Saturday, 11 July 2015

binary trading strategy and best tool for profit

There are a very large number of binary options strategies available. Some of them are more complicated than others to follow. However, in this strategy tutorial we’re going to teach you one of the simplest and most efficient binary options strategies.
There is actually no clear name for this strategy however its accuracy has been proven on multiple occasions in the binary options business. In order to use this strategy you will only have to use a total of 4 indicators on your chart.
The great advantage of this newbie binary options winning strategy is the fact that it always promises proven results in around 75%-90% of the time you are trading. If you use this strategy well, you may as well achieve a winning ratio of above 90% all the time.
So, below you’ll find the complete description of this strategy as well as tips regarding its applicability. Follow these guidelines you trade next time and you will be able to win the majority of contracts you purchase.

UPDATE: There are now tools out there that will automatically execute this strategy for you in your binary broker account. These are called signals and bots. The best one of these is Signals365. The good thing about Signals365 is that it does not force you to sign up at any specific broker. You can use your own broker. It also has an accuracy of around 70% (which it actually achieves, unlike other tools).
These tools will basically scan the charts and use the strategy described in this article (and also other strategies) and based on those they will automatically execute trades or make predictions which you have to manually execute yourself. You'll of course be able to adjust how much they will be allowed to trade and how frequently.
I recommend using this strategy with one of the brokers in the list below, especially Cherry Trade (global) or 10Trade (non-USA only, licensed broker). I selected this list based on the availability of the indicators mentioned in this article (not all brokers have them - so you can end up not being able to use it at some brokers), reputation, easiness of withdrawal and payout rates.
UPDATE 2 - February 2015: I've decided to describe yet another beginner binary options strategy that I believe works perhaps even better than the initial Bollinger band strategy that this article was about. This strategy involves using long-term binary options and news trading in order to make very accurate predictions (i.e. you know that Apple will release a new iPhone next week, and as such predict that its stock prices will rise by next week). Check at the bottom of this page to read more about this strategy.
Related Article: Can you really make money in binary options?
Related Article: List of approved and secure binary options brokers
Related Article: Calculating your breakeven ratio when trading binary options

Beginner Binary Options Winning Strategy

It’s a little bit awkward to talk about a particular and well-established binary options winning strategy given the fact that this strategy doesn’t really have any name at all. However, let’s call it beginner binary options winning strategy, because effectively this is what it is. Read below to find out how this could be the best binary options strategy for beginners and what you will have to do in order to use it.
This strategy works by predicting the future movement of an asset taking in consideration the data supplied by four financial trading indicators. These indicators are mentioned below.
The indicators listed below are automatically generated by the charting feature offered by mist binary options brokers. It is extremely important to only register at binary options brokers that have these indicators (like the ones we listed on the right menu) otherwise you will not be able to use this strategy.
It’s also not really necessary to fully understand what these indicators precisely are in order to be able to use this strategy. If you want a full description about these indicators please check out our related article.
You can find the indicators listed below:
13 Exponential Moving Average (EMA)
20 Simple Moving Average (SMA)
26 Exponential Moving Average (EMA)
These three indicators are represented by three lines that are moving around surrounding the line on the charting platform that represents the value of the asset itself.
Bollinger Band
The Bollinger Band however is represented by two lines. The middle of these two lines is the average of the position of the above mentioned three indicators. So, basically the Bollinger Band has two boundaries, an upper boundary and a lower boundary in which the above-mentioned three indicators are positioned.
How to use:
Now, lets talk about the actual strategy itself. As explained, with this strategy you will be able to predict the future movement of an asset.
In order to use this strategy, you will have to activate the above-mentioned indicators on your charting interface.
First you will have to watch out for the following things:
– The 13 Exponential Moving Average (EMA) crosses the 20 Simple Moving Average (SMA)
– The 26 Exponential Moving Average (EMA) will cross the 20 Simple Moving Average (SMA) AFTER WHICH it will cross the 13 Exponential Moving Average (EMA)
If the above conditions are met, then in about 95% of the cases the following will happen:
– The value of the asset will go outside of one of the Bollinger Band boundaries.
You will be able to tell which boundary the asset will cross based on the direction of the general movement of the above-mentioned three indicators.
If in average the three indicators (except the Bollinger Band) move up, then the asset will break the BB’s upper boundary. If in average the three indicators will move down, then the asset will break the BB’s lower boundary.
Like mentioned, the above outlined scenario will happen around 90%-95% of the time.

Applicability of this Strategy

So, now you would want to know what exactly you would have to do in order to use this strategy to your advantage. There are actually multiple positions you could open in such cases. Let’s take the example below.
– The exchange rate of EUR/USD is at 1.35 at this moment.
– The upper boundary of the Bollinger Band is at 1.37
– The lower boundary of the Bollinger Band is at 1.33
Now, you notice that the 13 EMA has crossed the 20 SMA and that the 26 EMA crossed the 20 SMA and is about to cross the 13 EMA soon.
You also notice that the three of these indicators are moving downwards.
In this case you will know that during the next 15-30 minutes the value of EUR/USD will bounce BELOW the lower BB line, in other words, it will be below 1.33.
You will have to remember that after a short while the value of the underlying asset will always return back into the two boundaries of the Bollinger Band. There are basically two choices you can make in this situation.
a.) Buy a boundary option or a one-touch option and bet on the fact that the value of EUR/USD will hit a low boundary of at least 1.33. Remember, using the newbie strategy you were able to predict that the asset will ~90% go below 1.33 the next 15-30 minutes.
This choice is a bit risky because you cannot know exactly when that event will happen during the next 15-30 minutes. However, purchasing a boundary option or a one-touch option can offer you extremely high payout rates of up to 500%.
b.) Buy a simple high/low option and bet on the outcome that in 15-30 minutes the value of the asset (in this case the exchange rate of EUR/USD) will be BELOW the current line (in this case 1.35).
This choice is less risky because the value of the asset will definitely go down during this time frame. By choosing a high/low option it is not relevant if the value of the asset will reach a specific value (in this case 1.33); it only matters that its value will decrease – and as the data from the strategy told us, the value will indeed decrease.

Best applicability

So, at first read the strategy might sound a little bit complicated to total newcomers who have never traded binary options or other instruments online. However once you try it out yourself it’s actually very easy.
You will only have to watch the movement of the three indicators (13 EMA, 20 SMA, 26 EMA). You will only have to enable these indicators on your charting interface in order to use them.
You will be able to tell which is which based on the color of the line representing them. You will only have to remember which color is which after which with a little practice you will be able to recognize them with ease.
Here is a color reference for these indicators:
13 EMA – Blue
20 SMA – Red
26 EMA – Cyan, light blue
The colors are usually the same at all brokers.
So, after watching these indicators, and you see the pattern mentioned above (13 WMA crossing the 20 SMA, 26 EMA crossing the 20 SMA after which crossing the 13 EMA) you will be able to predict the movement of the underlying asset.
If these three indicators collectively move up, then the asset will break the upper boundary of the BB (Bollinger Band). If these indicators show a downward trend movement, then the value of the asset will break the lower limit of the BB.
And it’s really this simple. Use this, and you will be able to win 75%-95% of the time you trade. We believe that this is probably the best binary options strategy for beginners that is at this moment out there.
NEW: There are now tools out there that will do this process for you. These are called binary options signals. The tools are apps that will scan the charts at various brokers and when they discover the trends described above, they will automatically make the correct investment for you. The best tool of this kind that I found is Signals365. Unlike most other signal apps, this one does not force you to sign up at any broker. You can use any broker you want and simultaneously use the signal app as well.
In order to be able to execute all the above, you will also have to find a binary options brokers that has all the mentioned indicators and charts. One of the legit brokers we found to have all this is Cherry Trade. Cherry Trade is also the only broker available that has a same-day withdrawal policy (i.e. the broker will send you your winnings within a maximum of 24 hours after you’ve requested it).

New: Long-term Binary Options Strategy for Beginners

As written in the final paragraph of the intro, I decided to also talk about a different beginner binary strategy. This strategy specifically focuses on binary options with long expiration times. The reason this wasn’t included in the initial version of this guide was because long-term options are only a recent addition to brokers’ services.
Essentially, this strategy works by you having to follow major news events related to the stocks of important companies and then make accurate long-term predictions.
Below you will find one example of how this strategy works:
You know that Apple will launch a new iPhone on October 1st. You also know that usually this will always result in an increase in Apple’s stock prices the next day.
Around two weeks before this event takes place, you buy a binary options contract that predicts that Apple’s stocks will increase by October 2. And boom, you just won because this prediction will extremely likely come true.
You can do this strategy with hundreds of other companies and with other assets as well than stocks. You need to check which major news events are upcoming during the next few weeks and months and make long-term predictions.
I actually believe that this strategy is even easier than the initial Bollinger band strategy described above. With this strategy you don’t have to use charts and indicators; you’ll only have to wait for major news events to happen (expected product launches by companies, annual revenue reports, etc.).
You can find a full description of this strategy by reading this article. Like said, I actually think this method is actually easier then the one described here in this page initially, so definitely check it out.

Learn More About Binary Options Strategies

This is just one of the many binary options winning strategies for beginners available. We left that this was one of the simplest strategies available, so if you are new to binary options then you should begin with mastering this strategy.
After you have mastered this strategy come back to our site and read about additional and more advanced strategies that will increase your winning margin even further.
Remember, binary options trading is not about luck, it’s about strategy and practice.
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Disclaimer
OptionsAdvice.com cannot be held liable for any damages incurred due to the usage of any information displayed on this website. The information and trading guides found on the webiste constitute the authors' opinion only. Binary options involve high-risk and are not suitable for all investors. Binary options may not be legal in your jurisdiction. It's visitors' responsibility to make sure binary options are legal in their jurisdiction before enganing in trading activity.
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bollinger band

The Bollinger Band however is represented by two lines. The middle of these two lines is the average of the position of the above mentioned three indicators. So, basically the Bollinger Band has two boundaries, an upper boundary and a lower boundary in which the above-mentioned three indicators are positioned.

FUNDAMENTAL TRADING


Trading the News – Forex Trading Strategy


So far we have discussed many Forex trading strategies that allow us to analyze the price action from many different angles. These strategies give us the technicals but there's one factor that always has the potential to make all of the technicals irrelevant and just take the market in every way that it likes. Big announcements or news coming out of different countries can have a huge effect on the market, rendering all our analyses meaningless.
The Forex market is a 24-hour market and news can always come in from all over the world. Trading based on economic news and data can fit any kind of trader wherever he might be and whichever currencies he chooses to trade. If you're in Asia and like to trade the YEN, then there's news from Japan almost every day. If you like AUD or NZD then you have to watch out for news out of Australia, New Zealand and China. Same goes for EUR, GBP and USD; you have to check the news during the morning and the afternoon if you live somewhere close to European time zones.
In stocks, major news is considered the announcements of company earnings, profits, profits per share, industry, macro-economic data etc. In Forex, news that moves the markets is Central Bank minutes and members press conferences, inflation reports as well as national and international economic news and data. One of the first lessons for new traders is that when trading you should keep out of the market during major news releases. Nevertheless, we often find ourselves trading during the news and most of the time it's not simply a matter of greed. Some like the adrenaline, some are addicted, but the majority of traders just like the profits. After all, we are in this business to make money and the risk is just a necessary aspect of that.
Trading currencies always involves two currencies, so when a trader plans to open a position both country's upcoming news should be taken into consideration. Other international news that can potentially affect the pair should be considered too. For example, if you decide to trade AUD/JPY, apart from valuating possible outcome of the news out of Japan and Australia and the effect that it might have on the pair, you should consider important upcoming news from Europe, USA or elsewhere because that news might give a shock to the financial markets. For example, if there was really good economic data released from China, the pair would rally because it means that demand for Australian products will most likely increase. The opposite would happen if there was really bad news from Europe; it would shock the global financial market and the traders would run for safe heavens like YEN and CHF.
Below are the most important economic data and news and their effect on the country's currency if the numbers beat expectations:
GDP   –> (+) Good
Unemployment Rate –> (+) Bad
Inflation (consumer and producer prices) –> (+) Good
Interest Rates –> (+) Good
Trade Balance –> (+) Good
Retail Sales –> (+) Good
Services and Manufacturing PMI –> (+) Good
Consumer and Business Sentiment –> (+) Good
Unemployment Claims –> (+) Bad
Home Sales –> (+) Good
Now that we've established the importance of understanding the news and the effect it might have on the price, we have to learn how to use news releases to our advantage. There are two ways to trade the news, long term and short term.

Long Term News Trading

When looking for long term trading opportunities based on economic news we should try to collect the previous and current data and analyze it to see the bigger picture and the effect that it might have on the currency. The long term trends are created by fundamental factors, which are many economic pieces over a certain period of time, because sometimes news needs days and months to be absorbed by the market.
Looking at the GBP/USD chart below we can see that an uptrend started to form a year ago and it has been a one way journey since. Similarly EUR/GBP has been in a downtrend for about the same period. But these things didn't just happen out of the blue. The economic data that came out of Britain during the past 2 years or even longer has made this possible. Most of it has been pointing out a recovery of the British economy way before the trend started to form. If a trader read and analyzed the data correctly, he/she would have bought the Pound during last summer and pocketed about 2,000 pips.
GBP/USD weekly chart demonstrates a year-long uptrend which could have been foreseen by analyzing the news out of UK.
EUR/GBP weekly chart similarly shows a downtrend that could have been foreseen by understanding and analyzing the news out of UK.
Sometimes the long term trends are created by a single news event, especially when that event is what the market is most sensitive to at that moment. Such was the case when the ECB announced it would expand the monetary policy, would cut Refi rates and introduce negative deposit rates. That meant that more Euros would be in the market and we know that when something is in excess it becomes cheaper. The market was waiting for that event for quite some time. We see from the chart below that Euro fell about 160 pips during that day and about 500 pips in total. It has formed a downtrend since then, breaking level after level with no technical being able to stop it.
Only a big news event can affect the market in such a way, the price breaks every support level lying in its way on its long way down.

Short Term News Trading

Trading news intraday is a bit harder because of the volatility and tighter stops. Usually 1-2 minutes before and after there are whipsaws, with price moving frantically in both directions. Short term news trading is split into several strategies which we will now go over:
Selling bad news spikes – One way is to sell the spike after a worse than expected news or vice versa. Sometimes even after really bad data the price jumps for a few seconds or minutes. That's the best time to sell, especially if it's at some big level or resistance. After the FED Chairman Yellen failed to deliver on the Tapper on June 18, which is dollar negative, USD/CAD jumped 30 pips to 1.09 only to reverse on a 150 pip fall.
Momentary peak follows news that should cause a downtrend, indicating the best time to go in short.
Buying after bad news – Because of past good data a pair forms an uptrend. Though sporadic, worse than expected news cannot be ruled out, it won't affect the overall outlook of the situation. So after the initial fall we should look to buy the knee jerk reaction. This happened to the USD/CHF on June 25 when the US GDP was much worse than expected. The pair had been in an uptrend for about two months with really good data, so one piece of news wouldn't change this by itself. The pair fell about 30 pips immediately, and then bounced right back.
Bad news don't always lead to a long downtrend, the fall can be momentary and then the price starts pushing up back to its previous level.
Trading breakouts – Prior to important news, the price often gets confined in a tight range, uncertain of which direction it should take. This scenario is best traded with pending orders on both sides, sell a break below and buy a brake above. It's advised that the orders be placed considerably away from the range, so that we avoid whipsaws. The chart below shows a good opportunity on USD/CAD on June 23 when retail sales and inflation CPI came out much better than expected.  
usdcad-m15.png
Price gets stuck in a range before the big news announcement and then suddenly jumps in one direction after the news is announced.
News anticipation – Anticipating the news and reading price action is not easy to do but like all things, it gets easier with experience. It's a very profitable strategy and personally I really prefer this strategy over the other ones. On May 1st at 8:30 am GMT there was manufacturing PMI to come. The market consensus was for a lower read but with the recent good data, chances were that the expectation would be exceeded.  Looking at the 15 min candle on GBP/USD right before the release, it jumped some 25 pips, which suggests that the data will beat expectations and so it was. So I bought during that jump and locked it at breakeven. Then the news came and the rest is history.
First candle jumped 25 pips, indicating that the news would be better than expected.
The same happened on April 16 with the GDP numbers. The 3 hourly candles prior to the release were really bullish, pointing to better than expected data. So I bought in the middle of the second candle and closed some profit in before the news release. After the news it popped another 60 pips.
Each candle is more bullish than the one before, great opportunity to make an easy profit.
Trading the news is actually not only another Forex trading strategy to add to your arsenal but another method of trading Forex altogether. In order to fully master Forex trading this must of course be combined with other Forex trading strategies that rely on technicals rather than fundamentals and you should place trades based on all of that data, factored together.





how to trade fundamental

  • Trading news is dangerous as wild and erratic price movements can extend against the trader
  • Traders need to be vigilant with risk management, looking to capitalize when on the right side of the move
  • We share three different types of strategies for trading during news
The big day is here, and the Non-Farm Payrolls report that much of the world has been waiting for will finally be unveiled tomorrow morning at 8:30AM in New York.
News announcements of this nature can take on a life of their own with the amount of interest they receive. But it’s important to note the danger and risks of trading on such events. Nobody in the world has any idea the way that NFP will print… and even if they did, there is no way of knowing exactly the way that the market will price that data.
What follows are three ways that traders can look to trade around high-importance news announcements like NFP.
But, before we get into the strategies, I’d like to stress the danger of trading in such environments. Many professionals choose to avoid trading during high-impact news announcements just because of how dangerous or erratic they can be.
If you’ve never traded during one of these events, or if you don’t feel comfortable taking on the extraneous risk that is inevitable with such a high-impact announcement, trade on the demo account or sit on the sidelines. There is absolutely no shame in having fear of a market; this is what helps keep traders alive. Bravado or machismo is absolutely worthless if you drain all of your equity. You can get a demo account completely free-of-charge at this LINK.
The ‘Slingshot’ Strategy
This strategy looks to capitalize on the mayhem that may ensue during an especially strong print. In this strategy, the trader wants to look to go into NFP with their full position(s), so that if the volatility created around the announcement may be able to push their trade deeply into profitable territory, they can look to take advantage of that.
The slingshot looks to scale out of winning positions as the trade moves in the trader’s favor, and a variety of entries or entry strategies can be used to trigger the initial position.
Support and resistance identification is a necessity before opening any positions. Traders can also take this a step further by looking to the hourly or four-hour charts to determine any trends that may exist leading into the announcement. This way, if the biases going into NFP take place after the data is released, the trader can be on the right side of the move.
Support and Resistance is so important because that’s the ‘cut point’ with which the trader can close off the position if prices are going to move too far against them. Stops for long positions can go below support, and stops for short positions can go above resistance so that if either of these levels are broken, the loss can minimized.
The Slingshot looks to capitalize from extended moves in the trader’s direction
Three_News_Strategies_body_Picture_3.png, 3 Strategies for Trading News (NFP)
Created with Marketscope/Trading Station II; prepared by James Stanley
Traders can even incorporate a technical-trigger into the trade with an indicator like MACD like we had explained in the article, MACD as an Entry Trigger.
A key note here: Traders are advised to investigate stop distance on their positions ahead of a data announcement as heavy as NFP. Spreads can widen very quickly as market makers don’t want to take a loss on the print just as much as retail traders. When spreads widen, stops can be triggered before prices begin trending and this can be disastrous for the trader.
Imagine the scenario in which you went into NFP with a long EURUSD position carrying a 20 pip stop… If spreads widen out to 40 pips, that would trigger your stop and execute the stop order ‘at best.’ This could entail additional slippage beyond your 20 pip stop.
But, if prices then trend up 150 pips on the EURUSD you have no position remaining even though you were right in the long position.
Unfortunately, it’s impossible to know how widely spreads might spike during any given news release, NFP especially. Traders generally want to investigate a minimum stop distance of 40 pips or more, and even then quick volatility may make the position vulnerable.
This is but another reason that trading in news environments is so dangerous; but the potential rewards could be huge if the trader can find themselves on the right side of the position, and that’s what the slingshot is all about.
If the trader is able to navigate this terrain without getting a stop hit, that’s where the slingshot comes in as traders can scale out of profitable positions as prices may surge in their favor.
The News Reversal
Trading reversals is inherently dangerous in a normal environment; but when adding in the additional risk around news announcements, it can make this type of strategy very dangerous.
Strong money and risk management is a requirement for success in these environments, because you’ll never be sure of which reversals may follow-thru.
Like the Slingshot strategy, traders want to go into the release with support and resistance levels identified. Then they wait for the news.
In the immediate period following the news announcement, the trader can watch prices to see if those longer-term support or resistance levels come into play. And if they do, the trader watches to try to get an idea as to whether or not those levels are going to hold.
The News Reversal
Three_News_Strategies_body_Picture_2.png, 3 Strategies for Trading News (NFP)
Created with Marketscope/Trading Station II; prepared by James Stanley
Price action can be of huge help here. Traders want to see support coming in to the market at these longer-term levels before triggering a long position with a stop below support. The key here is fitting in tightly so that if the reversal doesn’t play out, the position is taken out quickly. But if that support level does hold, the trader can begin scaling out once the position starts moving in their favor in an effort to capture as much upside as possible.
The ‘Use the News’ Long-Term Strategy
Non-Farm Payrolls can be a game changer. A big beat or miss can stop a trend dead in its tracks and create massive reversals.
But this doesn’t happen every month. In many cases, enormous volatility is created around the announcement with perhaps some slight follow-through thereafter; only to see trends resuming their previous trajectory.
This can potentially be a huge opportunity for longer-term traders to pick up or add positions at a much more favorable price than they would have otherwise been able to. Let’s look at an example for more clarity.
Let’s say that Joe is bearish on the EURUSD for whatever reason. Perhaps he’s just a really big USD bull, or maybe he’s a non-believer in the European Recovery. Whatever the reason, Joe knows he wants to get short EURUSD.
But after spending a month confined to a meager range near long-term support, Joe hasn’t had a compelling entry opportunity in the pair.
Joe can go into NFP looking to do some bargain-hunting. He can look at his longer-term chart to establish some resistance levels in which he’d like to sell if prices can make their way up there.
The next step in the process is to wait for the news to come out to see if prices can move up into this resistance zone so that Joe can enact an order.
The ‘Use the News’ Long-Term Approach
Three_News_Strategies_body_Picture_1.png, 3 Strategies for Trading News (NFP)
Created with Marketscope/Trading Station II; prepared by James Stanley
Once price moves into resistance, Joe can begin looking to sell with a stop above the resistance zone. Traders can look at a shorter-term chart to look for price action indications of bullish or bearish reversal patterns to increase the potential effectiveness of the strategy.
--- Written by James Stanley
James is available on Twitter @JStanleyFX
To join James Stanley’s distribution list, please click here.
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06 March 2014 20:00 GMT

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