5 Day Breakout Binary Options Strategy
This binary strategy takes advantage of the 5 day high-low price. We simple wait for a breakout above or below the 5 day high/low price and then trade accordingly. We will be using a special indicator that draws the high low price automatically on the chart. So, you don’t need to calculate anything nor draw any breakout lines. We just want to keep it very simple and focused.
Binary Indicators: breakout_BO
Time Frame: 5 min
Trading sessions: Any
Currency pairs: Any
Commodities: Gold, Silver, Oil
EUR/USD 5 Min Chart Example (Open PUT Call Option)
EUR/USD broke below the 5 day low price. We opened buy PUT order with 20 min expiry time. As you can see in the chart above, the option expired in the money for a 79% profit.
Buy CALL Option:
- Asset price closes above the 5 day high price
- Buy Call Option at the open of the next bar
Buy PUT Option:
- Asset price closes below the 5 day low price
- Buy Put Option at the open of the next bar
4 bars expiry (20 min)
As with everything, please experiment with the expiry time settings to find out what works best for your trading style.