Support and resistance meta binary options
The fourth candle bullish candle with no wicks closed above the most recent resistance, and I placed a 5-minute Call trade. The Euro was boosted after the positive macroeconomic news; the pair reached new high of 1. I waited for some time to take this trade, but in the end, it paid off. After three indecisive candles that just closed above the recent resistance, I decided to go with a 5-minute Call trade. The price was moving in a channel with lower highs and an overextended bullish candle brokered the channel.
I didn't place a Call binary option on the next candle, but it would have been an ITM trade as well. By following my strategy, I waited for a breakout in the opposite direction, which happened on the second bearish candle after the newly created resistance. You can clearly see on the chart the reversal in direction and the small channel with lower highs. The price clearly continues south, and I was looking to place a Put trade. The big bearish candle smashed out of the channel, one minute before the close, I entered my trade.
I didn't wait for the full close because I was expecting an undeceive candle doji to follow. As you can see, it came out a hammer. Entering at the opening of the new candle would have been an ITM trade as well, a very lucky one, just one pip lower. The Pound just bounced from support 1. After two indecisive candles closed below, a small bullish candle closed above the resistance 1. I decided it was time for my Call trade, but that decision proved to be wrong.
The breaking black candle was too small to continue the buyers' enthusiasm, and that was my main mistake here. You can clearly see the formed channel and its break out with a big bearish candle. I entered my Put trade at the close of the breaking candle as I expected the down trend to continue, which proved to be the correct decision here. On the 5-min chart above, you can see three bearish candles closing below the support line, and in all three cases, it follows another bearish candle.
When the price is moving in a downtrend and a bearish candle closes below support, it proves to be a good Put trade signal. I have placed a Put binary option in the last scenario on this chart, which one may consider a bit risky because of the long wick.
Dollar was boosted because of revised data, which shows an economic growth of 3. After the pullback, the pair was on a rally again, and I placed a 5-minute Call trade based on pure price action.
You can see the unsuccessful attempt of breaking resistance by the bullish candle with the big wick inverted hammer. Thus, I had to wait and see what came next. Two small bearish candles were engulfed by a strong bullish candle with almost no wicks.
At the close of that candle, I entered a new 5-minute Call trade. These are drawn automatically and we only need to pay attention when an arrow appears. This strategy is based on tracking pinbars candles which have their wick at least 2 times longer than the body.
This strategy is recommended for currency pairs, but it might as well work with other assets. With these indicators we can enter a trade at the beginning of it and then ride with it.
How to setup the chart […]. You may have seen this indicator before as it is usually a part of more complex strategies. This is a very thought out strategy which is among my favorites and it brought me lately interesting profits. Even though it is a more complicated strategy, trade openings are very comprehensible from the chart. Doubles strategy uses Bollinger bands which you may know already.
Additionally, it also uses the MACD indicator which is suitable for binary option trade. And how do these indicator get along? How to set up the chart Timeframe: BBand Stop binary option strategy Published: BBand Stop strategie , binary options 5 minutes , binary options strategy , strategie.