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Re: BINARY OPTIONS TRADING STRATEGY & IDEAS

wolfzeacker, Sat Mar 20, 2021 6:34 am

I think I made a bit of a mess by posting it in the wrong places, so I apologize for that.
Anyway, this trading system uses some Price Action concepts to make decisions, but it has a strong support of extremely relevant data, such as volume, volatility, macro and micro trends ... so here is the individual explanation of each indicator, as well as its applicability.
I would like to say that the system can be used in different ways, so feel free to adapt everything to the personal taste of each one.

1 - This first indicator is called "trend check" and as the name suggests, it shows the most recent trend in the market, with an addition: when the dotted line is red, more activity is expected during the movement, when the dotted line is "off", the trend tends to go more smoothly.

2 - The second is a simple fractal indicator, it is called "HH LL", here we will use it to build price channels, find tops and bottoms, as well as a trigger for entries (I will explain in the entry rules)

3 - The next one is called "Price Entry", it will provide a good part of the entry signals. They are simple triggers, but they can and are used in different ways, anyway, they do not repaint, do not disappear according to the formation of the candle and mainly, they appear in the opening of the candle.

4 - Another indicator is called "zones" and it basically acts showing support and resistance zones, that's just it.

5 - The next indicators can be somewhat confusing, but after a while it becomes easier to understand, it is called Trend. it shows, firstly, the majority direction of the trend, free of minor corrections and minority influences, the second part of the indicator shows in terms of volume the activity in that specific point of the market, orange zones usually have more volume, whereas greenish gray zones usually exhibit the reverse behavior.
(here is an addendum: usually in trends, the volume tends to fall in corrections so, "colorless" zones after a strong movement with volume is a positive sign to, for example, position yourself in the direction of the trend believing that the correction will end.)

6 - the sixth indicator helps us to keep an eye on the volume candle by candle. it is called "Volume Analysis", the indicator shows input triggers (whenever a green bar appears, it is an indication to open a CALL position, just as, when a red one appears, the same must be done for PUT).
Another important thing is that it is always recommended to keep an eye on the black line, starting from the previous bar that is currently being formed, if it is in a growing movement, it means that other traders are trading in that region, but if it is in a movement decreasing, it means that at that moment, the other trades are closing their positions and exiting the trades.
To save space on the MT4 screen, I usually put this indicator and the "Trend" indicator in the same space.

7 - The last indicator measures the "strength" of the trend and how quietly the price is obeying the direction of the current movement, it is called "Volatility Analysis".
The first thing to note about this indicator is whether the position of the price line is above or below level 50. Above level 50, it indicates that the price is "expecting a bigger bullish move". Below level 50, it indicates that it is "expecting a bigger bearish move".
But be aware, as soon as the price breaks level 80 upwards, this bigger bullish move will start with a lot of strength, but it should not go too far and will soon revert to stay below level 80, follow this same reasoning for level 20 and downward trends.
finally, when the indicator line is orange, it means that the price will |probably| calmly follow the current movement, without many deep corrections or explosive candles, but on the other hand, if it is greenish gray, things can probably be unstable during the current movement.

these days I have used only the two rules shown here, however, I imagine that others may exist, I would be happy if you could help me by testing.
Trend Check Trend Check

HH LL HH LL

Price Entry Price Entry

Zones Zones

Trend Trend

Volume Analysis Volume Analysis

Volatility Analysis Volatility Analysis

This is the complete template. This is the complete template.

E.G. entry 1 E.G. entry 1

E.G. entry 2 E.G. entry 2

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