The popularity of binary options is gaining momentum. What is the secret behind binary options? Simplicity, accessibility, and high returns – that’s what attracts people to options trading. In addition, trading binary options with indicators and on systems based on them significantly increases your odds in a profitable way. Against this background, we want to introduce you to the accurate binary options strategy “Two reversals,” which works on one indicator, but despite its simplicity, yields the highest amount of profit.
The secret of binary options “Two reversals”
There is a company in the options market that has made significant progress on the issue of trading binary options with indicators. The Binomo broker has developed a platform that allows the use of indicator systems for trading binary options. An integrated indicator set in conjunction with attractive trading conditions (the bottom bracket value of an option contract is $1, the size of the initial trading capital is $10) lets you effortlessly get the highest returns on the options market. The new Binomo platform is really an amazingly innovative product that has already helped make a lot of traders rich.
And now let us consider the system of “Two reversals” – best strategy to trade binary options. At the heart of the strategy lie the MACD indicators and the rules of constructing technical trend lines. Let’s set the MACD indicator on the quote chart and take a closer look at these patterns:
For the analysis, we will use linear tick chart quotes, on which prolonged price movement trends can be seen more clearly. Note that the indicator lines of the oscillator do not make clear fluctuations in the areas of overbought and oversold. This movement is accompanied by intersections of lines and changes in the building direction of the histogram. Such irregular oscillations can be used successfully to trade binary options. Later, we’ll take a closer look at the signals of the binary strategy.
The binary strategy of «Two reversals» — trading signals
The binary strategy of “Two reversals” – trading signals
Before opening trading positions, it is necessary to identify the trend of the indicator. It’s simple, if the lines on the oscillator of the MACD indicator cross upwards in the oversold zone (below the centerline of the histogram), then the trend is growing. To trade risk free, you must wait until two upward reversal zones appear on the indicator (that signal confirms a long-term trend that will have short-term price corrections). With the help of depressions constructed by indicator lines, we identify long-term quote trends. You can start to do UP contracts after the second reversal of the oscillator (an upward intersection of the MACD lines):
For transactions on a reduction in the price of the asset, the same rule applies. During the formation of a downward trend on the indicator, open contracts DOWN when a second oscillator reversal line appears:
Using two reversals on the indicator lines, we exclude trading on short-term price corrections, which often happen quickly and cause losses. When identifying a clear signal of the “Two reversals” binary strategy, it is necessary to continue trading until the indicator line reaches the scale level of 0.02, or -0.02; at these levels, a full trend reversal often occurs, so continuing to trade would be dangerous. Using the MACD indicator in this case would bring you 78% profitable trades, and rapid growth of your trading account.
Money management and expiration
Another secret to binary options is the correct calculation of trading risks. To protect trading capital from drawdowns and losses, you must use small amounts per contract for options trading. The optimal level of risk can be considered 2% of the total capital. Minimize risks by using $1 contracts, which are offered by the Binomo broker. As for expiry times, it is necessary to set the expiry time to 1 minute for all transactions.