The secret for binary option trading
I have been part of a quite exclusive group of binary option traders. The group has kept our techniques hidden for years. Finally a decision has been made and the knowledge has been made public in several ways.
There are several profitable techniques for binary option trading, and the good thing is that all of these are based upon the same principle: the candle closure time.
Most people think that binary option trading is about foretelling at which level will price be on a certain moment in time. That is completely wrong, if things were so evident in life no one would make a cent from it. We always need to add a small twist to get something profitable from what stands in front of us.
Binary option trading is about setting up our charts to match the expiration time of contracts so that these expiration times perfectly fit with our candles duration. And then magic occurs and we have to work in the same way as we do when designing strategies based upon price action trading in Forex or Stocks.
For instance, the 261.8 technique is a very basic one based on price armonics. When price touches the 261.8 Fibonacci expansion relative to a HH-LL or LL-HH (HH-> higher high, LL-> Lower low), it almost always closes back to a level it was before touching it.
Therefore only brokers offering contracts expiring at the end of the candles can be traded. For instance, if now it's 15:23 and the contract expires at 15:25 we can trade using the 5m and 1m candles. If it expires at 15:30, then we could use the 30m, 15m, 5m, 2m and 1m candles to trade. Another option is being able to resample the time series to exactly match the expiration time, but this feature is not supported by default charting software requiring custom offline processes.
So we can just mark the 261.9 expansion level and enter put when price was coming from below or call if price was coming from above, no matter which is the trend.
One could make a living only by applying this technique and this is so simple it is amazing. How could one come up with such techniques? One has to analyze charts and find patterns no matter how it takes. Also simple even if 95% of people always lose in trading.
Maybe not so simple or at least maybe not so common.