Ultimate Oscillator Binary Options Strategy

The Ultimate Oscillator trading strategy for the binary options market utilizes the ultimate-oscillator.ex4 indicator to identify divergences in the market. By identifying a divergence opportunity, the indicator can be used to trade the Call/Put option in the binary options market.

Chart Setup

MetaTrader4 Indicators: ultimate-oscillator.ex4 (default setting), Line tool (default setting)

Preferred Time Frame(s):  5-minutes, 15-minutes, 30-Minutes, 1-Hour

Recommended Trading Sessions: Any time the signal appears

Assets Traded: any

Download

Download the Ultimate Oscillator Binary Options Strategy

Buy Call Trade Example

ultimate-oscillator-binary-options-strategy

STRATEGY

The strategy is to look for when the indicator starts to diverge from the price action. Usually the price action will eventually correct itself in the direction of the divergence. The key is to identify the divergence and this is done by using the line tool to trace the highs and lows of both price and indicator.

Once the divergence opportunity has been identified, the next step is to look for a reasonable signal of trade entry in the direction of divergence correction. Usually the trend line which connects either the price highs or lows can be used as a support (CALL) or resistance line (PUT) so that when price abuts on these lines, trades can be initiated.

CALL Entry Rules:

A CALL entry is made when the following indicator pattern is displayed on the chart:

  • The indicator line is forming higher lows when price is forming lower lows.
  • Extend the trend line plotting the price lows and once a reversal signal forms, initiate a CALL trade. See example above.

Expiry

The trade is set to expire at the closing price of the 3rd candle, counting from the entry candle. We can see from the chart above that there were 2 trade opportunities which would have ended in profit had they been taken.

Exit Strategy

It is possible to exit the trade before the trade’s expiry time by closing the trade manually using the Early Closure function on your broker’s platform. However, this will come with a reduced payout.

PUT Entry Rules:

A PUT entry is made when the following indicator pattern is displayed on the chart:

  • The indicator line is forming lower highs when price is forming higher highs.
  • Extend the trend line plotting the price highs and once a candle forms and is rejected at this price trend line, initiate a PUT trade. See example below.

ultimate-oscillator-binary-options-system

Expiry

The trade is set to expire at the closing price of the 3rd candle, counting from the entry candle. We can see from the chart above that there was a single trade opportunity which would have ended in profit had it been taken.

Exit Strategy

It is possible to exit the trade before the trade’s expiry time by closing the trade manually using the Early Closure function on your broker’s platform. However, this will come with a reduced payout.

Free Download

Download the Ultimate Oscillator Binary Options Strategy

About The Trading Indicator

The Ultimate Oscillator.ex4 indicator is an oscillator which can point out divergence signals as well as price extreme points. Reliance on this indicator however requires the trader to know how to apply the line tool to spot the divergence areas.

The key to trading the divergence is to make sure that the trader is able to look for the bounce of the candlestick on which the entry can be made on the trend line which shows the higher high or lower low on the chart. The divergence always corrects in the direction of the indicator.

Share Now!

Download All Binary Systems, Strategies and Indicators 100% FREE!

Download Binary Options Systems With Super Accurate And Fast Signals Generating Technology.

  • Download Free Binary Options Systems
  • Download Free Binary Options Strategies
  • Download Free Binary Trading Indicators