System for Binary Options Trading – Binary Options Strategies
The world of binary options trading has been growing for so many years now. During those times, traders have come up with many different strategies that could be used for binary options trading. Some of those strategies are using graphical methods such as charts while others use indicators or candlestick analysis and many other different methods. Additionally, there are also mixed strategies that use different elements from different strategies and combine them in one single strategy by using different instruments from the strategies’ algorithms. On the other hand, there are those strategies that considered very simple and yet very profitable and very easy to understand even for new traders.
Ichimoku trading system is a strategy for binary options trading. Initially, it was developed in Japan and from there it spread all over the world. Today, this binary options trading strategy is very popular and it is used many traders all over the world and according to this strategy the accuracy of the signal is very high 70 percent.
For a trader to start using this strategy, a trader will have to download and install on his or her computer MetaTrader 4 trading platform. Besides that, a trader will have to install indicators and template for trading system as well. After you have installed all of this and applied it on the chart pattern trading quotes a graphic asset will start to make a shape.
At a moment when the candle on which the signal for the trade originated is closed, the new candle is light up below the Ichimoku cloud and the trader is able to enter the Put binary options trading. However, when the new candle is light up above the Ichimoku cloud the trader will be able to enter the Call binary options trading. This binary options strategy also provides the trader, if he or she provides it, with the opportunity to conduct the long-term trade and trade will be able to do that by setting the Daily timeframe of the template system that is available on the chart.
One of the simplest strategies for binary options trading that is based on the candlestick analysis is called Trend Reversal. The Trend Reversal strategy is most often used for the intraday trading that enables traders to achieve the profit by conducting the trading sessions. In order to a trader to use this strategy he or she will have to follow the H4 timeframe for the USD/CHF currency pair that is available on the MetaTrader trading platform.
The main idea behind this strategy is the fact that any movement is actually never infinite. It means that if it happens that the price is moving up for some time that it will eventually go down and it also means that if it happens that we get a few bad prices that we should wait for a change. The candle that appears in this case can indicate the trend reversal which does not often that frequently. Besides that, this can also indicate that the correction of the previous moment is happening. If the candle goes up for a few days it is necessary to wait for the bearish candle, the point when it is the highest. However, on the other hand, the same is also applied in the case when the candle goes down and when it reaches the bullish candle or the lowest point.
Even though some traders might think that Doji binary options trading strategy is a reversal it is not. The Doji candlestick pattern that appears when using this strategy actually makes the traders think that the balance between the buyers and the sellers in the market has appeared. However, it still does not provide information who will continue to push the binary options market. The Doji candle appears to have a small body and a very long shadow that it casts. What this candle indicates is the fact that the price during the certain timeframe has attempted to move up or down but in the end it has returned to the level from which it has started.
The Doji candle may actually signal the reversal but only after it had a strong movement down of the price after the bearish candle and it should be made of one half of the body that has the low shadows that the Doji candle has formed. This, on the other hand, indicates that the sellers are not able to raise the price and that they have taken a break so to say. The next candle actually will answer the question in which direction the market will move on next.
If the big white candle appears after the Doji candle, it means that it is time for a trade to enter the market by buying the Call binary options. Some traders may wonder why the trading occurs only on the trend reversal. The answer to that question is the fact that often such move is actually much faster and in that way, the chances of a better outcome are much higher. Because of that, if we recognize that the following candle will break the Doji candle we should enter the market. The same is applied when the price movement is going down and because of that, we need to wait for reversed conditions in order to enter the market. The higher timeframe charts are used in order to confirm such signals that will eventually lead us towards entering the binary options market.
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References and Further Reading:
- Pure and mixed strategies for the EOQ repair and waste disposal problem (Knut Richter)
- Mixed strategies in strictly competitive games: A further test of the minimax hypothesis (Amnon Rapoport)
- Approximate Purification of Mixed Strategies (R. J. Aumann, Y. Katznelson, R. Radner, R. W. Rosenthal, B. Weiss)
- Continuous-Time Dynkin Games with Mixed Strategies (Nizar Touzi and Nicolas Vieille)
- The complexity of computing a best response automaton in repeated games with mixed strategies (Elchanan Ben-porath)