Posts Tagged ‘strategy for binary options’

The PVO Indicator Strategy for Binary Options

Monday, March 31st, 2014

Monday, March 31st, 2014 by Tim Lanoue 

The PVO indicator otherwise known as the Percentage Volume Oscillator is a momentum oriented type of oscillator that falls under the category of a centerline oscillator.  The main function of the PVO indicator is to gauge and measure the difference between two simple moving averages in correlation with a large exponential moving average.  This indicator is particular helpful when trading stocks in the binary options industry because it deals with an assets volume.

How it Works

The Percentage Volume Oscillator has default settings so when you apply this into your charting solution you should not have to customize it to the preferences used in this article.  Default settings for this indicator involve the simple moving averages to be set at 12 and 26 while the exponential moving average is set at a period of 9.  These periods are used to measure time in days, so the first PVO line that is represented as the blue line below gauges the volume of the stock over the past 12 and 26 days.  While the exponential moving average, seen as the red line in the picture below, acts as our signal line.


How to Properly Apply

When using this indicator it is important to make sure that we are using a stock that has high volumes.  After all this is a volume and momentum type of oscillator so we are constantly measuring and gauging the health and overall status of our targeted asset.  Some high volume stocks that I would recommend to trade with this indicator would be Apple, PLUG, MRK, DTV, and FB.  In the picture provided below you can see how we would use this indicator to trades stocks in a binary options trading strategy.  As you can see we have an example of a call trade along with a put trade.  In order to place a trade we need to wait for two things to occur, the first thing would be we need our exponential moving average line to cross our PVO average line in either a downward or upward motion.  The last thing we need to make sure of is that the direction that our red line breaks with our blue lines correlates with the current trend above that break.  So in the first example you can see that our red line crossed our blue line in an upward direction and there was an overall bullish trend present so we go ahead and place a call trade.  The opposite goes with a downward break, if a downward break occurs then we need make sure a bearish trend is present and if so then we are good to place a put trade.  In addition, those yellow stars present in the picture display where our trades would have expire, as you can see they both are winners.

Best Expiry Times

When trading with this indicator we want to make sure that we are using a time frame consisting no less than 15 minutes and no longer than 30 minutes.  When we are using a 15 minute time frame we want to make sure that we are using a time frame consisting of one hour.  However, if we are using a 30 minute time frame then we want our expiry time to be near the two hour range.  The reason why we are using longer expiry times would be because we are dealing with high volume stocks and we need to make sure that the trend will more than likely continue.  If you have any questions you can feel free to leave them below, thank you for your time!

More Indicators and Strategies

Advance Resistance Level Strategy for Binary Options

Wednesday, February 12th, 2014

Wednesday, February 12th, 2014 by Tim Lanoue 

Due to the high liquidity of binary options it is easy for one to make big profits even with the smallest of trades.  Whether you are a new or experienced trader, the potential to profit and make a comfortable living is all within your grasp with binary options.  Oftentimes I reflect back on my life and wonder where I would be if it wasn’t for binary options.  Trading binary options has changed my life and I hope that after today’s article it can help change yours.

For those of you are familiar with price action strategy with binary options this article should help you quite a bit because price action is fixated around support and resistance level trading.  Support level trading is easier to spot and more frequent making it the most traded level with price action.  However, if you learn how to spot resistance levels and how to trade them effectively it can greatly increase your winning percentage and improve your price action strategy.  When it comes to trading with resistance levels we want an asset that has relatively low volatility, meaning that is isn’t prone to change directions drastically in a short amount of time.  We want a nice, steady and strong asset that doesn’t tend to cause quick reversals because it could mess up our strategy.  Some assets that have low volatility would be the EUR/USD, USD/CHF, USD/CAD, Apple, Exxon, Gold, and Silver.

In the picture below you can see an example of how this strategy is set up and implemented.  One of the best advantages about this strategy is that it can be done with a universal time frame.  Meaning that any time frame works however research as shown that traders that tend to use a longer time frame and expiry time oftentimes have a higher win percentage.  When it comes to spotting a resistance level we need to wait for an upper barrier to be created at an imaginary level, this level is known as our resistance level.  As you can see in the picture below we have an “imaginary” level where price bounces off an upper barrier and heads back down in a bearish movement.  In order to trade resistance levels we need to wait for three occurrences to happen.  The first would be the creation of our resistance level as seen in the picture below.  The second occurrence needed would be an upward break in our resistance level, while the last thing that needs to happen would be a downward break in our resistance level.  This last break in our resistance level is also our trading signal, signaling to us to place a put trade for an appropriate expiry time.  To get an idea of appropriate expiry times look at the table below.

Timeframe Used

Suggested Expiry Time

1 Minute

30 – 180 Seconds

5 Minute

1-5 Minutes

15 Minute

5-15 Minutes

30 Minute

15-30 Minutes

1 Hour

30-60 Minutes

4 Hour

1-2 Hours


4 Hours or End-of-Day

This advance resistance level binary options strategy is a great strategy to use on its own but even better when combined with other trading strategies.  Profiting with binary options is no walk in the park but hopefully this strategy can take you one step closer to achieving financial freedom and achieving your dreams.  If you have any questions or comments please feel to leave them below.

Break Out Strategy for Binary Options

Thursday, January 9th, 2014

Thursday, January 9th, 2014 by Michael Freeman

Let’s face it! Relying on fundamental analysis alone to extract strong market signals from financial data and news can be as challenging as searching for a ‘needle in a haystack’. Not every day a CEO of a top leading company sales his/her shares back,  Apple can’t introduce a new product to the market every day and unfortunately companies can’t release a corporate earning report every day. Wouldn’t it be easier to predict short term trends if we had strong market signals every day? Fundamental analysis is very important because we don’t want to miss out on obvious trend changing events that can affect the financial assets we trade but since most of us don’t possess ‘inside information’ , identifying strong market signals can be challenging. In fact, in most cases the news just breakout and we learn about the trend shifting events after they already happen, these Bullish and Bearish events are represented by a price breakout on our binary options price charts. As an alternative to full reliance on fundamental analysis, it’s important to integrate chart-analysis to our daily routine and focus our efforts on the price action tools that are available to us such as technical analysis indicators and chart setups. These tools can help us identify short-term market sentiments that affect the movement of price. One of our biggest enemies as binary options traders or any day traders, is the “break out monster” that lurks in the dark and literally comes out of no where. Let’s explore this phenomenon.

Break Out Strategy In Practice

In order to understand what a break out is and how we can identify it when it happens, we must understand the concept of ‘Support and Resistance”. Defined in simple words, a break out occurs when the asset’s price shifts away from the boundaries of the support and resistance points. Support level is the lowest expected price level. Once the asset’s price reaches the support level, price is expected to bounce back up. Resistance level is the opposite of the support level. Once the price of the asset reaches this level, price is expected to reverse unless price had already exceeded minor price fluctuations or “noise” , the price will continue to rise until it reaches a new support level.  A break out occurs when price escapes the limits of the support and resistance levels. Break outs are not limited to a specific time frame, market or an asset type and can be analysed on different time charts.



Unexpected Break outs and Proper Response

So what triggers breakouts? We know that an unexpected price movement, above or below the support and resistance levels, can occur when a Bullish or a Bearish market event takes place, is happens suddenly and causes the price to break out. Trading during a break out can be tricky since we’re dealing with a completely unexpected price movement. break outs can continue for more than an hour and in this case they indicate a downtrend or an uptrend, enabling us to take advantage of the momentum and ride the trend while it lasts.

Try researching for a good break out strategy and you won’t find targeted, instructive information on the topic and this is because it is generally not safe to trade during a break out. If anything, I would use it as a signal to step back and wait until the asset’s price settles again within the boundaries of support and resistance levels. In a previous article I reviewed the Fence Trading Strategy with Bollinger Bands, which can assist you with identifying the resistance points and trade based on a predicted range. This unique Fence Trading Strategy allows you to double the potential profit while minimizing the risk.

Thank you for reading the article on Break Out Strategy for binary Options. Learn more about Indicators and Charts and make sure to checkout the latest Binary Options Strategy video on my YouTube Channel.

Fence Trading Strategy for Binary Options

Thursday, January 2nd, 2014

Thursday, January 2nd, 2014 by Michael Freeman

The Fence Trading Strategy, also known as ‘Double Profit’, allows traders to increase the ITM payout and minimize the potential OTM loss. The ideal situation for Fence Trading is when the asset’s price bounces up and down within a reasonable price range allowing us to enter into two opposite trades and as close as possible to the highest and lowest prices on the asset’s chart. By creating a wide enough range, we can increase the probability to win both trades and get double the ITM payout, hence the term ‘Double Profit’.

At the highest price level within the ‘Fence’ we enter a PUT prediction while at the lowest price level we enter a CALL prediction and our goal is to ensure that the asset’s closing/expiry price is between the price levels of the upper and lower trades.

Fence Trading Strategy Example

Let’s say that the price of Asset A is currently $25, yielding a %75 ITM return and a %0 OTM return. We decide to invest $100 predicting a price increase upon expiry which is set at 60 minutes. 20 minutes later the price of asset A  reaches $30, based on the neutral trend we assume that the price will close below $30 and we invest another $100, predicting a price decrease. At this point we entered a Call and a Put predictions creating a “Fence” between $25 and $30.  If the final asset’s price(expiry) falls between the the lowest and highest price levels, we will get the highest return on the investment formulated in the first example below.

Asset A expiry =$25-$30 ($100+$75)+($100+$75).

Initial Investment = $200, Ending Balance = $350, Profit = $150.00


Asset A expiry > $30 ($100+$75)+($100-$100).

Initial Investment = $200, Ending Balance = $175, Loss = -$25.00


Asset A expiry < $25 ($100-$100)+($100+$75).

Initial Investment = $200, Ending Balance = $175, Loss = -$25.00

The obvious conclusion is that with the Fence Trading Strategy we can significantly reduce the loss on OTM trades while doubling the potential profit! The profit on winning trades is 6 times higher than the potential loss ($150 vs -$25) which means that even if we lose a few consecutive trades we will still take back more profit over a volume of trades. This is definitely a winning binary options strategy!




Fence Trading and Bollinger Bands®

Now that we understand the great potential behind Fence Trading, it’s important to learn how we can properly identify a neutral trend while spotting the ‘right amount’ of price volatility to indicate a safe entry point so we can safely utilize this binary options strategy. The Bollinger Bands are used as a technical analysis indicator allowing us to measure the current price volatility for any underlying asset. The volatility bands are positioned above/below the moving average line, forming a range that is constantly adjusted depending on the market volatility, making it an ‘ideal indicator’ for Fence Trading. The visual representation of the Bollinger Bands is used to predict the ideal ‘lowest and highest’ entry points and confirm the presence of a neutral trend for the current time period displayed on the asset’s chart.

The Bollinger Bands are available Free on Meta Trader 4 and FreeStockCharts.

Fence Trading combined with Bollinger Bands make up a very solid strategy. It’s also suggested that you set the expiry for one hour, giving yourself enough ‘response time’ to enter the 2nd trade. Remember that binary options involves high-risk, therefore any strategy that attempts to minimize the potential loss will ultimately minimize the risk and allow you generate more profit! Before you ‘jump in the water’ head first with $100 trades.. make sure to put the Fence Trading Strategy to the test with lower trade amounts or on a demo account. For brokers offering low trades amounts and a demo account visit the Recommended Binary Options Brokers reviews.

Custom GBP/USD Strategy for Binary Options

Friday, November 22nd, 2013

Friday, November 22nd, 2013 by Tim Lanoue 

Perhaps one of the most reliable but not traded assets would be the GBP/USD currency asset.  Oftentimes when it comes to trading a currency pair the EUR/USD asset takes the spotlight but if you notice that the EUR/USD is wild someday then maybe you could give the GBP/USD asset a shot.  This is just another one of those cases for when the markets aren’t in your favor and why you would want a variety of strategies to utilize to keep a consistent income.  The foundation of the strategy is based around the use of fundamental analysis which we will cover below.


For those of you who are unfamiliar with the fundamental analysis technique it is simply the analysis of an assets financial health, new releases and competitive rivals.  When using fundamental analysis it is essential that we have access to a financial portal like Google Finance.

GBP/USD Strategy – How to Trade GBP/USD?  

One of the ways that we use this strategy is to access our financial portal and keep an eye out for the UK Inflation Letter.  The UK Inflation Letter is a letter composed by the Bank of England’s Chairman to the House of Lords about the status of inflation present in the country.  This letter will affect the UK economy for many months so if you watch out for it you can place very large trades accordingly that will more than likely work out in your favor.

The second way to trade the GBP/USD would be to wait for the release of UK manufacturing data that is publicized monthly.  Now keep in mind that this report is not nearly as significant as the inflation report so the affect it will have on the markets will not be as severe.  Now when preparing to trade with these two fundamental analysis tools it is important to realize that we kind of want a trend to develop first to act as a confirmation.  So for example, after the press release we see a rapid drop in the price of the GBP/USD asset so we wait a moment or two longer before placing a put trade just to confirm to us that the asset is still heading in that direction.  The opposite goes for if the price of the asset is affected positively and the asset’s price presents a strong bullish trend, in this case one must wait a little longer and then place a call trade.

This is a simple to use GBP/USD strategy that does not require the use of technical analysis which is great because we don’t have to watch charts for a prolonged period of time.  This is a great strategy to the use if you are interested in trading the GBP/USD currency asset on a binary options platform.  If you have any questions or would like to leave a comment and for suggestions, comments and all other questions, email me directly at

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Custom Moving Average Strategy for Binary Options

Friday, November 8th, 2013

Friday, November 8th, 2013 by Tim Lanoue

In a constantly changing market the likelihood that someone will have an advantage over the markets is slim to none, however, if we traders stay hungry and keep increasing our vast knowledge about trading indicators and strategies then hopefully we can level the playing field some.  With this in mind we are going to discuss a binary option strategy that has help many traders to significantly increase their success rate lately.  The strategy is relatively simple to apply and the only indicators involved are two moving averages. One of the key scenarios we need to have happen before we think about implementing this strategy would be that our desired asset must have either a strong bullish or bearish trend.  So if the asset you are analyzing has either of these two characteristics then you are good to go however if there is a neutral trend involved it is best to stay away, after all we are dealing with moving averages.  For those of you who are unfamiliar with what moving averages are they are an indicator that takes the summation of all buy and sell orders over a certain period of time.  The summation of these buy and sell orders make up the average component of this indicator while the time period chosen affects the line average over that period.

 Moving Average Strategy – Explained! 

In this strategy we have two moving averages set at 3 and the other set at 7.  For those of you traders who like to place a good amount of traders per day this strategy is one for you.  When using this strategy we want to use a timeframe of 5 minutes and have expiry times set for 5 to 10 minutes.  This is a quick acting strategy that requires a decent amount of attention and fast acting trade entries.  In the picture below you can see an example of this moving average strategy in action.


As seen above we have the Eur/Usd asset that is displaying a relatively strong bullish trend.  Before we place any trades we need to wait for two conditions to be met, the first being that either a strong uptrend or downtrend be present.  The second condition that must be met is that we need our two moving average lines to cross each other right on the outside of a candle or in the middle of the candle.  An additional condition could be established if you want to play it safe and that is you can wait for a confirmation candle to appear before placing your trade, I usually do that except for instances like the second trade to the left where the two moving average lines crossed right aside the red candle. This moving average strategy is one that I made up myself and so far I have seen an average win rate of about 70% out of my last 400 trades so this is one to certainly try out.

If you have any questions regarding this strategy or trading binary options in general please feel free to leave a comment below or any additional questions can be answered at