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Binary Options Strategy.

Started by admin, Sep 30, 2019, 04:15 pm

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Momentum Strategy.
The momentum is an important indicator of the speed with which the price of an asset moves. For binary options traders, it can be both a great way to find trading opportunities and a helpful tool to pick the right binary options type for the current market environment.
What Is A Momentum Strategy?
The momentum is a technical indicator that compares where the price of an asset now to a price in the past. There are different ways of calculating the momentum:
Absolute . This way compares the current price to a price in the past and ignores everything in between. The most popular absolute interpretation is the momentum indicator, which compares the closing price of the last period to the closing price 14 periods ago (you can also choose any other number, but 14 is the default setting). Process oriented . This way of analysing the momentum considers every period and calculates the distance which the average period has moved. Many technical indicators calculate this value in slightly different ways, but the most popular of them is the Average True Range. Relative . Some indicators compare the current momentum of the market to a historical average. These indicators help you understand whether the current market environment is better suited for binary options types that create higher payouts but require strong movements (for example one touch options or ladder options) or for their low-risk alternatives that can win trades with smaller movements but create lower payouts.
Most of the time, these indicators display their result as a percentage value of the average momentum, with 100 being the baseline.Both indications are similar, but also very different. Let's see how you can use them to trade binary options.
How Can I Trade A Momentum Strategy.
Binary options offer a number of great strategies to trade the momentum. The simplest of them uses the momentum indicator and boundary options.
Boundary options are such a great way of trading the momentum because they are the only options type that enables you to win a trade on momentum alone. Boundary options define two target prices, one above the current market price and one below it. Both target prices are equally far away, and you win your option as soon as the market touches one of the target prices.
This means it is unimportant where the market moves, as long as it moves. The momentum can help you make this prediction. Assume that an asset is trading for £100. Your broker offers you a boundary option with target prices at £99 and £101, and when you adjust your momentum to meet your expiry, it reads 2.
Now you know that the market has moved twice as far in the recent past as it would have to move to win your boundary options. This seems like a good investment opportunity. If the momentum were only 0.5, you know that this would be a bad time to invest.
5-Minute Strategy.
A good 5-minute strategy is one of the best ways of trading binary options. To get it right, there are a few things you need to know.
What Is A 5-Minute Strategy?
A 5-minute strategy is a strategy for trading binary options with an expiry of 5-minutes. While there are thousands of possible 5-minute strategies, there are a few criteria that can help you identify those that are ideal for you. In the eyes of many traders, 5-minute expiries are the sweet spot of expiries.
The market does not move as random as on shorter time frames, which reduces your risk. You can still make a lot of trades in a day, which increases your earning potential.
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5-minute expiries are as short as possible but as long as necessary. A 5-minute strategy allows you to take advantage of this perfect connection. Let's take a look at two possible 5-minute strategies. Strategy 1: Trading MFI extremes with high/low optionsWith one exception, all 5-minute strategies are based on technical analysis.
Over the next 5 minutes, fundamental influences are unimportant - for example, no stock will rise because the company behind it is doing well. The only thing that matters is the relationship of supply and demand on the stock exchange -whether traders are currently buying or selling. Technical analysis is the only way of understanding this relationship. One of the technical indicators that can best describe the relationship between supply and demand is the Money Flow Index (MFI). The MFI compares the numbers of assets sold to the number of assets bought and generates a value between 0 and 100.
When the MFI reads 0, everybody who wanted to trade the asset wanted to sell it. When the MFI reads 100, everybody who wanted to trade the asset wanted to buy it. When the MFI reads 50, the number of traders who wanted to sell the asset was exactly equal to the number of traders who wanted to buy it.
The relationship between buying and selling traders allows you to understand what will happen to the price of the asset next. Since the price is determined by supply and demand, a strong movement where too many have already bought or sold exhausts one side of this relationship. The market has to turn around.
When too many traders have already bought an asset, there are too few traders left to push the market upwards. Demand will exhaust, and the market will fall. When too many traders have already sold an asset, there are too few traders left to push the market downwards. Supply will exhaust, and the market will rise.
The MFI helps you to identify these situations:
When the MFI reaches a value over 80, the market is overbought. It will likely start to fall soon. When the MFI reaches a value below 20, the market is oversold. It will likely start to rise soon.
Binary options offer you the ideal tool for trading this prediction:
Invest in a low option when the MFI reaches a value over 80. Invest in a high option when the MFI reaches a value below 20.
This strategy work especially great as a 5-minute strategy. During long-term trends (one year or longer), the MFI often stay in the over- or underbought areas for long periods. Fundamental influences are strong on these time frames and can keep pushing the market in the same direction for years. On shorter time frames, fundamental influences are unimportant. It is more important to identify the number of traders that are left to buy or sell an asset and draw the right conclusions from this indication.
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The MFI is the perfect tool for this diagnosis, and binary options are the ideal way of trading it.
5 Min Strategy 2: Trading the news.
If you feel uncomfortable with a strategy that uses only a mathematical basis for its prediction, there is one alternative to technical analysis as the basis of a 5-minute strategy: trading the news. When important news hits the market, there usually is a quick, strong reaction. You can trade this reaction with a high/low option, one touch option, or ladder option, depending on your preference and tolerance of risk. This strategy works well as a 5-minute strategy because longer expiries face the threat of other events influencing the market and causing a price change. For the next 5 minutes after the release of important news, however, you can be sure that the news will dominate the market.
Rainbow Strategy.
The rainbow strategy for binary options combines sophisticated predictions with simple signals. It is ideal for traders who want to increase their profits by using a proven, successful strategy.
What Is A Rainbow Strategy?
A rainbow strategy is a three moving averages crossover strategy. Most traders use a different colour for every moving average, hence the name ͚rainbow͛ strategy. The idea behind the rainbow strategy is simple. Moving averages that use many periods for their calculation take longer to react to price changes than moving averages that use fewer periods.
During a strong movement, multiple moving averages should, therefore, be stocked from slowest to fastest in the direction of the current market price.
The fastest moving average should be the closest to the current market price. The second fastest moving average should be the second closest to the current market price, and so on.
When you see multiple moving averages stacked in the right way you know that the market has a strong sense of direction and that now is a good time to invest. This is the basic logic of the rainbow strategy. Theoretically, you could use as many moving averages as you like for this strategy, but the rainbow strategy use three. Three is a good sweet spot because it keeps things accurate yet simple enough to handle.
Adding more indicators would create no significant increase in accuracy, but using only two moving averages would be much less accurate without simplifying things. These three moving averages determine when you invest.
When the shortest moving average is above the medium moving average which is above the longest moving average, you invest in rising prices. When the shortest moving average is below the medium moving average which is below the longest moving average, you invest in falling prices.
You could use any number of periods for each moving average. There are two rules of thumb you should at least consider, though:
Double the number of periods for each moving average.If your fastest moving average uses 5 periods, use 10 and 20 for the slower ones, for example. This ratio guarantees that the moving averages are different enough to create meaningful signals yet similar enough to create some signals at all. Use popular values. A trading week has five days, which is why using multiples of five is a good idea for this strategy. These values help you see the same trading opportunities as other traders, which increases the supply and demand that others will create to your advantage.
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How to trade a rainbow strategy with digital options.
To trade the rainbow strategy with binary options, you have to wait for your moving averages to be stacked in the right order. When that happens, you have three options for when to invest:
Invest right away. Some traders invest immediately when the final moving average positions itself in the right order. This way of trading the rainbow strategy creates the most signals, which is why it offers the most potential but also the highest risk. Wait a period. Some traders wait if the moving averages remain in the order until the next period is over. If it does, you have lost little time but gained a lot of security because you know that the signal was more than the result of a sideways movement. Wait for two or more periods. Some traders wait until two or more periods have confirmed the signal. Waiting for too long, however, reduces the accuracy of your signal because the market might have already started to turn. We recommend to wait no longer than three periods or ignore the signal. You can trade this strategy with high/low options, one touch options, or ladder options. High/low options are the safest way; ladder options have the highest potential. Decide which binary options types is right for you based on your personality, especially your risk tolerance.
Rainbow Strategy Video From IQ Option.
End Of Day Strategy.
An end of day strategy for binary options can find you profitable trading opportunities while only requiring a very limited time investment.
End Of Day Strategy Explained.
The end of day strategy is less of a strategy that tells you which signals to use and more of a strategy that tells you when to look for signals. The strategy assumes that the best time of the day to trade is at the end of the day.
The end of the trading day shows some unique characteristics. This is mostly due to the fact that day traders stop their trading when a stock exchange is about to close.
Day traders are traders that never hold overnight positions. They invest for the short run and argue that a lot can happen overnight, which is why it would be unwise to hold a position during this time.
Since there are a lot of day traders out there, their absence significantly reduces the trading volume. The market is a bit slower and does things it is unlikely to do at any other time of the day. Traders with an end of day strategy wait for this environment, arguing that signals are clearer and trading opportunities better.
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Trading End Of Day Options.
While you can theoretically trade any trading strategy at the end of a trading day, there are a few strategies that work especially well during this time. Let's take a look at the most profitable of them: trading closing gaps.
Closing gaps are especially likely during times with low volume, which is why the end of the trading day is the best time of the day to trade them. The accurate predictions of closing gaps make them especially attractive to traders of binary options types with a higher payout such as one touch options.
A gap is a jump in price action. For example, if an asset traded at £100 and jumped to £100.1 without covering the range in between (without trading for £100.01, £100.02, and so on), it creates a gap of £0.1.
Depending on how this gap was created, it can mean different things. A gap that was accompanied by a high volume likely is the result of significant news reaching the market, which probably starts a strong new movement. Near the end of the trading day, however, such gaps almost never happen.
What we find instead are gaps that are likely to close.
Near the end of the trading day, there are so few traders left in the market that a few traders, possibly even a single trader, are enough to make the market jump. The resulting gaps are weak because they are the result of a single person's decision. Most other traders will consider the advance unjustified and invest in the opposite direction:
If the gap points upwards, most traders will consider the new price too high. They will sell their assets. If the gap points downwards, most traders will consider the new price too low. They will buy new assets.
Because of both reasons, gaps that happen near the end of the day are likely to close.
This knowledge allows you to trade a one touch IQ [url="https://affiliate.iqoption.com/redir/?aff=1085&instrument=options"]IQ Option[/url]. When your broker offers you a one touch IQ Option with a target price inside the reach of the gap, you know that the market will likely reach this target price. If the expiry is reasonable, too, invest.
Alternatively, you can also trade a high/low IQ Option that predicts a closing gap.
Expiry Strategy.
Base Line Expiry I learned a long time ago how to judge the duration of a given signal. Well before I began trading binary options. Here I will explain how to develop an expiry strategy.The first thing to do is to identify what your signal is.Is it a:
trend line bounce stochastic crossover shift in momentum candlestick pattern or a combination.
Once done, you go back over your charts for a given period and identify all the signals. The time frame is not important at this point, this technique works in all. Mark the strong signals and weak signals. Now count how many bars or candles it takes for each signal to move into the money.
Once that is done you can take an average of the number of bars needed. Both for the strong and for the weak signals to move into the money. These averages are now your base line expiry for the signal. If you are using a chart of hourly prices and your signal takes an average of 3.7 candles to move into the money, you will want to use an expiry that coincides with that time. This could be a mid day, end of day, 4 hour or other IQ Option. Whatever expiry matches your signal horizon. If the signals takes 3.7 candles and you are using a daily chart that means 3.7 days. If using the hourly chart, it means 3.7 hours, and so on.
Study the chart below. I am going to use a basic moving average strategy to demonstrate. I will use the 30 bar exponential moving average. It hugs prices closer than a simple moving average and will give us more signals to count.
Also, in order to weed out bad signals and to improve results, I am only choosing the bullish trend following signals. So, there are 15 total signals. 6 weaker signals and 9 stronger signals. On average, it takes 4.2 bars for these signals to move into the money and reach a peak.
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That means, since this is an hourly chart, that each signal will move into profitability and reach the peak of that movement in about 4 hours. So for expiry I would want to choose the closest expiry to 4 hours that is available. If a good choice is not available then no trade can be comfortably made. Do not try and force trades where they do not fit.
Breaking it down a little, the weak signals peak out in about 2.6 hours versus the stronger signals. Stronger signals take about 5.3 hours. Putting this knowledge in perspective, a weaker signal might be one that is close to resistance. A stronger signal might be one that is not close to resistance. Also, a stronger signal might be one where price action makes a long white candle and definitive move above or from the moving average whereas a weaker one might only create small candles and spinning tops.
Additional Tips For Choosing IQ Option Expiry.
Choosing an expiry is one of the most important factors in making a trade. The other key factor being direction. All too often I get asked questions about why a trade went bad in the final moments. One of the most common areas of error I find is in choosing expiry.
Of course there can also be errors in analysis, trends or random events. But the focus of this discussion is expiry. It is obvious that you don't want to use 60 second expiry when trading on weekly charts. Just as clearly, you won't want to use end of day expiry when trading off the 60 second charts. So how do you determine what the best expiry will be?
One question you must ask yourself is: if you are trading with or against the trend.
When trading against the trend I would suggest a shorter expiry than a longer one. Simply because there is less chance of an extended move counter to the trend. Your expiry must be more precise. When you trade with the trend your expiry can be a little farther out.
A trend following trade has a higher likelihood of closing in the money so does not need to be as precise. A signal that follows the trend is a lot more likely to be in the money rather than one that goes against the trend.
Another factor that can have a big impact on which expiry is best for a given trade is support and resistance. The relative level of prices to a support or resistance line is a factor in how likely a trade is to move in a given direction.
If prices are near a S/R line and moving away there is much more chance of your IQ Option closing in the money than if prices are near a S/R line and moving toward it. When prices are moving toward one of these lines, the chances of the movement being halted and/or reversed is much higher than when prices are moving away from one.
So, how does this apply to expiry? If you are taking a signal that has a higher chance of being halted or reversed then you would want to choose a shorter expiry than if the same signal were not faced with a S/R level. I purposefully did not say call or put, or bullish or bearish, because this applies to both bullish and bearish trading. Also, keep in mind that support and resistance can be in the form of lines drawn at areas of interesting price action or peaks, moving averages, Fibonacci's, envelopes and bands.
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1-Hour Strategy.
IQ Option can make you a profit of 70 percent or more within only 1 hour. Compare that to stocks, and you understand why IQ Option are so successful. To trade 1-hour strategy with IQ Option, there are a few things you have to know. This article explains them.
In detail, you will learn the three crucial steps to trading a 1-hour strategy with IQ Option, which are:
Step 1: Finding the right indicators Step 2: Finding the right time frame Step 3: Finding the right IQ Option type.
With these three steps, you will immediately be able to create and trade a successful 1-hour strategy with IQ Option.
Step 1: Finding The Right Indicators.
The first step to trading a 1-hour strategy with IQ Option is deciding which type of indicator you want to use to create your signals.
To find the right indicator for you, there are a few things you have to consider:
Your skills. Some strategies are ideal for traders with great pattern matching skills; others are ideal for traders who are great with numbers. To create a successful strategy, you have to match your strategy to your skills. Your character. Some indicators create many but risky signals; others create reliable but few signals. Depending on your risk tolerance, you should pick the type of indicator that helps you sleep at night and not get bored. Your daily schedule. Some indicators require you to trade during a specific time of the day. Traders of closing gaps, for example, can find the best signals during the slow market environment of the ending trading day. Additionally, some indicators require more time to analyse than others. Make sure to choose an indicator for which you have enough time, and that fits your schedule.
With these criteria clearly defined, let's take a look at a few indicators for each type of trader. To keep things simple, we will focus on strategies that you can trade during the entire day. We will later mention a few strategies that you can only trade during special times.
As our main criteria, we will divide strategies into pattern-matching and numerical strategies.
Pattern-matching strategies require you to find certain patterns in the movements of an asset's price, Numerical strategies require you to interpret numerical values.
Additionally, we will distinguish strategies into high-reward and low/risk strategies, and into quick and detailed strategies.
High-reward strategies are risky but have a lot of potential, low-risk strategies are safe but have a limited potential. Quick strategies require less time, but you have to blindly trust your indicators, detailed strategies leave more work to you, but it will be easier for you to trust your signals.
Let's see how different strategies match these criteria.
Pattern matching strategy Numerical strategy High-reward, quick Simple candlestick analysis. This strategy trades special formations that consist of only one to three candlesticks. Finding these formations is quick and easy, but they lack the reliability of more complex signals. Because there are so many candlesticks, however, executing this strategy well will win you more trades than with other strategies. Trading extreme areas of the MFI. The Money Flow Index (MFI) creates a value between 0 and 100 that indicates the strength of a movement. Values over 80 indicate that the market has little room left to rise, values under 20 indicate that the market has little room left to fall. All you have to do to trade these predictions is invest in a low IQ Option when the market reaches a value over 80 and a high IQ Option when the market reaches a value under 20. This strategy can create many signals, but since it is based on a single technical indicator, it is also risky. High-reward, detailed Swing trading. During trends, the market alternates upwards and downwards movements. Swing traders try to take advantage of each of these movements. This strategy will provide you with many trading opportunities during a trend, but trading a single swing is always riskier than trading the trend as a whole. Trading the ATR & the ADX with boundary options. The ATR calculates the average range of past movements, the ADX its strength of direction. With both values, you can predict whether the market has enough energy to reach one of the target prices. This strategy can create many signals and create a high payout, but is also risky. Low-risk, quick Three moving average crossovers. Combining three moving averages can create highly secure signals. You have to do almost nothing to execute the strategy. Simply sit back and wait for your software to create a signal. On the downside, this strategy will create few signals, which limits its potential. Trading MFI divergences. When the MFI's movement fails to mirror the market, the current trend is deep trouble. For example, when the market creates a new high during an uptrend but the MFI fails to create a new high, too, the market will soon turn downwards. You can take advantage of this prediction by investing in a low IQ Option. This strategy can create secure signals with little time investment. Low-risk, detailed Continuation & reversal patterns. Continuation patterns are large price formations that allow for accurate predictions. These patterns are rare, but you can win a high percentage of your trades. Combining multiple technical indicators. On their own, all technical indicators are unreliable. But when you combine multiple indicators, you can filter out bad signals and create a more reliable strategy. For example, it makes sense to combine the MFI with the RSI or the ADX. These strategies will create fewer signals because you filter some of them out.
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Step 2: Finding The Right Time Frame.
Once you have found the right indicator, you have to think about which time frame to use. We are creating a strategy with an expiry of 1 hours, which gives you the first indication. Depending on which indicator you are using, however, you should trade a very different time frame.
The time frame of your chart defines the amount of time that is aggregated in one candlestick. When you are looking at a chart with a time frame of 15 minutes, for example, each candlestick in your chart represents 15 minutes of market movements. When you are looking at a chart with a time frame of 1 hour, each candlestick represents a 1 hour of market movements.
When you create your signals in a chart with a time frame of 15 minutes, you create different signals than in a chart with a time frame of 1 hour. To trade a successful 1-hour strategy, you have to find the type of signals that is perfect for your indicator.
For a 1 hour strategy, every indicator requires a specific time frame that matches the expiry to the time for which the indicator's predictions are valid. Let's look at our pattern-matching examples:
Simple candlesticks work best with a time frame of 1 hour. Simple candlesticks consist of only one to three candlesticks, which is why their predictions only apply to the next candlestick. After that, other influences are likely to override the candlestick, and it loses its predictive power. Therefore, you have to make sure that you only trade predictions that expire within the next candlestick. With a 1 hour expiry, this means using a 1-hour time frame. For swing trading, keep your time frame around 5 to 10 minutes. Swings need some time to develop. When you trade a chart with a time frame of 5 minutes and an expiry of 1 hour, you give the swing 12 candlesticks to develop. This is a good value for most trends. If you find that your timing is a little off, you can try a 10-minute chart, too. Three moving average crossovers work best with a time frame of 1 to 5 minutes. When you trade three moving average crossovers, you are looking for a movement that contains many candlesticks. It is probably best to trade three moving averages on a 5-minute time frame, too, but if you want to give your movements more time, you can also switch to a 1-minute chart. Everything else would be too long or too short, respectively. Reversal and continuation patterns provide plenty of opportunities. You can trade continuation and reverse patterns by trading the long movement they indicate or by trading the short breakout that occurs after the completion of the pattern. In the first case, you should use a time frame of 5 to 10 minutes to give the movement enough time to develop. In the second case, you should trade a time frame of 4 hours or even 1 day to make sure that you are truly trading the breakout and not a lot more.
As you can see from this list, the type of indicator predetermines the time frame you have to use for a 1-hour expiry. Some indicators predict where the next candlestick will go, in which case you need a long expiry to adjust the length of one candlestick to your expiry. Other indicators predict long movements, in which case you have to trade a shorter time frame to give the market enough time to develop an entire movement.
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This rule also applies to the numerical strategies:
Trading the MFI's extreme areas works best with a time frame of 5 to 10 minutes. This strategy allows for two trading styles. Some traders like to invest when the MFI enters an extreme area; some invest when it leaves the extreme. The first type has to use a shorter time frame to give the market more time, ideally 5 minutes. The second type can trade a longer time frame, ideally 10 minutes. For MFI divergences, use a 1-minute or 5-minute time frame. When the MFI diverges from the market, it can take a few periods until the market catches up. To create these signals in an environment that is ideal for a 1-hour strategy, keep the time frame short. 1-minute or 5-minutes charts provide the ideal environment for this strategy. For multiple technical indicators, use a 15-minute chart. When you combine multiple technical indicators, you create signals short to medium signals. These work best with a time frame of 15 minutes. Of course, your ideal time frame depends on your final strategy and the technical indicators you use. If necessary, adjust your time frame.
These recommendations are a good place to start for each strategy. Please remember, though, that they are only recommendations. Every trader is different, and if you should find that you can achieve better results with a different time frame than our recommendation, use whatever works. There is no right and wrong aside from what makes you money or loses you money.
Step 3: Finding The Right Trade Type.
After you have matched your indicator to a time frame, you have to match it to a IQ Option type. IQ Option offer many different types, and each type has its unique relationship of risk and reward.
To explain how IQ Option types relate to your strategy, let's take a closer look at the different IQ Option types. You will see that it is difficult to give general recommendations, but some IQ Option fit some strategies better than others.
High/low options are the classic IQ Option type with which you can predict whether the market will rise or fall over a period, in our case 1 hour. Because high/low options can win you a trade with the smallest possible movement in the right direction, they are the low-risk way of trading that works for all of these strategies. Executed well, each strategy should win you a high enough percentage to make a profit. One touch options define a target price, and you win your IQ Option when the market reaches this target price. The market does not have to remain at this target price, which is a great advantage, but you need a stronger movement because the target price is further away. One touch options are a good fit for trading the breakout of continuation and reversal patterns and those simple candlesticks that predict strong movements, for example the big candle. The might also Ladder options define multiple target prices and allow you to define whether the market will close above or below each target price. They allow for risky predictions that can create the highest payouts of all IQ Option and for secure predictions that allow a high winning percentage. Especially traders of pattern-matching strategies might be able to profit from this premise disproportionally. Boundary options are one touch options with two target prices, one above the current market price and one below it. Obviously, boundary options are ideal for trading the ATR and the ADX. Boundary options are the only options type with which you should trade this strategy. For all other strategies, boundary options are a bad fit. These strategies all provide clear predictions for where the market will go. Boundary options do not require you to predict a direction, which means that you waste a part of your prediction. If you traded a one touch IQ Option, you would get a higher payout and win just as many trades.
1-Hour Strategies That Require Special Trading Times.
The beauty of all strategies in this post is that they work well in any market environment and at any time. Consequently, any trader can use them. However, there are also strategies that specialize in a specific trading environment or a specific time. These strategies might be a better fit for traders who plan on trading these environments anyway.
The most prominent example of this type of strategy is trading closing gaps. Gaps are jumps in market price when the market jumps from one price level to a much higher or much lower price level.
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When gaps are accompanied by a high trading volume, they can indicate the beginning of a new movement or the strengthening of an existing one. Many traders back the gap, and there is enough momentum keep pushing the price into the direction of the gap. When gaps are accompanied by a low trading volume, they are likely to close. Few traders back the gap, and most traders are likely to consider it an unjustified advance. They will invest in the opposite direction, and the gap will close.
The beauty of closing gaps is that they provide you with one of the most accurate predictions that you can find with IQ Option. The gap will likely close within the next period, which gives you an exact expiry, and the gap's size gives you a clear target price.
Alternative Trade Types.
With this information, you can trade a one touch IQ Option or even a ladder IQ Option. You get a high payout and you should be able to win a high percentage of your trades, which means that you have a powerful strategy at your hands.
The downside of this strategy is that gaps that are accompanied by a low volume are difficult to find during most trading times. There are simply too many traders in the market to create a gap with a low volume. Therefore, low-volume gaps mostly occur near the end of the trading day.
Many traders are day traders. They close their position at the end of the day and never hold a position overnight. These traders will stop trading when the market is about to close because there is not enough time to make another trade.
Trading Hours.
When day traders have left the market, the trading will drop off significantly. Now you can find closing gaps. Monitor all time frames from 15 minutes to 1 hour, and trade any gaps you find with a one touch IQ Option with an expiry of 1 hour that predicts a closing gap.
Traders who work during the day and can only trade after work can use this strategy to make a profit despite their work.
The important point here is that you can trade successfully, even if your time is limited. If you have to trade during your lunch break, you can find successful strategies for this limitation, too.
As with anything in life, success means making the most of your limitations. With IQ Option, your limitations might help you to trade more successful than if you had none.
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1 Hour Strategy Overview.
A 1-hour strategy is one of the most popular types of trading strategies. It combines an expiry that seems natural to us with a wide array of possible indicators and IQ Option types, which means that every trader can create a strategy that is ideal for them.
Whether you prefer a pattern matching or a numerical strategy, a high-potential or a low-risk approach, and a simple or a complex prediction, you can create a 1-hour strategy based on any combination of these attributes.
Unless you are trading boundary options with the ATR and the ADX, we recommend starting with high/low options - they are the easiest type for newcomers.
Double Red Strategy.
The double red strategy is a simple to execute strategy that allows IQ Option traders to find many trading opportunities. Here's how you execute it.
What Is The Double Red Strategy?
The double red strategy is a trading strategy that wants to identify markets that feature falling prices. The ͞double red͟ in the name refers to the fact that the strategy waits for two periods with falling prices in a row before it creates a trading signal - periods with falling periods are often coloured red in trading charts.
The logic is simple: at significant price levels, the market often takes some time to sort itself out. After it has sorted itself out, however, the falling price movement is often stronger and more linear than an upwards movement, which is why it is a great investment opportunity.
For example, assume that there is a resistance. When the market approaches this resistance, it will never turn around immediately. It will edge itself closer and closer, test the resistance a few times, and eventually turn around. While the turnaround would be a great trading opportunity, finding the right timing is difficult. During the process of edging closer and closer to the resistance, the market will already create a few periods with falling prices that will fail to lead to a turnaround. You have to avoid investing in these periods.
To find the right timing, the double red strategy waits for a second consecutive period of falling prices that confirms the turnaround. When such a period occurs, the market has obviously stopped moving around the resistance and has started to move away from it again. Double red traders would invest now.
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