Binary options 60 second strategy represents a combination of technical indicators and price action. So far we’ve heard great feedback from our readers about our binary options strategy collections. From the name of this strategy becomes clear that preferred time frame is 60 seconds, or the 1-minute chart.
But we need to note that to operate with this 60-seconds time frame you must act fast and have a high level of attention. And what is even more important, always to keep this high level of attention while trading. Such conditions are really not suitable for some traders. You’ll need to make decisions very fast so you first need to realize if this is suitable for your trading personality. We recommend using the candlestick chart just because it makes easier to see the market trend and the price action.
But before start learning binary options 60 seconds system, our advice is to sort out some important things about it. The main that you should know that trading 60-seconds binary options has definitely much higher risk than trading with longer term binary options. If you are already sure that you have learned and understood all details of the 60-seconds binary option strategy, we strongly recommend you to backtest it again. Maybe do it a several times, until you will be completely self-confident and will be ready to take part in real performance.
60 Seconds Binary Options Strategy Rules
If you want to start trading with 60 seconds binary options strategy, then you will need to use some technical indicators, such as:
- 100-Moving Average
- 50-Moving Average
- Stochastic indicator using the default settings
The trigger signal for opening Call and Put binary options is will be pin bars and at what we also will be looking is the confirmation of oversold and overbought. If everything is normal your chart will have the similar look to the next figure:
The step that you should do at first with this binary options 1 minute strategy is to wait for the 50-moving average to cross below 100-moving average. If it happens, the trader is going to look to buy Put Option. And conversely, when the 50-moving average crosses above the 100-moving average the trader is going to look to buy Call option.
The next step is identifying the direction of the moving averages. Let’s say that it’s normal to see when the direction of 50-moving average and the 100-moving average match. The 60-seconds binary options strategy work as following: we need to wait for the moment the price to pull back into 50-day moving average after the crossover happened.
The last but not less important step is to wait for the moment a bearish pin bar to develop against the 50-moving average. The price should be trading below both moving averages. And conversely if the 50-moving average crosses above the 100-moving average, price should also naturally trade above these two moving averages. In the case it’s happened the trader is going to wait for a bullish pin bar to develop against the 50-moving average.
As soon as a pin bar developed at the 50-moving average, the trader shall use the binary options 60 seconds indicator, more specifically — stochastic. We need to use it for confirmation. If our aim is to place PUTs — we are waiting the stochastic indicator to show an overbought parameters, as soon as the pin bar has developed at the 50-moving average. The level of stochastic indicator above 80 levels is good for trader in this situation. But if the trader is looking to place Calls, he wants the stochastic indicator to show an oversold parameters as soon as the pin bar has developed at the 50-moving average. The level of stochastic indicator below 20 levels is good for trader in this situation.
For example, we took the figure with all the conditions for a good trade aligning up. So you can see all in details. We have a pullback into the 50-moving average with a pin bar developed, which is also confirmed by the stochastic indicator being in overbought territory.
After we bought our Puts we can observe the next 1-minute candle closing down and our Put options expires in the money. In the previous example, we focused on buying Puts option. Now we will consider an example how to buy Call options using the same rules.
When looking at the chart we shall follow the 1st rule: the 50-moving average is crossing above the 100-moving average and moving forward both moving averages needs to point upwards. As expected at the first pull back into the 50-moving average a pin bar has developed showing rejection.
However, the setup of buy Call options is not yet completed, because we need the stochastic indicator confirmation as well. When the pin bar has developed the stochastic indicator and entered into oversold territory, it gives the trader the green light to execute another profitable trade.
Our strategy will only generate a tradable binary options 60 second signals, when we can be sure with a higher degree of certainty that the trade will work in our favor. Even though this strategy is not excellent,can exist some inaccuracies and it can generate some losses, But in total, this strategy will give you plenty of scope for recovering all you previous losses and be profitable in the long run.
Which broker is better to choose for trading binary options?
Despite the simplicity and versatility of the binary options 60 second, firstly to make money and not for just simply waste it the trader must choose the reliable broker with modern platform for trading which supports all functions.
We recommend trading on FinMax – it’s really one of the best modern brokers, which not only provides a wide choice of assets, but also several types of options that can be successfully applied with this strategy with minimal financial risks.