Trend Prediction Binary Options Strategy

The Trend Prediction binary options trading strategy is a strategy that utilizes the todaytrendprediction.ex4 indicator to identify opportunities when price action will either reverse on a trend line to form a new trend, or break the trend line to continue the existing trend. This strategy can therefore be used to trade the Call/Put option.

Chart Setup

MetaTrader4 Indicators: todaytrendprediction.ex4 (default settings)

Preferred Time Frame(s): 15 minutes chart only.

Recommended Trading Sessions: Any time the signal appears

Currency Pairs: USD pairs.

Download

Download the Trend Prediction Binary Options Strategy

Buy Call Trade Example (Click the image for full size)

trend-binary-options-strategy

STRATEGY

The strategy is to look for the green and red lines which are drawn by the indicator as support and resistance lines. As price approaches these lines, arrows will appear to point the direction to which price action will move. The trader can then trade according to the arrow direction as indicated in the strategy rules.

CALL Entry Rules:

A Call option is initiated when the following pattern is displayed on the chart:

  • Either a green or red line appears to indicate a support or resistance. There is no bias as to which colour appears at support or resistance.
  • A BLUE arrow which points diagonally upwards is an indication that price will head upwards.
  • If the price action is just above the red/green line when the arrow appears, open a CALL trade when the price pulls back to the trend line in view. Do not trade if price is below the lines when the arrow appears.

Expiry

Set the trade to expire at the close of the 3rd or 4th candle. This chart example was shown from the 15 minute chart. Therefore the expiry time should be 45 minutes or 1 hour.

Early Exit Strategy

The trade can be closed early if the trade is in profit territory. This will give a reduced payout.

PUT Entry Rules:

A PUT option should be initiated if the following is seen on the charts:

  • Either a green or red line appears to indicate a support or resistance. There is no bias as to which colour appears at support or resistance.
  • A RED arrow which points diagonally downwards is an indication that price will head downwards.
  • If the price action is just below the red/green line when the arrow appears, open a PUT trade when the price pulls back to the trend line in view. Do not trade if price is above the lines when the arrow appears.

trend-binary-options-system

Expiry

Set the trade to expire at the close of the 3rd or 4th candle. This chart example was shown from the 15 minute chart. Therefore the expiry time should be 45 minutes or 1 hour.

Early Exit Strategy

The trade can be closed early if the trade is in profit territory. This will give a reduced payout.

Free Download

Download the Trend Prediction Binary Options Strategy

About The Trading Indicators

The todaytrendprediction.ex4 indicator is a good indicator but sometimes produces conflicting signals. It can therefore not be used as an automated trading indicator. Rather it should be used manually so that inaccurate signals can be filtered out by sight

Share Now!