Strategy for trading binary options "Channel Breaking"
Flextrade_admin
If your goal is to make money in trading, then technical analysis for binary options is the right tool for you. By analyzing binary options you can make your trading much more successful. For this you just need to use a binary options strategy based on technical analysis. And this is the one we will be looking at.
Before you start trading, you need to choose the right broker. We recommend a platform-
We would like to offer you a strategy called "Channel Breakout". When analyzing binary options, such a channel is depicted by two parallel drawn lines drawn on the maximum tops and bottoms of the quotes on the chart.
The chart clearly shows that at first the quotes were going down for a while, staying within their channel, but then they broke through it and started moving in the opposite direction. It is this kind of maneuver of quotations that brings traders profit.
And now we will describe the way to use technical analysis for binary options to determine the price channel and earn on its breakdowns.
Determination of price channels
We have already mentioned earlier that price channels are drawn based on several minima and tops in the price chart (the analog of the shown channel in the picture above). The channel line is drawn at least along two maximal tops and bottoms.
Having drawn a channel, you will need only to wait for the quotes to break through it in the opposite direction from the side in which they were moving before, and then conclude a transaction in their new direction. In this case it is necessary to wait for two more candles for the quotes to appear before entering into the transaction. This is how in this technical analysis for binary options you will know that the trend of the quotes in their movement has been confirmed.
When the third candle appears, you should immediately open a trade in the direction of the breakdown, setting an expiration time of 5 minutes.
Note that when two more candles were formed after the breakout, the movement of quotations for some time was still in the profitable direction, and after 5 candles on the 5-minute expiration, the transaction would have ended in profit.
By the way, what's more important - to analyze the options, you need to use a chart, only with a 1-minute timeframe, in which the value of one price equals one minute. In this way, you will achieve maximum consistency of the technical analysis for binary options with the chart opened on the broker's terminal. A similar pattern is used to analyze binary options on a rising trend: you have to wait for the price to go beyond the lower boundary of its channel, wait for the next two candles to close, and on the third candle, make a deal on the downside.
