5 reasons to trade the daily charts in binary options
To provide a baseball analogy, a hitter who normally maintains a batting average of. On the other hand, in that same span, he might hit. Continue to consider price action e. But without further ado, I will show you all of my second trades from Monday and I how I put all of the above into practice.
To avoid confusion, I will briefly describe each trade according to the number assigned to it in the below screenshots. On the first re-touch of 1. Similar to the first trade I took a put option on the re-touch of 1.
This trade also won. A third put options at 1. This trade lost, as price went above my level and formed a new daily high. Price formed a newer low at 1. I took a call option on the re-touch of 1. Basically the same trade as the previous one. Price was holding pretty well at 1.
On a normal move, I would take a put option there, but momentum was strong on the 2: Several put options almost set up on the 1. So my next trade was yet another call option down near where I had taken call options during my previous two trades.
I felt this was a safer move as just half-a-pip can be crucial in determining whether a second trade is won or lost. Call option down at 1.
However, the minute after this trade expired in-the-money, the market broke below 1. This trade was a put option at 1. Nevertheless, this trade did not win as price continued to climb back into its previous trading range. I decided to take a put option at the touch of 1. This trade might seem a bit puzzling at first given a new high for the day had been established and that momentum was upward. But by simply watching the candle it seemed that price was apt to fall a bit.
It was also heading into an area of recent resistance so once it hit 1. For this trade, the high of day initially made on the 2: I had intended to take a put option at this level on the 3: And then for maybe seconds, my price feed was delayed and by the time it the connection was recovered it was over a pip above my intended entry.
I did end up using the 1. Nadex even offers 5 minute binary options on some Forex pairs. Perspective can be everything when scanning the market for opportunities. Here we see a chart of the Nasdaq on the Nadex Exchange as of about The daily binary options are show on the right axis of the chart. These daily binary options expire at 4: At first glance it could appear that when looking at a 5 minute chart on a short term basis that we have traded above a recent consolidation area that the index had been trading in since the close on Thursday.
With just a few more days slid into view on the chart, you can see how things can change quickly. We just finished the largest 3 day move up in the markets since August as of Wednesday. Taking a quick moment to look at the recent market activity allows us to gain a perspective of the market moves possible.
Every trader has their own system, and some traders are profitable only looking for very short term signals. If you find yourself struggling to turn a profit then one thing to try would be experimenting with trading different time frames. You can experiment with a demo account on the Nadex exchange to see what kind of time frames they offer for their binary options, and if any of them suit your particular strategy.
He holds a Finance degree from Villanova University and got his Series 7 license at Tommy analyzes fundamental and technical signals to provide commentary for traders with a variety of backgrounds and strategies. You can watch Tommy O'Brien live every morning at 9 a. The information contained above may have been prepared by independent third parties contracted by Nadex.