Binary option 24 by 5 minute strategy
This time frame is one of the most versatile in terms of the types of strategies you can use because it is inherently volatile yet at the same time can sustain a trend long enough to be useful to us binary options traders. You can look at the bigger picture with 5 minute candles or you can drill down to 1 minute charts to see the swings in momentum. When choosing a strategy it really comes down to what kind of trader you are, what types of analysis you prefer and in the end, the asset you are trading.
When it comes to assets there is really no one class that performs best in the 5 minute time frame although most binary traders prefer forex, commodities and indices, not necessarily in that order. When using the 5 minute expiry set charts to 1, 2 or 5 minute for best effect. Most strategies are adaptable to any time frame, the caveat is that the shorter the time frame the less reliable the signal. A candlestick signal on the daily charts is stronger than one on the hourly charts that is likewise stronger than one on the one minute charts.
This video shows how to use multiple charts at IQ Option. This can be useful if trying to spot trends over multiple timeframes as mentioned above:. Traders simply pay attention to price action, the minute to minute changes in prices, and how that action behaves in order to make trading decisions.
In the old days this was done by watching the ticker tape all day, today it is much easier and more fun to use a charting package like MT4. These will work with charts set to 1,2 or 5 minutes. Scalping Strategies — Scalping strategies are very short term form of price action trading although they also incorporate other types of signals as well.
Scalping, simply put, is a trade based on what you think the market is going to do in the next period, and this usually means minutes, never more than 10, 5 is perfect. It is up to you to make the strategy suit your style. As I mentioned, I prefer using the strategy in trending markets and placing trades on retracements.
To identify the trend, I am using an EAM indicator. Some of you may prefer using two periods and waiting for crossings. You can also put Fibonacci levels into action to spot retracements. In trending markets, you are buying with the trend: In fact, usually prices are ranging, and if you want to use the strategy during all trading sessions, you need to learn how to trade in a ranging environment.
For beginners, it might seem more confusing with the price constantly moving up and down, but like in every other process, it takes practice. In ranging markets, the price bounces between the support and resistance levels.
Your aim is to place trades when the price is in the overbought and oversold zones. I have used many different indicators, including alarms and arrows popping all over the chart, and the truth is that if you focus on the indicators only, you will be lost. You should focus on the price action and learn to identify retracements, then you have a better chance to be on the winning side. It is not necessary to follow my signals precisely. You can remove indicators, or add new ones; simply make your own strategy, and make it work for you.
Of course, the outcome for everyone will be different, and it all depends on your skills, knowledge and experience. Knowing the nature of binary traders, I would suggest you start paying attention to the news because, for every trend, there is a reason behind it. Please feel free to share your results with this strategy in the comments below.
Should you have any suggestions how to improve the strategy, we are happy to discuss them. You can download free indicators and template. Skip to main content.