Part №1: THEORY
And now let's move on to the theory. Before you understand what trading with the trend, it is necessary to clearly define what is, in fact, it is the trend. Under the trend in trading binary options (and not only there) understand the constant movement of the asset in one direction (up or down). Depending on the direction there are three kinds of trends: upward, downward and lateral. Consider all three examples on real screenshots from my experience with binary options trades.
The upward trend
Note: the asset is steadily growing. No, of course, on the chart downs there, and they are inevitable, but look: each successive rise is at a higher point than the previous one. And, most importantly, each recession also: lowering the level of the previous recession occurs. Consequently, we are dealing with a stable upward trend. Schedule of rates in this case may reach the level of support or even go beyond it, creating a new high.
How to put in this situation? Of course, to increase. With this stable trend, the trend will remain for the ascent, so that you can safely open the transaction.
"Catch" the trends are best using Living Graphics. On it, you can configure the indicator Linear Regression, and thanks to this indicator and you'll see the trend, and the trend for the interest you have assets. Of course, received at the disposal of such information, you will be able to make predictions on the binary options with much greater accuracy, leading to increased profits.
On this chart, you can see a clear and steady decline in the asset value. With regard to the ups and downs, everything is similar upward trend, only in reverse. Every drop goes to a lower level than the previous one. Each rise, on the contrary, corresponds less and less value. This trend (shown below) can also be considered a stable and predict that in the near future of the asset will decline.
How to put in such a case? Naturally, for a fall.
Open option - and get rewarded for care!
Working on a downtrend, it is convenient to use the Linear Regression indicator. As is the case with a rising trend, this indicator adds clarity and allows to predict the outcomes of transactions in the binary optsionahs great accuracy - of course, this has a positive impact on your income from trading.
Side trend (flat)
The direction of the trend is not a diagonal and a horizontal line. This means that the trend in one direction or another in the asset value is not available. What to do with this trend? Nothing. Better not to open the options, because the probability of a correct prediction is very low and the process is comparable to a coin toss. Accordingly, trading binary options with the trend should be in an up or downtrend, but not in the side. Side trend and many analysts do not consider "real" trend, and I am inclined to agree with them.
You can make transactions and against the trend, but it is not recommended for beginners to do this. Yes, many traders, for example, trade on the increase to the level of support and a fall - after the schedule concerns the line. This strategy can be considered justified, as it can help to make a particularly good deal, but the risk is too great to recommend inexperienced traders to operate in this manner.
Formulate the main advantages of trading binary options with the trend:
- It is simply. A trader can cope with the visual definition of a trend with minimal experience. For many other strategies, serious theoretical and practical training is needed - here it is only necessary to be able to analyze graphs a little. And the use of indicators and at all greatly facilitates the trader this task. He does not even have to know what the fundamentals are, and not what to watch for them. Of course, in order to achieve really serious success, you need to know as much as possible, and you will not be able to confine yourself to one type of trade. But to use this strategy as a training tool and an assistant in the first steps in the market of binary options is quite possible: moreover, it is for this purpose that is best suited.
- It's comfortable. In the previous section I have put it a little inaccurate: no "indicators" and "indicator". You will need only one indicator: Linear Regression. So get lost in the charts, values, lines simply unreal! Generally, binary options (unlike, for example, on Forex) allow to dispense a small amount of graphs and indicators. The attractiveness of transactions on options for beginners is largely due to just that.
- It can be combined with other strategies. It is possible to simultaneously trade on the news, use bezyndikatorny analysis and so on. In any case, a proven and robust trade with the trend you will not fail. In disputable situations refer to it simply signals, and it will do you good. Experienced traders usually use this strategy as an auxiliary tool, with which you can make the right decision in a difficult situation.
The fact that this strategy is simple-minded, some experienced traders even written into disadvantages. You can find tips to use this trade only during training, when working with a demo account, and to work with real money to develop more sophisticated and more robust strategy. I, however, can argue with such advisors: this strategy is not for me a key, but I quite often use it and achieve success. The main thing - to wait for the pronounced trend and time to make a deal, while the trend will operate. Then the strategy will bring success.
How the trend strategy look in practice?
Let's see. So, I'm starting to work, what helps me is my binary options broker. I recall that I use a broker uTrader (On its merits telling in the corresponding article on this site). I checked a variety of assets from among those with whom they work constantly. Please do not see anything worthy of attention, but then there is a pronounced trend! Here is a graph showing the value of the euro relative to the Canadian dollar.
It looks tempting, but you need to check the trend by analyzing objective data. As I wrote above, it is best to do it with the help of Live schedule binary options. Through linear regression indicator I can see that the trend is actually falling, and candles steadily dropped.
Yes, you can safely open the deal and hope for a good profit. What I'm doing, opening the binary option for a fall in the near time, the broker said. By the way, this strategy works with any timeframe but I prefer to stand long enough expiry, preferably not less than half an hour, but better 1 hours. I put on 100 dollars ...
... And get 77 dollars of net profit! That is 77 percent: impressive, is not it? And this is not the limit!
As you can see, torgovlyamozhet be very profitable - if you do not yawn and track important trends in time. Trading with the trend, beyond its simplicity, is very fond of my clients, especially those who are just beginning to learn binary options. Subsequently, they usually move on to more complex instruments or invent your own, but many people do not forget what strategy was the beginning of their success, and continue to work with it.
I remind you that if you want to learn about other strategies that I think really works, then this will help you my stuff "Binary Options Trading Strategies". Pay attention to another text: "Trading systems for binary options (full list)". This information is collected on a single page, a must for those who are just starting their way in the trading and wants as quickly as possible to get up to speed.