The Rebound Line Strategy By Ikamos and Shreck

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Two key concepts to get to grips with when trading with binary options are those of Support and Resistance levels. They are perhaps two of the most basic elements of technical analysis and it is vital that you have a good understanding of them.

They are easily to understand and can easily be applied to any strategy to provide trade verification. They can be used to identify points to place stops or levels at which to take profits.
Their simplicity helps to make this one of the binary options trading strategies for beginners.

Understanding Support And Resistance

The terms ‘support and resistance‘ refer to levels in the market that have previously stalled price gains or falls. Essentially they identify points at which sellers of an asset are prepared to enter the market (in the case of support) or liquidate their gains (in the case of resistance).

Here’s a brief definition: –

A support level sits under the current price. It is therefore often referred to as the price ‘floor.’
A resistance level sits above the current price. It is therefore considered to be the price ‘ceiling’.
Take a look at the image below. It shows a daily chart of the EUR/USD. A number of support and resistance levels have been plotted across the chart. These can be interpreted as the expected points at which buyers and sellers will enter the market when these price levels near.

Note also how these levels can also be formed from rising and falling trends in the price. You can also see how the moving averages also provide support and resistance to price movement both when the price is rising and falling.
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Re: The Rebound Line Strategy By Ikamos and Shreck

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A further important point to note about support and resistance is the way in which these levels change when the price moves through them.

Once a level of resistance is breached by the price it then becomes a new level of support. Similarly once a support level is breached it will then provide resistance to subsequent gains in price.

Identifying Levels

There are a number of ways in which support and resistance levels can be identified. It would be wrong to assume that they are some unique and mystical level. Common support and resistance levels can be previous highs and lows, rising channel levels, retracement levels or pivot points.

They can often be easily be identified by taking a look at the price chart and visually noting where price movements have previously stalled or bounced.

When looking for these levels it is important to note that support and resistance levels that exist in higher chart time-frames such as on the daily or weekly charts, are going to be stronger than those from say, a 5 or 15 minute chart. Also consider that if a level has been tested and held many times previously, then it will take a strong impetus to breach when the price nears it again.

Another place where support an resistance occurs is at psychological price levels. All time highs and lows or new ‘trading ranges’ can also reject price moves. For example, when the price first approaches a new high a temporary sell off may be triggered, with price high being seen as resistance to further gains. Often a significant change in fundamental market outlook is required for a price to push and sustain gains into this new range.

Support and Resistance Binary Options Strategy

While support and resistance levels are an important trading concept, they should be considered complementary to a strategy, rather than the basis of a complete trading strategy for binary options in themselves.

Having said that, you could form a really simple support and resistance binary options strategy based on the expected price rejection whenever a support or resistance level is neared. This could be a suitable way in which to profit from price rejections near strong support/resistance near all time highs or lows.

A better approach to using these technical levels would however be to combine them with the use of a technical indicator. For example you would mark key levels on a chart and then look for overbought/oversold readings on a technical indicator such as the RSI to form a overbought or oversold strategy.

Things To Consider

While these levels are invaluable for the trader, don’t make the mistake of putting all of your faith in them. Support and resistance levels are not permanent. You need to expect the price to push through them at some point

The general theory is that the more times that a level has been tested, the stronger it will be. Therefore it is worth noting the levels which exist on high time-frame charts (daily, weekly) even if you are trading on low time-frames. Levels set at these higher levels will be stronger and therefore less likely to fail.

An important point to consider when trading a support and resistance binary options strategy is that these levels are not absolute. Often an enthusiastic market can see an asset price temporarily extend. Therefore be prepared to use a measure of tolerance. Depending on the market that you are trading, 5-10 price ticks either side of the identified level would be a good starting point.

Like much of technical analysis there is no concrete reason why support and resistance levels should work although it is evident that most times they simply do.

An explanation could be that they are self-filling. As they are given so much attention by traders, it is conceivable that the sheer volume of orders situated at these points can cause the anticipated reaction to happen.

However, no matter how or why, binary options support and resistance trading systems tend to work.

You should get a good grasp of how these levels work if you want to maximize your potential for making trading profits.
Don't confuse My Confidence For Pride, And My Joy In What I Do For Arrogance

Re: The Rebound Line Strategy By Ikamos and Shreck

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Everyone over the next four pages ikamos and i will be giving detailed analysis on how this strategy works
When to trade
What timeframe to use
How to trade
What to look out for
I suggest we all sit back and soak up all the information, we will take questions at the end of the exposition (5th page).
As always we should all ensure to be civil, no suggestion for anything other that the topic will be entertained
Be considerate to others and ask questions related to the topic we shall try to give a response.
we will enjoy this journey together and win together.
Please let us show decorum and maturity as we always do, love makes this world go round.
Don't confuse My Confidence For Pride, And My Joy In What I Do For Arrogance


Re: The Rebound Line Strategy By Ikamos and Shreck

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A key component of the way Ikamos and i trade this system is the use of Trading view platform and hourly data from
____________________________
we get the hour to hour summary of classical support and resistance information for mainly R3 levels
You can source for your preferred instruments Technical Analysis from any economic or Forex related currency website.
Other wise simply google like this (EUR/USD Technical Analysis)
you should see the pair and associated indicators, kindly look for PIVOT POINTS for classical and note R3 for support and resistance for that hour.
You can then proceed to your MT4 or web trader then mark those points or 5 pips before the point
For instance the closing market price for classic on the hour by Friday was 1.1740 you simply set an alert for 1.1730
Please see illustration below.
for reasons of constraints we may not post whole pages from other web sources
Don't confuse My Confidence For Pride, And My Joy In What I Do For Arrogance

Re: The Rebound Line Strategy By Ikamos and Shreck

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KayserCh wrote: Sat Aug 19, 2017 10:14 pm This indicator could help , u could configurate D,H4,H1,M30,etc pivots
Thank you for your contribution KayserCh, for the purpose of this exposition we are not using MT4 based pivots or SR indicators, data for trading is acquired via the sources described above.
you can get clarification as to the reason why at the end of the exposition.
One thing you should be aware of at this time is that we trade this strategy successfully exactly how we describe it,further analysis is ongoing.
Don't confuse My Confidence For Pride, And My Joy In What I Do For Arrogance


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