Super strategy for binary options: Swing breakout! A simple strategy based on the breakdown of support and resistance levels.
The main part of trading methods works on the signals of technical indicators. However, the profitable system for binary options, which is covered in this article, allows you to earn on the simplest principles of price movement.
According to statistics, using this trading tactic, you can get 70-80 percent of trading positions out of 100% of concluded deals in plus.
The mechanism of the strategy
This super strategy for binary options works on fairly simple and at the same time highly effective principles of technical analysis - on breakdowns of support and resistance levels of quote swings.
If you pay attention to the trading chart of a financial asset, you will notice that after the breakdown of these levels, the quotes of the traded asset move intensively. This suggests that you can easily scalp quote movements with turbo options and still get a good income.
As noted above, when gaining trading skills using this system, you can get 7-8 profitable trades out of 10.
Read also - Effective Binary Trading Strategy: Four Line
How to trade with a strategy?
- 1. Open an account at the broker and replenish at least the minimum amount of 100$. You can start small too.
- 2. Next, open a chart with the desired traded pair and see if there are support and resistance levels closest to the price. They should be troughs and tops (swings) formed by the quotes of the exchange asset within the visibility of the trader.
- 3. Then you need to observe these swings and draw visually horizontal support and resistance levels.
After that, you need to wait until the quotes of the financial instrument break through one of the price swings in the downward direction (for the support level):
Or upwards (for a resistance level):
When such a breakout of a price swing occurs, it is necessary to fill a trading position in the direction of the breakout.
Important conditions for option trading according to trading tactics:
- Transaction execution time (expiration) – 60 seconds;
- Options for the system - "turbo options";
- Financial instruments for trading - absolutely any exchange-traded asset with a profitability level of at least 80 %;
- Trade the system in the daytime - from 10 am to 8 pm Moscow time, that is, if there is a trend in the market.