All Woodies CCI v1.0 Binary Options Strategy
The All Woodies CCI binary options trading strategy is a strategy that utilizes the All Woodies CCI v1.0.ex4 indicator to pick out specific conditions when the market will either be overbought or oversold within a given time frame.
It can also be used as is shown in this example, to pick out reversal trade conditions on specific time frames. Time frame trading is one of the hallmarks of successful binary options traders.
MetaTrader4 Indicators: All Woodies CCI v1.0.ex4 (the colour settings and the thickness of the indicator bars can be adjusted for better visualization).
Preferred Time Frame(s): Any time frame is traded, depending on where the signal appears.
Recommended Trading Sessions: Any time the signal appears on the charts.
Currency Pairs: Any. Other assets can also be traded.
Buy Call Trade Example (Click the image for full size)
The strategy is to trade the candle which bounces off the horizontal line traced on the grid to correspond to when the All Woodies indicator crosses the zero line from one side to the other. Tracing the lines on which the strategy is based is crucial for trade success.
The first step is to look at the chart for a time frame where the indicator is crossing from negative to positive and vice versa. The time chart which is displayed on the indicator window with this characteristic is then opened.
A grid line is drawn from vertically from the point where the indicator crosses the zero line to the candle in view. A horizontal line (shown in blue) is then drawn across the grid line to match a low (for CALL setups) or a high (for PUT setups).
Call Entry Rules
A Call trade setup occurs when the following is seen on the chart:
- Select a time frame where the indicator shaded bars are crossing from negative to positive. For this example, this is seen on the 1-minute chart.
- Draw a vertical line from the zero point on the indicator window (where price is crossing from negative to positive) upwards to meet a candle.
- Next, draw a horizontal line to cut across the vertical line, and also across any area where two candles have formed lows that can be traced with this horizontal line.
- Allow the next candle that forms to retrace to the horizontal line, then enter a CALL trade. If this next candle’s opening price is right at the horizontal line, then you can also initiate a CALL option without waiting for a retracement.
The expiry for this trade is 2 candles, which for this chart is equivalent to 2 minutes. So you can actually trade this setup using the 2-minute short term binary option on whatever platform where this is listed.
Put Entry Rules
A PUT entry setup occurs when the following is seen on the charts:
- Select a time frame where the indicator shaded bars are crossing from positive to negative. For this example, this is seen on the 15-minute chart.
- Draw a vertical line from the zero point on the indicator window (where price is crossing from positive to negative) upwards to meet a candle.
- Next, draw a horizontal line to cut across the vertical line, and also across any area where two candles have formed highs that can be traced with this horizontal line.
- If the next candle’s high is at the horizontal line, initiate a PUT option. Otherwise, you can allow the next candle that forms to retrace to the horizontal line, then enter a PUT trade.
The trade should last only 2 candles, which is equivalent to 30 minutes for this example.
About The Trading Indicator
The All Woodies CCI v1.0.ex4 indicator requires some augmentation using the vertical lines that will be traced prior to executing the trade. It is therefore suited mostly for intermediate or advanced binary options traders.