little difficult to trade sometimes if not during market hours. In addition, this strategy is best utilized during trading hours like the New York trading session, I don’t recommend this trading strategy during intra-trading hours.

This Ichimoku Cloud trading strategy is an extremely effective trading strategy that can be used by traders of all experience levels. Now practicing will definitely be a key to your success when using this trading strategy. When using this strategy successfully you can expect a success rate of 71% to 85%. During these past few months I have compiled a cumulative success rate of nearly 78% so this strategy can be extremely effective. As always guys if you have any questions or comments please feel free to leave them below and I will try to get back to you as soon as possible!

Related articles: (learn more about the Ichimoku Cloud Strategy)

http://binaryoptionschannel.com/binary-options-ichimoku-indicator/

http://binaryoptionschannel.com/binary-options-ichimoku-cloud-strategy/

VWAP Indicator and Strategy for Binary Options

Wednesday, October 22nd, 2014

Wednesday, October 22nd, 2014 by Tim Lanoue

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Having a solid trading strategy is imperative if you wish to succeed while trading binary options. Whether your strategy be fundamentally or technically based you must have a solid game plan in mind if you want to take on the financial markets and succeed. Today we are going to take a technical approach for taking on the financial markets and it involves the use of two binary options indicators.

These two indicators are known as the simple moving average indicator and the volume weighted average price indicator, moving forward we will cover the basics, set­up, and implementation of this simple yet highly effective trading strategy. As many of you may know by now I am quite the fan of moving average indicators due to their incredible ability to signal possible trading entries. For those of who you are not familiar with moving averages it is a technical indicator that has the main function of predicting price reversals. Now the unique characteristic about moving average indicators is that they can be set to reflect different price averages over a certain duration of days, this average is based entirely on your desire but for the sake of this strategy we will be setting our simple moving average indicator to a period of 4. Meaning that we will see the average price of the targeted asset over the last four days.

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The other technical indicator that we will be using in this short­term trading strategy would be the VWAP indicator, otherwise known as the Volume Weighted Price Indicator. One of the main functions of this indicator is to predict bearish and bullish market conditions. This plays in great strengths when paired with our moving average indicator because they both predict future price reversals which is what our strategy is based upon. Setting up the VWAP indicator further more we need to set the time frame to 5 minutes. Next, it basically is adding your indicators to your charting solution and editing the moving average to the desired time period of 4. When using this strategy we want to make sure that we are using reliable assets such as low volatility currency pairs and high volume stocks. Some of these reliable assets are listed as follows: Eur/Usd, Usd/Cad, Nzd/Usd, Apple, Nike and Exxon.

Now that we have a proper set up we can focus on the more complicated part of this strategy, the implementation. Looking in the picture below you can see that we have the Eur/Usd with a time frame of 5 minutes with 10 different trades placed. Moving forward, if you couldn’t tell, our VWAP indicator line is our signal generating line, once the VWAP indicator crosses with our moving average indicator then we are signaled. If our VWAP crosses our moving average line in a downward direction then we place a short­term PUT trade with an expiry time of 3 to 10 minutes and vice versa for upward crosses. Now you can wait for a confirmation candle to appear next to the cross but it is not necessary, in all the trades placed in the picture you can see that I did not wait for a confirmation candle to appear, this still resulted in 90% in­the­money success rate.

Trading with technical indicators along with a fundamentally sound trading strategy will determine your success as a trader. The strategy described above is quite simple and offers a high success rate making it ideal for traders of all experience levels to utilize. As always guys, if you have any questions or comments please feel free to leave them below!

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