Trading on the Trend with Binary Options

For a profitable binary options trading Today there are many different kinds of trading techniquesThe most popular and effective approaches, however, continue to be the classical trading approaches, which are based on the most common cyclical patterns of the market. Nevertheless, the most popular and effective are still the classic approaches to trading, which are based on the most common cyclic patterns of the market. That’s why today we want to take a closer look at the “Trend Trading” principle, which is a classic way of predicting the market in binary options. In addition, this particular approach has a simple format to use and will be useful even for beginners.

Trading strategy “By trend” – trading rules

Before you start trading you have to choose The optimal trading platform, because the effectiveness of this trade strategies will depend primarily on the compliance of the functionality and tools of the platform with the requirements of this methodology. Another factor influencing the effectiveness is the parameters of trading conditions in terms of their compliance with the rules money management. Thus, to make the most of this approach, you should have a trading terminal with the following options:

• Scalable quotes chart with a changeable timeframe
• Selection of popular trading assets
• Options with an increased level of profitability
• Expanded expiry dates
• Minimum trading conditions
• Highly accurate quotes
• Graphic tools

We immediately recommend choosing a trading software for trading, which provides its clients broker INTRADE.BAR. First, this brokerage company is a licensed financial market participant, and second, its trading terminal is equipped with professional services for profitable option trading, namely:

• Multifunctional schedule of quotes
• To 97% contract yields
• The duration of contracts within 5 minutes to a day
• Built-in graphics services
• Market quotes
• more than 80 trading assets
• Trading conditions – initial capital of 10$, the minimum option of 1$

So, The system of trading by trend is based on the regularities of the asset’s value construction. Undoubtedly, there is always one global trend in the market movement, in the direction of which the quotes are moving. However, while moving in one direction, the price of the asset may also pull back and retrace to corrections of different depths, which mainly opens more opportunities for traders to earnings on binary options. In addition, to increase the effectiveness of the use of this cyclic pattern, there are trading techniques of technical analysis on the market, the main principle of which is trading at predetermined levels of the trend.

To identify one of the price levels on the chart (resistance or support), touching which the quotations naturally radically change the vector of their movement, the tool “Line” is used. With the help of the line on the trend’s maximums there is a resistance level, and on the minimums – the support level:

That is, this tool allows the trader to determine the price level of the asset to place trade bets on the reversal of quotes from it. In our example, we use the support level, which we determined on the uptrend, and the pattern of bounces from it of the quotations at the moment of touching.

In the case of a downtrend, the line tool determines the resistance level, and trading is done in a similar type of trading signals – when the price bounces off of it when it touches:

One more effective variant of trading “By trend” is trading in two directions of market movement simultaneously, thanks to the channel formed on the chart of the asset. This trading format is achieved by building two trend levels on the chart simultaneously, within which you can perform more dynamic trading:

The efficiency level of this approach can reach 87%, due to which a similar number of executed contracts will end in profit. That is, with the help of this approach it is possible to increase the amount of the deposit account more dynamically.

Expiration

Trade signals obtained by the method “By Trend” trading signals should be executed by trade bets, which will be made in the range of 3-5 minutes. However, by increasing the analyzed timeframe of the chart, you should also increase the expiry time of the option. In this case, when calculating the appropriate duration, it should be remembered that as long as there are at least 5 price candles on the market, there should be at least 5 price candles.

Risk Management

For effective management of trading capital and competent calculation of risks, it is necessary to carry out trading with minimal trading contracts. When trading with a large capital, it is possible to set the transaction amount at 5% of the deposit amount, and when trading with a small amount of funds, the lot amount is set to the minimum size.