Binary Options Strategy With Trend Lines

Trend lines are a powerful analysis tool to trade classic up/down binary options. Here’s a great strategy on how to use them properly in combination with the Demarker oscillator indicator. We will be using Demarker to execute buy Call trades in oversold market conditions, or similarly, execute buy Put trades in overbought market conditions to give us the best chance for success.

Chart Setup

Binary Indicators: DeMarker_Bo
Analysis Tools: Trend Lines
Time Frame: 1 min and above
Trading sessions: Any

Tradable Assets
Currency pairs: Any
Commodities: Gold, Silver, Oil
Indices
Stocks

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Download the Binary Options Trend Lines Strategy

GBP/USD 5 Min Chart Example (Upward & Downward Trend Lines)

trend-line-binary-options-strategy

The chart above provided us with 3 profitable binary signals using trend lines. All signals expired in the money with 75% – 80% profit per trade (click the chart to enlarge).

Trading Rules

Buy CALL Option:

  • Draw solid downward trend line connecting the resistance points in the down trend – must be at least 40 candlesticks
  • Price closes above the downward trend line from below (down trend violation)
  • DeMarker_Bo oscillator rising back above 0.3 from below (oversold)
  • Buy Call Option at the open of the next bar

Buy PUT Option:

  • Draw solid upward trend line connecting the support points in the up trend – must be at least 40 candlesticks
  • Price closes below the upward trend line from above (up trend violation)
  • DeMarker_Bo oscillator rising back above 0.3 from below (overbought)
  • Buy Call Option at the open of the next bar

Expiry Time:
Give the trade some room to develop. At least 8 bars. Some examples:

  • 1 Min chart: 8 min expiry.
  • 5 Min chart: 40 min expiry.
  • Hourly chart: 4800 min expiry.
  • Daily chart: 8 days expiry.

As with everything, please experiment with the expiry time settings to find out what works best for your trading style.

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