Expiration of binary options
When starting to get acquainted with binary options, it is important to understand how they work, what affects your profitability while working in the market. As you know, binary options - is a type of exchange contract in which a trader receives his profit due to the dynamics of the price of the asset (commodity, stock, currency, cryptocurrency, etc.) in which he invests funds. At the moment of purchase or sale of the asset, the trader makes a prediction as to how its value indicator will change. This financial instrument has a number of features: it has a fixed value, the exact amount of potential income, a specific expiry time of the contract, i.e. its duration. Today you will get acquainted in details with this key concept of binary trading that directly influences the success of your work on the market.
- 1. Types of expirations in binary options
- 2. How to choose a good time for yourself?
- 3. Choosing a broker with the right expiry time
- 4. Strategies with different expiry times
- 5. Examples of real strategies
- 5.1. Strategies with an expiration time of 60 seconds
- 5.2. Strategies with an expiration time of 5 minutes
- 5.3. Strategies with an expiration time of 15 minutes
- 5.4. Strategies with an expiration time of 30 minutes
- 5.5. Trading on the news
- 5.6. Trading with expiration dates starting from 24 hours
- 6. Conclusion
- 7. Reviews
So what is an "expiration" in binary options?
Expiration is the term of the contract, at the end of which the trader will know the result of his prediction. After the expiry, the trader understands in what direction the value of the asset has changed: up or down and, accordingly, he will know whether he will make a profit or loss. From the definition of binary options, which we stated above in our text, it is clear that the very essence of the options involves the expiration, the expiration date of the contract.
In contrast to the expiration time, which is the time period of the bet, the expiration time is a precise indicator that determines when the option expires, that is, how long the market player will wait for the result of the trade.
The expiry time on binary options is the exact number at the end of which the trader will know the result of his prediction, such as 60 seconds, 5 minutes, etc. That is, if a binary option was bought by a trader at 4:50.35 and an expiration time of 5 minutes is specified, then the expiration time is 4:55.40. Exactly at 4:55.40, exactly 5 minutes later, you will know the result of your prediction.
It is not enough to be a successful trader if you have chosen only a reliable broker, if you are confident in your abilities, if you know the trading terminal very well. Being aware of the concept of expirations is also half the success in trading. Choosing a specific expiry date and making an incorrect assumption about the dynamics of the asset, the trader will lose money.
Types of expirations in binary options
Trading binary optionsThe trader can use different strategies, tools, including different expiry times. Usually he chooses the duration of the option, based on those options, which are offered to him in the terminal of the broker, as each broker of binary options has its own options of expiration, although in most cases, their set is repeated. How do I choose the right expiry time for my binary option? What is the best expiry time on binary options? Let's talk about that in this article.
The following classification of expiry dates is generally valid on the trading market:
Options 60 Seconds
60 seconds is a short-term type of expiration, indicating that when forming a deal, after 60 seconds the trader will know the result of his prediction: up or down the price dynamics of the asset, it will bring him profit or, conversely, loss.
Such ultra-fast trading is commonly referred to as express option trading or turbo option trading. Expiration in 60 seconds is very popular with traders today, especially with beginners, because it offers them a number of advantages: it allows making an unlimited number of transactions during the trading session, and therefore can bring an unlimited amount of income with a minimum waiting for the completion of the transaction. Besides, the profit percentage, given by the broker for such options, is usually much higher, than for other expirations. At the same time, earnings on the account are instant, that is, in 60 seconds the deposit will be replenished with money in case of a positive outcome of the transaction.
Most newcomers to options choose this expiration time because it is fast and guessing the dynamics of the asset through this time interval does not seem to be that difficult. Of course, it is also popular with those traders who like the feeling of risk and excitement. However, there are also negative aspects the trader must keep in mind: high risks of losing money and high probability of being in the red, unpredictable trading results, presence of market "noises" preventing from making exact decisions concerning the asset dynamics, limitedness of market analysis since it is almost impossible to use the data of technical analysis of asset dynamics. This expiry is actively used in different strategies, for example, in scalping - the fastest type of trading, when the trader trades intensively, making the maximum number of transactions during the trading session.
Options from 5 to 30 minutes
These options are also common in the market, referring to high-speed intraday trading. The trader, by opening a deal and specifying an expiry time between 5 and 30 minutes will know the result of his forecast after 5, 15 or 30 minutes, for example. These are also intraday options, which make the trading intensive, but they have some differences from the 60 second contracts. In contrast to the previous type of options, with this expiry time the trader has a number of possibilities: it is a more stable trading, which allows him to learn indicator data, take advantage of the strategies, graphical elements, observe the history of the asset dynamics, which, of course, will have a positive effect on the trading result. These options are popular with more professional traders who know how to use the tools correctly, do market analysis, and consciously trade in the financial markets.
Profits here are also attractive, during the trading session here you can make an unlimited number of transactions, which will lead, in case of correct prediction of the market, to a decent result. Among the other advantages of these options: high profitability, high percentage of profit, minimum amount of investments. It is also worth to remember about the disadvantages of such trading: higher risks, the presence of market "noises", the need to use strategies very quickly, to be able to analyze the market, work with indicators and make the right conclusions.
Options from 1 hour to 24 hours
When trading such options, the trader will know the result of the transaction in 1, 2, 5 hours and 24 hours. Such an expiry period implies a more relaxed trading and options are called medium-term options.
Less intensive trading is popular with professional traders who know how to consciously work with the basic tools of the terminal: indicators, strategies, etc. Here it is no longer possible to make an unlimited number of transactions during the session, the work is more calm and measured, so it suits those traders who prefer not to risk their money, think seriously about their decisions, quietly study the dynamics of the asset, use signals from indicators and various strategies.
In addition to technical analysis, you can work with fundamental analysis, study the news background, market sentiment. Gathering all the data, it is possible to make a correct prediction about the dynamics of the asset and get a high profit. Such options are often called the best, balanced solution for the trader, because the risks of losing money are reduced many times, there is no need to open an unlimited number of deals to get a decent income. In addition, calm trading will allow to reach the stable earnings, will be a reliable source of permanent income. However, these options also have their disadvantages: the need for long waiting for the end of the transaction, for long-term trading requires a large balance in the account (as some platforms have commissions when trading at night) and free money, which the trader will not need in the near future, they will not suit those traders who like the feeling of excitement, who are impatient waiting for the results of trading, knowledge of the fundamental and technical market analysis is required here.
Options from one day to one year
By trading such options, the trader will know the result of his prediction of the market dynamics in 24 hours, a month, six months or a year. These options are called long-term options and they have a number of features. Firstly, not all brokers offer the possibility of long-term trading, less popular among traders, focused on professionals and experienced investors.
Of course, brokers offering such long trading thereby support professional traders, for whom binary options trading is the main source of making money. Secondly, such trading presupposes the presence of experience, serious training of the investor, extensive knowledge in the field of technical and fundamental market analysis. In addition, on the balance of the trader must be more funds, which will allow to wait long enough for the result of forecast, rather than when trading, for example, high-speed five-minute options.
Among the advantages of such options: minimizing the risk of loss, they can be a source of stable profits, they are easier to predict because there are more options and possibilities to study the dynamics of assets, they will be the ideal solution for those calculating and experienced traders who care about the thought-out actions and getting a permanent income from the market, etc. Of course, such options, as well as mid-term options, can also be recommended to beginners in the market in order to improve their experience.
Long-term trading also has a number of negative aspects. It's a long waiting period for expiry time and trading results, the need to invest a lot of money. Besides, they are inconvenient for those traders who need immediate income in the nearest future, for those who like the sense of risk, prefer high-speed trading, etc.
How to choose a good time for yourself?
As we wrote above, a conscious attitude to the choice of expiry time is one of the factors of successful trading. Choosing the right expiry time will allow you to adjust your work mode, use the whole range of opportunities to make a decision on the dynamics of the asset, etc. What a trader should pay attention to when choosing a comfortable expiry time for binary options:
- On the availability of free time for trading. If the trader has little time to immerse himself in the market, let us say he has his main job and there is no possibility for extended analysis of the situation, then the high-speed options will suit him. If, on the contrary, the investor is planning to devote most of his time to trading and sees it as the main source of income, then there is an important complex approach: he has to devote time to the detailed study of market fundamentals, testing of strategies, finding his own trading system, trading options with different duration, but preferably the options, which will guarantee a stable income: mid-term, long-term.
- Availability of trading experience. If the trader has little experience in trading, it is recommended to pay attention to training and work on a demo account. Nowadays, most traders start investing in the market with speed trading, since the result on the trades becomes known within a minute. It is not as scary as if the trader invested in, say, an hour or a week long options. Trading professionals pay attention to long options because it gives them more profit, reduces the risk of loss.
- To use a certain strategy in your work. Finding and choosing the right strategy is an important aspect of a successful trader's activity. Each strategy, apart from the set of instruments, has an expiry time that will allow making the most out of trading. The same refers to methods of market analysis. If a trader has free time to work, it is possible to use technical analysis of the market and study the data of indicators. Often indicators need to be adjusted, tested, new ones need to be uploaded oscillators in MT4, is also time, which is important to consider in the work. It is also worth to spend time studying not only the indicators, but also the fundamental analysis, which will require much more time, but can improve the performance. Closely following the news background, you can benefit: for example, knowing the result of the asset dynamics 15 minutes before the news release, placing an option for half an hour, you can earn on a correctly placed forecast. In case a player has no time at all, scalping strategies will do, which have a simple principle of operation and allow intensive trading. Having chosen one or another trading system, tested it and realized that it works and brings income, the investor begins to work with it, submitting everything to it: his work schedule, capital, etc.
- On whether or not a trader likes and is willing to risk money. Some traders choose high-speed options because they feel excitement and like to take risks. Such players will not like waiting a long time for the result of a deal, in this case they can be disappointed in binary trading at all. But if the investor is reasonable and prefers to study the asset history in details, analyze the market and make conclusions having compared the facts, then he is more comfortable working with mid-term and long-term options.
- On how soon the trader will need to earn money. With long-term investments the profit, and if there is one, will appear, for example, in a month, six months. The advantage of express options is that it is possible to earn money in a minute or 30 seconds. Turbotrading will allow you to make an unlimited number of transactions within an hour and withdraw money from the broker's platform in the near future.
- On whether the trader has enough free money, which he is ready to invest in trading and which he will not need in the near future. So, if he has a large amount of money which he does not need at the moment, he can profitably invest it in the long-term binary options and get a profit in 6 months or a year, for example. If he does not have extra money, he works with short and medium term options in order to increase his capital and withdraw it in the nearest future.
Choosing a broker with the right expiry time
Everyone has Binary options broker their own set of expiry options are available. While some of them try to provide opportunities for using any strategies and trading styles, others, for example, focus on more popular ways of trading - fast and medium term. It is important to choose not only a reliable broker, but also a platform which allows the client to trade in the mode he is comfortable with. In this part of the article let's see what types of expirations are offered by market brokers.
One of the leaders of the Russian trading market, INTRADE.BAR (detailed review and reviews), offers a choice of expirations from 60 seconds to 1 hour, so its platform concentrates a lot of beginners of options and those traders who prefer to make money with scalping or other high-speed trading strategies. Here, the maximum possible expiry time is 1 hour, which gives the company's clients the opportunity to trade mid-term options, on which they will profit at the end of 1 hour. We can say that this will be a comfortable solution for beginners in the market, who do not want to stop there and are interested in increasing their professionalism. Of course, it is more difficult to work here for experienced investors who prefer to earn on long-term investments, opening contracts of a week, a month or a year.
At the broker Olimp Trade (detailed review and reviews), also popular among Russian traders, offers a wider range of expirations: from 60 seconds up to 24 hours (if you use the terminal's option to set your own expirations). Intraday traders who earn on intensive options trading also find it more convenient to work here. Thanks to the favorable conditions of work, simple terminal, minimum deposit amount The broker is interesting to the beginners of the market. It will allow them to successfully start their trading and expand their capabilities, trying themselves not only in high-speed options, but also in trading medium- and long-term contracts (day). With 26 indicators in the platform, it is possible to make a complex analysis of the market and trade for short distances. Undoubtedly, it is more profitable and interesting to work here for market players, however, for those investors who prefer to earn on options which are weekly, monthly or half a year long, these possibilities will not be enough.
In contrast, at Finmax, a popular broker on the market, it is possible to trade options of very different durations: from 30 seconds to six months, which attracts traders with different experience. Some investors prefer to trade turbo options as it offers to get their first return in as little as 30 seconds. Also available are medium-term options (from 1 hour to 24 hours), great opportunities for long-term investments (1 month, 2 months, etc. up to 6 months). The broker made sure that trading on his platform was available to risk aficionados as well as to those who liked the measured work style, the possibility to think over the situation on the market, study the data of the terminal indicators, make a full-scale fundamental analysis of the market etc.
Depending on the type of asset, different expiry times are offered here. For example, investing in the currency pairs EUR/GBP, GBP/JPY, AUD/CAD, etc., you can open long-term contracts up to six months. Those who is interested in cryptocurrencyFor example, BITCOIN, RIPPLE, LITECOIN, expirations from 15 minutes to 1 hour are available, so you can trade turbo options, as well as make profit from medium-term contracts. Investors in shares of Citigroup, Goldman Sachs or SNAPCHAT can take medium-term contracts, while investors in Facebook shares allow trading on the long term.
A variety of options are also available at Binarium brokerThe trading platform offers short-term deals from 60 seconds, mid-term and long-term deals (from 1 day, month and up to half a year), which increases the interest of traders who prefer to trade by different strategies. One more leading broker also offers interesting opportunities. Binary.comThe platform can be used to trade contracts from 10 seconds up to 365 days.
Trading short-term options is available at almost all brokers of the market, but not all of them offer long-term investment opportunities, so some investors, for whom trading options is the main source of income, cooperate with the brokers Binary.com, Binarium, etc.
Strategies with different expiry times
In order for trading to be effective, it is important to trade thoughtfully, using productive trading strategies. There are many strategies on the market, which have a lot of differences, but first of all, it is important to realize what kind of expirations a particular trading system uses. In this part of the article, we will talk about the types of strategies by expirations.
Click the button and explore over 350 strategies on our blog that we've been publishing since 2015.
Strategies with an expiration time of 60 seconds
Such strategies are used when trading some of the riskiest options - 60 second options. During the high-speed trading fast reaction to the change of the trend, the ability to make instant decisions is important, so it is not recommended for beginners in the market. And yet today it is one of the main ways of trading, because it involves earning as early as 60 seconds, higher payouts, and unlimited earnings due to the fact that many trades can be opened during one session. Such strategies are based on the work of simple indicators, for example, RSI, Bollinger Bands, Ishimoku, Moving Average, which are able to demonstrate market trends in advance, show accurate signals. Also a number of strategies use graphical figures to analyze the dynamics of the asset. There are also separate trading techniques such as hedging, Martingale, trading by support/resistance levelswhich will also bring the trader a significant income. Almost every broker on the market provides such trading. Among the negative aspects of trading with such strategies: it is worth remembering about the high riskiness of turbo options, the need to practice the strategy on a demo account, the complexity of market analysis, the speed of reaction of the player. Read more about 60 second strategies.
Strategies with an expiration time of 5 minutes
Such strategies are used for trading short-term options of 5 minutes, which can be rightly considered the "golden mean" for the trader, who needs to minimize risks of loss, have time to analyze the market, open a deal and get a decent income for an unlimited number of transactions during the trading session. Of course, such express-trading is risky, however, in contrast to the 60 second options, there are more opportunities for earning a decent income: a trader will have time to analyze the market dynamics, work with the indicators and graphical elements and make correct forecasts about the asset movement. At the same time the investor will not be able to use the fundamental analysis of the market because it requires more time and experience. Such strategies are popular among traders as they take into consideration the peculiarities of trading express options, help to quickly draw conclusions about the market dynamics by opening more than one deal during the trading session. On the one hand, it may seem that there is no need to prepare for such trading, but it is not so. It is important to take the time to find and work out the strategy by which the investor plans to trade. Only with the right approach to trading, such trading systems will lead the trader to high returns. Read more about 5 Minute Strategies.
Strategies with an expiration time of 10 minutes
Such strategies will allow you to work most effectively with 10-minute options, taking advantage of their features correctly. These are, of course, high-speed trading, which is characterized by the presence of risk of loss. Options with a duration of 10 minutes are more suitable for market beginners who are not advised to trade turbo options. Expiration from 6 hours on binary options is still more comfortable, it will allow in a quiet atmosphere to study the signals of instruments and get earnings from several transactions during the trading session.
Expiration in 10 minutes will allow enjoying a number of advantages of speed trading: one can make unlimited number of deals, the trader's nervous tension is reduced, it is possible to use different instruments, such as indicators (Bollinger Waves, MA, etc.). Of course, such strategies are not difficult to work, use simple market analysis technique, generate accurate signals to enter the market.
Strategies with an expiration time of 15 minutes
Such strategies will allow you to trade 15 minute options effectively, taking advantage of all their advantages. Such intraday trading is intensive, however, in contrast to express options of 60 seconds, here all the same, more calm and stable work rhythm, which will allow to forecast the market precisely, take into account a number of factors and get a significant profit. To make a decision regarding the dynamics of the assets a trader can use both technical and fundamental market analysis data, add indicators and graphical elements to the chart and trade according to a strategy aimed at dealing precisely with such options. Such options are popular among the traders, they allow to earn money for those investors who do not have much time for full work on the market, they are in a certain sense a "balance" between the possibilities of express options and the need to spend time on market analysis and earn a decent income from trading. It is worth remembering that market professionals do not advise trading after 3 trades to get a decent income with such strategies. Such strategies are usually simple and easy, they do not require complex manipulations from the player. If you work with them correctly, you can get a decent income from the market. Read more about 15 minute strategies.
Strategies with an expiration time of 30 minutes
Such strategies involve the competent trading of 30 minute options, using all their features. These options are perfect for traders who do not have a lot of time to analyze the market and make trades. They will be a perfect solution for beginners as well, when they learn to work with different tools of market analysis: indicators, technical and fundamental market analysis data, offer the trader a calm work pace, getting a decent income. These strategies are based on the use of various indicators: e.g, MACD, RSI, Momentum, Stochastic, Moving Averages, Chaikin Oscillator, Bollinger Bands, Alligator etc. It is also possible to work with graphical elements, patterns (for example, search for signals by "Absorption", "Hammer", "Hanged Man"). Read more about 30 minute strategies.
Of course, such trading is notorious for risks, the presence of market "noise", which must be kept in mind, but, unlike 60-second options, there is not so much urgency in making decisions, there is no need to conduct a lot of transactions in order to reach the desired profitability, offers more opportunities to assess the situation, accurate forecasting the dynamics of assets. Also, unlike turbo options, you will not be able to conclude a large number of contracts during the trading session, it is recommended to open up to three transactions. Moderate trading allows learning to analyze the market, reacting in time to changes in trends and earning on it. If you start trading with one of such strategies, you can easily reach the stable profitability, learn how to work with basic trading tools.
Examples of real strategies
Strategies with an expiration time of 60 seconds
In such high-speed trading, as work with turbo options, simple strategies are used, which will allow to make an instant decision on the dynamics of the asset, aimed at ensuring that during the session the trader has made more than one deal and made a profit. Strategies using indicator signals are simple trading systems which do not have a complicated principle of work and actively use that very toolkit which is in the trader's arsenal. In addition, strategies that do not use indicator signals are also acceptable, the dynamics of the market is studied with the help of graphic elements.
Strategies using indicators
- RSI (Relative Strength Index) indicator (more about strategy)
This indicator will be ideal in such high-speed strategies, because it is easy to set up, it is available in almost all broker terminals, as it is the basic technical indicator, it is ahead of the signals and shows the change of the trend in advance, which will help the trader to see the signal and make a prediction about the dynamics of the asset. It is also easy to work with and even a novice market player can manage to find signals. This tool has overbought and oversold areas, which can be used to visualize the market situation and thus make a profit: if the indicator line leaves the oversold area from the bottom upwards we can buy call options, and if it leaves the overbought area we can buy put options.
- Indicator Ishimoku (more about strategy)
Another great tool, perfect for trading express options, is often compared to clouds, which show key areas on the chart: resistance and support. Using the signals of these areas, you can also invest in options and make a profit: so, if the price line left the cloud twice in the top-down direction, you can buy PUT options, and if the line left the cloud in the bottom-up direction, you can buy KOLL options.
- Bollinger Bands (more about strategy)
The indicator is simple and easy to use, and its signals are also easy to identify. It also has the advantage of showing a break in the price movement. This can be used in a "Trade on Breakdown" strategy: when the price line breaks through the boundaries of the indicator channel, the price will roll back to the middle. Trades should be opened at the convergence of the bands (sideways trend).
Strategies without indicators
- Trading on the trend line (more about strategy)
This strategy does not use indicators. To start working it is enough to draw on the chart trend line and when it rebounds three times, you can start trading. You can also add a trend line at the bottom of the chart, this is the "Wedge" pattern. After the wedge is finally formed (3 waves) and the curve has broken the upper or lower trend line, you can open trades to purchase options.
- Hedging (insurance) strategy
A very popular strategy actively used by traders. Its essence is that an additional "safety" option is purchased in order to minimize possible losses from the purchase of the first option. However, this system is more suitable for working in the forex market, because in binary options, the value chart for a minute can fluctuate sharply, which will bring losses on both trades.
- A strategy using support/resistance levels (more about strategy)
The use of such levels, within which the price chart moves, can help the trader in his work. Levels give accurate signals about price dynamics. They should be placed on the tops of candles, on a rebound from the level and only on the third candle (because the first candle is a signal, the second - confirmation of the signal, the third - purchase) you can buy the option COLL.
- Cryptocurrency trading strategy by Stochastics (more about strategy)
Stochastic is a basic tool of market analysis, which is also simple and clear for traders, is able to accurately show the strength of the trend, which allows you to make predictions about the dynamics of assets based on the likely reversal of the value at a certain point in time. It performs well with different expirations and can be used to trade a variety of assets, including cryptocurrency investments. Like the RSI, it has overbought and oversold zones, which is the basis of this strategy: when the two lines cross below 20, you can buy a Call Option; when the lines cross above 80, you can buy a Put Option.) Also this indicator signals by the position of muvings in relation to each other: a long interval will indicate a high volatility, a small - the decrease of activity on the market.
Strategies with an expiration time of 5 minutes
There are a lot of such strategies on the market and among them you can choose the trading method, which is more comfortable for the trader and allows to get the most out of the market.
- The "Waves" strategy (more about strategy)
This strategy uses signals from two indicators: the Moving Average and the wave analysis tool from the developer LazyBear. Skillful combination of these tools will allow to work with the data, which passed double filtering. It is worth recalling the basics of the wave theory of price formation, which explains many phenomena on the market. According to the theory, the market is a continuous process where the processes of ebb and flow, fall and rise of price alternate. The trader's task here is to be able to see these waves and make correct forecasts.
The strategy uses indicators that can be easily found in the service TradingView: Smoothed Moving Average, WaveTrend with Crosses. After adding them to the chart, you can start trading. In this case, you should enter the trade after the lines of WaveTrend with Crosses. The signal for the purchase of a Call option is as follows: a point on the chart below the "-25" level, manually added to the pattern; penetration of the rising MA candle in the direction from below. The signal for buying a PUT option will be as follows: formation of a point above the "25" level, penetration of the MA of the descending candlestick.
- The strategy of contracts for 5 minutes "Soffit" (more about strategy)
This is a simple and effective strategy, which will bring up to 86% productive positions to the trader, will be convenient for the novice player of the market. It uses reliable tools that will easily achieve the desired profit: Smoothed Heiken Ashi Candles, DMI ADX Trend 2.0, MACD indicator, which acts as a filter for false signals. The work will take place in the TradingView service.
To buy options KOLL need to wait for the following picture on the market: Smoothed Heiken Ashi Candles form green candles, price quotes candles are above the indicators of this tool; DMI line ADX Trend 2.0 blue crossed the lilac muving in the upward direction, the trend line turned to growth, changing color to green; MACD formed a signal in the form of crossing its lines with an upward trend.
To buy PUT options, you need to wait until the market picture: Smoothed Heiken Ashi Candles should form a red candle, with price candles quotes below the indicators of this tool; DMI line ADX Trend 2.0 blue crossed the lilac muving in the down direction, the trend line turned to growth, changing color to red; MACD signal formed in the form of crossing its lines with a downward trend.
- Strategy for Binomo for 5 minutes "Mystery" (more about strategy)
This strategy takes into account all the features of the 5-minute expiration, uses indicators that will increase the profitability of transactions to 87%, it is simple and straightforward, it will allow the trader to open contracts in a timely manner. Its peculiarity is the use of oscillator data, which determines the dynamics of the asset, as well as trend indicators, generating indicators of trend development. It is better to work on the strategy in the "Live Chart" service, which offers an impressive set of tools for market analysis, according to this methodology in the work will need such indicators: VWMA, Chaikin Money Flow, Price Oscillator.
In order to buy a call option, you must wait for the following combination of instruments to appear on the chart: Price Oscillator forms an uptrend, the Chaikin Money Flow indicator has crossed the axis level of the scale in the upward direction, the price has broken the VWMA in the upward direction. In order to buy a PUT option, you must wait for the following combination of instruments on the chart: after the reversal of Price Oscillator shows a downward trend, Chaikin Money Flow crossed the axial level of the scale in the down direction, the price broke through the VWMA in the downward direction.
- A simple trading system for 5 minutes "Cotton" (more about strategy)
This trading methodology is based on atypical indicators, but it allows it to bring at least 80% profitable trades. For work it is worth to use the service "Live Graphics.". We will need to add oscillators to the chart, which accurately determine the strength and dynamics of the market, trend reversal points: FireFly Oscillator and UCS_Murreys Math Oscillator_V2. These indicators will provide high-precision signals for high-quality work. There is nothing complicated in the trading process, you only need to identify the trading signal and quickly transfer it to the quotes chart.
To purchase KOLL options, you must wait for a pattern on the chart where the oscillator histograms move above the centerline and the price candlesticks are green. To purchase PUT options, you must wait for the following picture on the chart: the oscillator histograms will move below the centerline and the price candles will be red.
- Scalping strategy with contracts for 5 minutes "Crossing" (more about strategy)
An excellent strategy that allows you to accurately and quickly respond to minimal price reversals. The tools used here allow you to clearly track the trend fluctuations in the dynamics of the asset, as well as their corrective pullbacks in a narrow time range. This opens unique opportunities to execute a large number of contracts and make profit.
We use non-standard indicators, which can be found in the live chart service tradingview.com: COG Double Channel and Wave Trend with Crosses. To buy a KOLL option, wait for the following signals on the chart: the quotes touched or went into the green zone of the COG Double Channel indicator for a short period, then made a U-turn, forming a correction or a new trend; Wave Trend with Crosses formed a cross and divergence of lines in the up direction, the histogram sine wave is above the zero level.
To buy a PUT option, expect the following signals on the chart: the quotes touched or went into the red zone of the COG Double Channel indicator for a short period, then made a U-turn by forming a correction or a new trend; Wave Trend with Crosses formed a cross and divergence of lines in the down direction, the histogram sinusoid fell below zero level.
- The strategy of options 5 minutes "Topping" (more about strategy)
Indicator strategy based on signals from highly accurate technical analysis tools gives stable results at 86% level of profitable contracts. All instruments used for work are basic. They are present at most brokers: Bollinger Bands, MA, MACD. These indicators will make it possible to evaluate a large technical range of market indicators and increase the effectiveness of the strategy.
To purchase call options, you must wait for the following picture to appear in the market: the WMA lines, following the quotes of the asset, crossed the Bollinger Bands mean moving average upward, the MACD had a break up the median scale with the oscillator lines. To buy PUT options, wait until the following situation appears in the market: the WMA lines, following the quotes of the asset, crossed the Bollinger Bands mean moving average downwards, the MACD has broken down the median of the scale by the oscillator lines.
- Trading system binary options 5 minutes "Brook" (more about strategy)
This strategy will produce up to 88% profitable trading contracts, which makes it an effective system. The system is universal, it is easy to work here, the generation techniques will be understandable to any investor. The following indicators will be needed: Triangular MA 75/85, Exponential MA 25/35 and MACD. To buy KOLL options, the following market signals are used: the EMA lines have broken the TMA levels in the up direction; the MACD muwings move above the median of the scale. To buy PUT options, the following market signals should be used: the EMA lines have broken the TMA indicator levels downward; the MACD oscillator lines move below the level of the scale median.
- The strategy for options 5 minutes "Rolling" (more about strategy)
Indicator strategy with a high level of signal efficiency, allowing up to 100% of capital gain. The following tools are used in the work: Alligator, RSI and MACD indicator.
To execute an upward contract it is necessary to wait for the following signals on the chart: the RSI line shows a steady upward trend, the MACD has crossed the axis level of the scale in the upward direction, the Alligator muvings of red and blue colors have broken the green line upwards. To execute the contract to DOWN it is necessary to wait for the following picture on the chart: the RSI line shows a stable downward trend, the MACD has crossed the axis level of the scale in the downward direction, the Alligator's moving averages of red and blue colors have broken the green line down.
- "RS Fractals" - an accurate strategy of 5 minutes (more about strategy)
This is a versatile and simple strategy for making quick money on binary options, which will work fine both in a trend and in a sideways market movement. Its signals will allow you to close trades with a profit of 85% of profit. It uses the "arrow" tool RS Fractals V5, as well as the Relative Strength Index. To purchase options KOLL it is necessary to wait for the appearance of the following indicator signals on the chart: on the basis of the trend there is a green arrow, located in an upward direction below the quotation of the asset, the RSI line is under the oversold mark, the entry into the transaction is made at the end of the candle. To purchase PUT options, it is necessary to wait for the following indicator signals on the chart: on the basis of the trend, a red arrow appears, located downward above the asset quotation, the RSI line is above the overbought mark, the option can be purchased at the end of the candle.
- The strategy of options 5 minutes "Aisle" (more about strategy)
This effective trading system will allow you to get a stable profit. It uses a special tool whose task is to automatically calculate and build regression channels - fork. It defines the limits of price fluctuations, taking into account the average values of the underlying assets. The MACD indicator is used to filter signals, which increases the effectiveness of this trading system.
The following indicator signals are used to purchase KOLL options: the price line reached the lower or middle level of the regression channel and turned from it, the oscillator lines on the MACD turned upwards. To purchase PUT options the following instrument signals are used: the price line reached the upper or middle level of the regression channel and unfolded from it, the oscillator lines on the MACD unfolded downwards.
- "Feeder" - binary options strategy 5 minutes (more about strategy)
Another effective indicator trading technique, which generates highly accurate trading signals. You will need a "Live Chart" because it uses non-standard indicators: The Lark Laguerre RSI, McGinley Dynamic and Squeeze Momentum Indicator.
To buy DOWN options, you must wait for the following signals on the chart: the McGinley Dynamic line has broken downward; the Squeeze Momentum Indicator line will turn red and begin to build below the zero level; the Lark Laguerre RSI muving will break through the overbought level in the down direction.
To buy options UP, you must wait for the following signals on the chart: the price broke through the McGinley Dynamic indicator in the up direction, the Squeeze Momentum Indicator histogram turned green, began to build above the zero level, the line The Lark Laguerre RSI broke through the oversold level in the up direction.
- Binary options strategy 5 minutes "Triplex" (more about strategy)
It is a simple and highly accurate trading system that generates profitable signals for successful trading. It is based on a skilful combination of the MACD indicator, which in different formats of settings shows signals of the emergence of trends, allows you to execute contracts in favorable conditions for the trader.
To get started you need to add three MACD indicators with different periods to the chart: 12/26/9, 24/52/9 and 50/100/9.
Next, you can get to work. To place an Up Option, wait for the following pattern on the chart: three MACD's will form a reversal pattern as the oscillator lines cross upwards, with the histogram rising above 0. To place an Option Down, wait for the following pattern on the chart: three MACD's will form a reversal pattern as the oscillator lines cross downwards, with the histogram simultaneously falling below 0.
Strategies with an expiration time of 15 minutes
These strategies aim to get the most out of trading with such an expiry, are simple and effective methods of operation. It is not for nothing that this timeframe is recommended for beginners in the market to trade.
- The system of trading for 15 minutes "Deduction" (more about strategy)
This strategy is a simple and effective technique for working with 15-minute options. Non-standard indicators are used here, so it is worth building a pattern in the Live Chart service: Trend Trader Strategy,THEME 1 and Premier Stochastic Oscillator.
In order to open a position on the price increase, you should wait for the following signals on the chart: the upward crossover of the line TEMA 1 (red) of the level of the Trend Trader Strategy (blue) has occurred, the Premier Stochastic Oscillator line has crossed with the ascending dynamics of the scale level. To open a position on the price decrease, you should wait until the following signals appear on the chart: the downward crossover of the line TEAM 1 (red) level of the Trend Trader Strategy (blue) occurred, the Premier Stochastic Oscillator line crossed with the descending dynamics of the scale level.
- The system of trading for 15 minutes "Deviation" (more about strategy)
This is a strategy of highly effective trading, which will bring the user up to 87% profitable contracts. Non-standard tools are used in the work, so it is worth to build a template system in the service tradingview.com: CM Guppy indicator EMA, MACD 4c and Detrended Price Oscillator.
The following instrument signals are used to buy KOLL options: Detrended Price Oscillator forms a stable trend directed upward; CM Guppy EMA with a short construction period crossed the bundle of lines with a medium-term range upwards (this is a powerful signal of trend reversal to growth); MACD 4c formed the final signal to form a bet as the line rises above the 0 level.
To buy PUT options the following signals of the system tools are used: the Detrended Price Oscillator forms a stable trend directed downward, the trend CM Guppy EMA with a short construction period crosses the bundle of lines with a medium-term market assessment range (this is a powerful signal for the reversal of the price dynamics to the downward trend), MACD 4c formed the final signal for placing a deal as the histogram falls below the 0 mark.
- The strategy of options for 15 minutes "Purse" (more about strategy)
This is a workable and versatile strategy, the efficiency of which is 86%. It also features an extremely simple work algorithm and is able to assess the market in all charting modes, which allows traders to work efficiently in the market, getting the highest account growth rates. To trade using this technique, the following indicators are needed: Alligator, EMA indicators with 15 and 20 line periods settings, RSI, acting as a filter for system signals.
To purchase an Up option, wait for the following indicator signals to appear on the price chart: the EMA lines crossed the Alligator line bundle in the up direction, RSI is trending above the midpoint of the scale. To buy an option DOWN it is necessary to wait for the following signals on the price chart: the EMA lines crossed the bunch of Alligator's moving lines in the downward direction, the RSI line builds the trend below the median of the scale.
- "Storm" - a binary strategy of 15 minutes (more about strategy)
This trading method can be considered a novelty in the field of binary trading, although familiar indicators are used here. It is a universal strategy with a simple principle of operation, high accuracy of signals (up to 87%), successfully works with any assets and any timeframes. The following indicators popular with traders are used: SMA, MACD and RSI.
To purchase a call option, wait for the following signals on the chart: RSI breaks through the 0 level of its scale in the up direction, showing a new trend direction; the SMA moving average crosses one another with an upward slope; MACD "agrees" with the new direction and confirms these signals by breaking through in the upper direction of the zero line of the scale. To buy a PUT option, it is necessary to wait for the following signals on the chart: RSI breaks the 0 level of the scale in the down direction, showing a new market trend; the SMA moving average crosses one another with a downward slope; MACD "agreeing" with this trend, confirms it by breaking in the lower direction of the zero line of the scale.
- System "Cross" - binary options strategy 15 minutes (more about strategy)
This is an uncomplicated trading system, which uses a number of unique market indicators to generate accurate signals. The efficiency of work here will be more than 87%, which guarantees a high percentage of capital growth. To work with the strategy template it is better to use the service https://ru.tradingview.com/, which is available a large number of indicators, including rare ones. To trade on this methodology, the following indicators will be needed: Least Squares Moving Average, high-precision Stochastic RSI and MACD Crossover.
To purchase a CALL option, the following combination of instrument signals must be identified on the template: Japanese Least Squares Moving Average candles crossed the muving upwards; Stochastic RSI dynamic curves crossed upwards and left the oversold area; MACD Crossover blue muving crossed the red line upwards. To purchase a PUT option, it is necessary to identify the following combination of instrument signals on the pattern: Japanese Least Squares Moving Average candles crossed the moving average downwards; Stochastic RSI dynamic curves crossed downwards and left the overbought zone; MACD Crossover blue moving average crossed the red line downwards.
- "New Wave" - a profitable strategy for 15-minute options (more about strategy)
This strategy is known in the market as "New Wave". Its accurate signals will guarantee a profitable closing of more than 80% trades, as these signals indicate the emergence of a trend. The unique methodology will allow you to steadily increase the volume of the deposit. Popular trading tools are used for the work: Bollinger Waves, EMA (75), EMA (50) and MACD.
In order to open a bet with prediction of increase in the price of the asset, it is necessary to wait for the appearance of the following indicator signals on the chart: the central moving line of the Bollinger Waves should break the EMA moving average in the upward direction, the MACD dynamic curves should break the zero axis in the upward direction. In order to open a trade with the prediction of lowering the price of the asset, you must wait for the following signals on the chart: the central moving line of the Bollinger Waves must break the EMA moving average downward, the MACD dynamic curves must break the zero axis downward.
Strategies with an expiration time of 30 minutes
Such strategies are designed to trade 30-minute options in the most efficient way, to get from such trading stable earnings.
- Binary options trading system for 30 minutes "Suzuki" (more about strategy)
An interesting strategy, which was the product of long testing of different market analysis tools. This methodology has a simple principle of operation, offers profitable signals that will allow the trader to count on success during trading. To work with this methodology, you will need less common indicators, which are available absolutely free in the Live Chart service: Pivot Boss 4 EMA, MACDgen and TheLark Volume Momentum.
For operations with contracts UP it is worth waiting for the following indicator signals to appear on the chart: the yellow, blue and gray lines of the Pivot Boss 4 EMA should break through the red service level in the up direction; all MACDgen lines have crossed the technical level of the scale in the up direction; theLark Volume Momentum bars should also rise above the scale level. For operations with DOWN contracts, it is worth waiting for the following instrument signals to appear on the chart: the yellow, blue and gray Pivot Boss 4 EMA lines must break through the red service level downwards; all MACDgen lines have crossed the technical scale level downwards; TheLark Volume Momentum columns must also fall below the scale level.
- The 30-minute trading system "Glacier" (more about strategy)
To trade 30-minute options, we offer you a system whose tools are specially tuned to work with such an expiry time. The system is simple, has a high level of efficiency and accuracy of signals, is maximally versatile and allows working in the futures trading mode with different assets, including cryptocurrencies. Rare indicators are used, which are available to trader in free service https://ru.tradingview.com: Least Square Moving Average, Bollinger Bands %B and UCS_ Stochastic Momentum Index.
In order to open a contract upwards, you need to wait for the appearance of the following signals on the chart: the asset chart has crossed the Least Square Moving Average 100 level in the up direction (a clear signal of the uptrend formation); the Bollinger Bands %B line, having turned from the oversold level, has crossed the 0.5 scale line in the up direction (this proves the market uptrend development); UCS_ Stochastic Momentum Index has generated the final signal to form a deal by crossing the muvings in the up direction (thus, this tool has confirmed the possibility of the quotations turning upwards in the near future).
In order to open a contract to the DOWN, you need to wait for the appearance of the following signals on the chart: the asset chart has crossed the Least Square Moving Average 100 level downwards (this is a clear signal of the formation of a downtrend in the market); the Bollinger Bands %B line, having turned from the overbought market level, has crossed the 0.5 scale line downwards (this shows the development of the market downtrend); UCS_ Stochastic Momentum Index has generated the final signal for position execution by crossing the muvings downwards (this tool has confirmed the possibility of a market turn down).
- The strategy for 30 minutes "Torero" (more about strategy)
We offer you an indicator-type system with high signal efficiency up to 87%. You will need the service tradingview.comSince the strategy uses rare indicators: TheLark LMA v2, MACDAS and FX Sniper: T3-CCI.
To buy an electronic CALL contract, you must wait for the following set of signals on the chart: in the asset chart field, the lines crossed the TheLark LMA v2; FX Sniper; T3-CCI signals a change in trend direction by crossing the level of the scale median in the up direction; MACDAS muvings crossed the level of the scale median in the up direction, forming a high level of line discrepancy between them. To buy an electronic PUT contract, wait until the following set of signals appears on the chart: in the asset chart the lines have crossed the TheLark LMA v2 moving average downwards; FX Sniper: T3-CCI signals a change in trend direction by crossing the level of the scale median downwards; MACDAS moving average has crossed the level of the scale median downwards, forming a high level of line divergence.
- Technical and fundamental market analysis with an expiration time of 30 minutes
Such an expiry is comfortable for work, it allows to exclude a lot of market "noises". Traders can effectively work with both technical and fundamental market analysis. Many tools are available for full-fledged thehanalysis, allowing to determine exactly the trend direction: moving averages, Bollinger Bands, Parabolic ATS, Alligator, etc. Separately note here MACD - this is one of the strongest oscillators, which will determine the best entry point into the trade. RSI, Momentum, Stochastic, etc. are usually used to filter signals. It is also convenient to work with technical levels of support and resistance, candlestick patterns (such as Pin Bar, Hammer, etc.) at such a comfortable expiry.
Fundamental analysis of the market will also help to take into account a number of important factors affecting the market dynamics. Here the economic calendar comes to the rescue. By studying a number of scheduled and unscheduled news, the player will prepare for a change of trend and earn on it.
- The "Puria Method" strategy for 30 minutes (more about strategy)
This strategy will allow you to simplify trading, use accurate indicator signals and increase earnings on your account. The following basic indicators are used: MA with a period of 85 red (Low; Linear Weighted); MA with a period of 75 red (Low; Linear Weighted); MA with a period of 5 yellow (Close; Exponential); MACD.
An up trade can be opened when the following signals are present on the chart: the yellow MA should cross two red MAs from below, all lines keep increasing; the check candle is above the whole bunch of slides (shadow touches are allowed but not desirable); MACD is above zero level, the bar corresponding to the check candle should be higher than the previous one. A down trade should be opened when the following signals are present on the chart: the yellow MA should cross two red MAs from above, all lines are descending; the check candle is placed below the slips; the MACD is located in the negative zone, the current bar is lower than the previous one.
Two Crossroads Strategy
This system was developed and tested specifically for trading these options. Due to its simplicity and efficiency, it is easy to achieve stable earnings of decent money. Alligator muwings are used for operation. To buy a PUT option, you must wait for the following signals to appear on the chart: the quote candle must cross both of the moving average moving average downward, the moving average moving average lines must cross each other in the downward direction. To purchase a call option, you must wait for the following signals to appear on the chart: the quote line must cross both moving average moving averages upwards, the moving average moving lines must cross each other in the upward direction.
Trading on the news
Trading on the news is especially popular with traders because it allows them to work with facts that directly affect the changing dynamics of assets. However, it is worth remembering that during the release of important news, the market is extremely unstable and this can lead to losses, so it is worth remembering not to trade during these moments. Also, you should avoid trading during the 15 minutes before the event and 15 minutes immediately after the news announcement. When deciding on how to enter a trade, it is important to be able to recognize the dynamics of a new trend. You should use the following data for your work The economic calendar.
The classic news trading looks like this:
- To purchase an option COLL it is necessary to perform a series of actions: to study the data of the economic calendar, select an asset; conduct a fundamental and technical analysis of the dynamics of the selected asset, to find a long-term bullish trend and if the graph shows an uptrend, you can buy a COLL option;
- To buy a PUT option, you need to do the following: study the data of the economic calendar, choose an asset, conduct a fundamental and technical analysis of the dynamics of this asset, find a long-term bearish trend and, if the graph shows a downtrend, you can buy the PUT option.
- Strategy with accuracy from 90% - trading on the news (more about strategy)
Another effective options trading strategy that will allow you to get the maximum profit from trading on the news. Using it in your work, you can easily make more than 90% options with a positive outcome in the market. In doing so, this system is simple and does not require additional technical tools of analysis and knowledge of options trading processes. Such trading on the news is a universal strategy, suitable for working with any assets, but the most profitable assets will be the stock and commodity markets.
Let us demonstrate the possibilities of the strategy on the example of investing in oil. The price dynamics of this asset is influenced by many factors and publications, here we will rely on the data of the common statistic indicator - the volume of crude oil reserves. This information is published weekly on Wednesday. The last publication showed that oil reserves decreased, which leads to an increase in demand on the market, while the price of oil is rising. Using such information, the trader has only to buy options KOLL in case of good forecasts and options PUT in case of negative reports.
- Trading binary options on the news (more about strategy)
Another reliable and profitable technique of trading on the news, which will allow an investor to get a significant profit. It is not for nothing that trading on the news is considered to be a simple and profitable way to trade options, which, with the right approach, will avoid losses.
By tracking the news of large companies, government agencies, the trader, if he correctly assesses the situation, can make a profit from his deal. For example, if the US Department of Labor makes a news release about the growth of employment in the country, it confirms that the American economy is developing and the US dollar is growing in value against other market currencies. Investors make use of such data to buy a KOLL option. You can track news and organizations' publications at Investing.com, and traders also use the Economic Calendar.
How to trade on the news according to this strategy? In the morning, an investor carefully studies the macroeconomic reporting table, determines the events on which he will trade. It is also necessary to see what time the news will be released, and a few minutes before that time open the news reporting table and the broker's terminal for trading options. It is worth remembering that trading is only on the news that came out better or worse than predicted. If the value that appeared in the table is worse than predicted, it is published colored red (you can buy PUT options); if it is better - the figures are colored green (you can buy COLL options). In this case, the deal must be concluded immediately, that is, as soon as the news is released. It is better to choose the "major" pairs (EURUSD, USDJPY, AUDUSD, USDCAD, GBPUSD, etc.), because the dynamics of quotations will be more intensive and you can get a good profit.
Trading with expiration dates starting from 24 hours
These strategies will allow the trader to get the most out of long-term options, minimize the risks of loss, reach a stable income and join the ranks of professional market players. Such trading involves working with different strategies, indicators, trading on the news, etc.
- "The best strategy for D1"
This universal strategy is perfect for "evening" traders, because the transaction is opened once a day, 30 minutes before the close of the daily candle. It will allow the investor to get a decent income from trading. The strategy uses basic tools: Parabolic SAR, Stochastic, Awesome Oscillator and AS B. Williams.
To purchase a CALL option, one should expect the following indicator signals to appear on the chart: the Parabolic SAR point should be located below the signal (current) candle, the Stochastic is directed upwards, the AO and AC indicators are colored green. To buy a PUT option, one should expect the following indicator signals to appear on the chart: the Parabolic SAR point should be located above the current candle, the Stochastic should be directed downward, the AO and AC indicators are colored red.
- Weighted Taylor - strategy for D1
A highly profitable strategy, designed for an expiration period of one day, will allow you to extract the maximum benefit from trading, to get a decent income from the investment in the market.
The strategy uses the following indicators: 5 WMA (linear weighted moving averages), RSI and MACD. To buy the DOWN option, the following signals should be expected on the chart: fast moving averages should cross slow moving averages from top to bottom; RSI should go beyond the red corridor to the north; MACD bars should break through the red level to the bottom. To buy an UP option, the following signals should be expected on the chart: fast moving averages should cross slow moving averages upwards; RSI should break through the red zone upwards; MACD line should rise above the red line.
Expiration is an important factor in the success of a trader trading in the binary options market. It is worth to use its features in the work, which, of course, will improve the performance of options trading. It affects the intensity of trading, the number of trades performed within the session, on the performance and comfort of the trader. It is not that hard to choose a suitable type of expirations, this is influenced by: convenient trading mode, free time, experience, specific strategy, whether the trader likes to risk his money or would like to spend more time on market analysis, etc. By correctly using a specific type of expiry, market players can fully "customize" trading to "fit" themselves: that is, trade, for example, long or short term options, do it at a convenient time for them, in a convenient format, using convenient tools, strategies, etc.