Arrows And Curves Binary Options Strategy

The ArrowsandCurves.ex4 indicator is a trend-following indicator which is able to follow the trend of the asset and point out areas where traders can buy and sell within the context of the trend.

The indicator is made up of two components and is so named because it shows “arrows” as well as curves. When adapted for the binary options market, it is possible to use the arrow settings to trade CALL and PUT options, based on the positions of such arrows on the “curves”.

Chart Setup

  • MetaTrader4 Indicators: ex4 indicator (default settings).
  • Preferred Time Frame(s): 15 mins, 30 mins, 1 hour.
  • Recommended Trading Sessions: Any time. Depends on when the indicator signal appears on the chart.
  • Traded assets: any

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Strategy

The indicator draws curves which move around price lows and price highs. The strategy is to identify where the arrow component of the indicator is displayed on the chart. These direction arrows (red for PUT and blue for CALL) are used in conjunction with the placement of the candles on the curves. Not all arrow signals are traded and when you look at the trade entry rules, you will understand why.

CALL Trade Example (click the image for full size):

Arrows&Curves_CALL

PUT Trade Example (click the image for full size):

Arrows&Curves_PUT

A PUT entry is initiated when the following is displayed on the chart:

  • The ArrowsandCurves.ex4 indicator shows red arrows.
  • The candle above which the arrow is located is either at the upper curve, or within 25% of the distance from the curve measured downwards.

In areas where the candle’s highest level is lower than 25% of distance from the upper curve to the lower curve, the signal is ignored. You can study the chart to see how the trade plays out.

Exit Strategy

Trades are meant to last for just two candles. Therefore, the trade length will depend on the time frame of the chart used. In this example, a 15 minute chart was used and therefore the expiry will be 30 minutes.

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About The Trading Indicator

The ArrowandCurves.ex4 indicator as well as the MA_BBands.ex4 indicator work synergistically. They must be used together as they cannot produce signals when used individually. The essence of using the 4 hour chart is to ensure greater reliability of the signals since the arrows have a tendency to repaint when used on smaller time charts.

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