60 Second Strategy Guide

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60 Second Strategy Guide

Introduction

The 60 Second Binary Options strategy is one of the most popular, and arguably, most exhilarating trading methods available. Its rapid expiration time – just 60 seconds – offers the potential for quick profits, but also carries a significantly higher level of risk. This guide is designed for beginners and will cover everything you need to know to understand, implement, and potentially profit from this fast-paced strategy. It is crucial to understand that this strategy, like all trading strategies, requires discipline, practice, and a solid understanding of Risk Management before deploying real capital.

Understanding 60 Second Binary Options

Unlike traditional binary options which can expire in minutes, hours, or even days, 60 second options expire within one minute of the trade being opened. This means your prediction – whether an asset’s price will be higher or lower than the current price at expiration – must be correct almost immediately.

  • Payouts:* Payouts on 60 second options are generally lower than longer-term options, typically ranging from 50% to 75%. This lower payout reflects the increased probability of a successful trade due to the short timeframe, but also the higher risk.
  • Assets:* 60 second options are commonly available on major currency pairs like EUR/USD, GBP/USD, USD/JPY, and indices such as the S&P 500. Commodities like Gold and Silver are also frequently offered.
  • Volatility:* This strategy thrives on volatility. Small price movements can result in substantial percentage gains (or losses) due to the short time frame.

Core Principles of the Strategy

The core principle behind successful 60 second trading is identifying extremely short-term price fluctuations. This requires a focus on technical analysis, specifically indicators that react quickly to price changes. Here’s a breakdown of the key principles:

  • Trend Following:* While counter-trend trading is possible (and discussed later), starting with trend following is often easier for beginners. Identify a clear uptrend or downtrend on a very short timeframe chart (e.g., 1-minute or 2-minute chart).
  • Momentum Indicators:* Utilize momentum indicators to confirm the strength of the trend. Relative Strength Index (RSI) and Stochastic Oscillator are particularly helpful.
  • Support and Resistance:* Briefly identifying nearby Support Levels and Resistance Levels can help determine potential turning points.
  • News Events:* Major economic news releases can cause significant price swings. 60 second trading can be profitable during these events, but it’s also extremely risky. See Economic Calendar for upcoming releases.
  • Discipline:* This is paramount. Stick to your trading rules and avoid impulsive trades.

Popular 60 Second Strategies

Here are several 60 second trading strategies, ranging in complexity:

1. RSI Overbought/Oversold Strategy

This is a beginner-friendly strategy based on the RSI indicator.

  • Setup:* Use a 1-minute chart. Set the RSI period to 14 (the default is a good starting point).
  • Buy Signal:* When the RSI drops below 30 (oversold), indicating the asset may be undervalued and poised for a bounce, place a CALL option.
  • Sell Signal:* When the RSI rises above 70 (overbought), indicating the asset may be overvalued and due for a correction, place a PUT option.
  • Expiration:* 60 seconds.
  • Risk Management:* Only trade assets with clear momentum. Avoid trading during periods of low volatility.

2. Moving Average Crossover Strategy

This strategy uses two moving averages to identify potential trend changes.

  • Setup:* Use a 1-minute chart. Apply a 5-period Exponential Moving Average (EMA) and a 10-period EMA.
  • Buy Signal:* When the 5-period EMA crosses *above* the 10-period EMA, place a CALL option.
  • Sell Signal:* When the 5-period EMA crosses *below* the 10-period EMA, place a PUT option.
  • Expiration:* 60 seconds.
  • Risk Management:* Confirm the crossover with volume. A strong volume increase during the crossover strengthens the signal.

3. Bollinger Bands Breakout Strategy

This strategy looks for price breakouts from Bollinger Bands.

  • Setup:* Use a 1-minute chart. Apply Bollinger Bands with a 20-period moving average and 2 standard deviations.
  • Buy Signal:* When the price breaks *above* the upper Bollinger Band, place a CALL option. This suggests strong upward momentum.
  • Sell Signal:* When the price breaks *below* the lower Bollinger Band, place a PUT option. This suggests strong downward momentum.
  • Expiration:* 60 seconds.
  • Risk Management:* Be cautious of false breakouts. Look for confirmation with other indicators, such as volume.

4. News Release Strategy (High Risk)

This strategy attempts to capitalize on the immediate price impact of news releases.

  • Setup:* Monitor an Economic Calendar for high-impact news releases (e.g., Non-Farm Payrolls, interest rate decisions).
  • Trading:* Immediately after the news release, observe the price action. If the news is positive for the asset, and the price begins to move upwards, place a CALL option. If the news is negative, and the price moves downwards, place a PUT option.
  • Expiration:* 60 seconds.
  • Risk Management:* This is extremely risky. Use very small trade sizes. Consider avoiding this strategy until you have significant experience. Volatility will be extremely high.

5. Counter-Trend Strategy

This strategy aims to profit from short-term corrections in a strong trend.

  • Setup:* Identify a clear, established trend on a 1-minute or 2-minute chart.
  • Buy Signal (in a Downtrend):* Look for oversold conditions (e.g., RSI below 30) or a brief price bounce. Place a CALL option, anticipating a temporary upward correction.
  • Sell Signal (in an Uptrend):* Look for overbought conditions (e.g., RSI above 70) or a brief price dip. Place a PUT option, anticipating a temporary downward correction.
  • Expiration:* 60 seconds.
  • Risk Management:* This strategy requires precise timing. The trend is your enemy, so the correction must be identified quickly. Use tight stop-losses.
60 Second Strategy Comparison
Strategy Difficulty Risk Level Key Indicators
RSI Overbought/Oversold Easy Medium RSI
Moving Average Crossover Easy Medium 5-period EMA, 10-period EMA
Bollinger Bands Breakout Medium High Bollinger Bands
News Release Strategy Hard Very High Economic Calendar, Price Action
Counter-Trend Strategy Medium High RSI, Price Action

Risk Management for 60 Second Options

Due to the high risk associated with 60 second options, robust risk management is essential.

  • Trade Size:* Never risk more than 1-2% of your trading capital on a single trade. 60 second options are prone to losing streaks.
  • Stop-Losses:* While not directly applicable in binary options (you either win a fixed payout or lose your investment), mentally consider a "stop-loss" level. If your analysis is invalidated quickly, avoid taking further trades.
  • Diversification:* Don’t put all your eggs in one basket. Trade different assets to spread your risk.
  • Demo Account:* Practice extensively on a Demo Account before trading with real money. This allows you to test your strategies and refine your skills without risking capital.
  • Emotional Control:* Avoid revenge trading or chasing losses. Stick to your trading plan.

Tools and Resources

  • Trading Platform:* Choose a reputable binary options broker that offers 60 second options and a user-friendly platform.
  • Technical Analysis Software:* TradingView is a popular platform for charting and technical analysis.
  • Economic Calendar:* Forex Factory and Investing.com provide comprehensive economic calendars.
  • Binary Options Education:* Investopedia offers a wealth of information on binary options and trading concepts. See Binary Options Basics.

Advanced Considerations

  • Volume Analysis:* Confirming signals with Volume Analysis can significantly improve accuracy. Increasing volume during a breakout or crossover suggests stronger momentum.
  • Price Action Patterns:* Learning to identify short-term Candlestick Patterns can provide additional confirmation signals.
  • Correlation:* Be aware of correlations between assets. If two assets are highly correlated, trading both simultaneously may increase your overall risk.
  • Time of Day:* Volatility levels change throughout the day. Certain times (e.g., during major market open hours) may be more suitable for 60 second trading.

Conclusion

The 60 Second Binary Options strategy can be a rewarding, but challenging, trading method. Success requires a solid understanding of technical analysis, disciplined risk management, and a willingness to learn and adapt. Start with a demo account, master the fundamentals, and gradually increase your trade size as your confidence and profitability grow. Remember that consistent profitability requires dedication and ongoing education. Explore related strategies like High/Low Strategy and Boundary Options Strategy to broaden your skillset. Always prioritize responsible trading practices and never invest more than you can afford to lose. ```


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⚠️ *Disclaimer: This analysis is provided for informational purposes only and does not constitute financial advice. It is recommended to conduct your own research before making investment decisions.* ⚠️

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