60 second binary options strategy is a short term trading strategy that makes use of 1 minute chart inorder to forecast the direction of the price after 60 seconds. If implemented correctly 60 seconds binary options strategy could be highly profitable. It is used to place trades at high frequency as the expiry time is very short. Prices for a volatile asset like currency pair could move couple of points in few seconds so you need to act fast as well as you need to make a firm decision regarding the trade direction. That is you need to analyze the markets fast enough to place trade with 1 minute expiry. It is ideal that you test the strategy on a demo account first, inorder to get comfortable with strategy by practising on a risk free account and trade efficiently when on a live account.
Understand basics, How 60 Seconds Binary Options Expiry Works.
Things You Need
Inorder to trade 60 second binary options strategy you will need two important tools. First, a binary options broker which offer options with 1 minute expiry. I prefer you use banc de binary (Get 100% Bonus On Banc De Binary First Deposit).
Secondly you will need a charting software that allows you to perform technical analysis over selected financial instrument or asset for which binary option you want to trade. To see how I perform my analyses, watch my YouTube video on how to perform binary options analysis http://www.youtube.com/watch?v=eKiC6kiivrg
Fundaments of 60 Second binary options strategy
There is an old saying in the market, “trend is your friend”. A trend is general direction of price of an asset in the market. Once a trend start it is likely that it will continue for a longer time, there are two types of trends i.e. an uptrend or a down trend. In an uptrend the prices are rising, where as in a down trend the prices of an asset are depreciating.
So, How to spot a trend?
The prices moves like waves. You use two trendlines and join the highs with one trendline and use another trendline to join the lows of the candles.
The image above show two trend lines used to form a downward channel for price action over EURUSD 1 minute chart.
The image above shows an uptrend (over EURUSD 1 Minute Chart) marked by blue trend lines inorder to form an upward trending price channel.
If the candle starts to close below an uptrend lower trend line, this mean that the uptrend is ended. Same for a down trend, meaning if the candles start to close above the upper trend line, this mean the downtrend has end.
Trading 60 Second binary options strategy
Once we have spotted a trend and marked the highs and lows with trendlines, our major task in completed.
Call Trade Example
We will place a call trade in an uptrend only. When the price touches or is close to the lower trend line we will enter a call trade on our binary options trading platform.
Put Trade Example
We will place a put trade in down trend only. When the price touches or close the upper trendline we will enter a put trade. Remember prices moves like waves so you need to understand the pattern and when the price is ready to swing down again.
Understanding the Waves Patterns
This defies explanation but still to successfully place profitable trades you need to see prices as a wave. Only enter when the wave is about to turn, in your trade direction.
That’s not all, inorder to trade profitable you should implement a proper money management strategy and treat you’re trading as any other business. To learn about binary options trading, how to implement risk strategy and much more please subscribe below