Binary Options Strategy Cheatsheets

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Example of a Binary Options Chart
Example of a Binary Options Chart

Introduction

Binary Options trading, while seemingly simple at first glance, can be a complex endeavor. Successful trading isn't about luck; it's about strategy. Many traders, especially beginners, find themselves overwhelmed by the sheer number of strategies available. This article provides a collection of "cheatsheets" – concise summaries of popular and effective Binary Options Strategies, designed to help you quickly reference key parameters and execution guidelines. These aren’t guaranteed profit machines, but frameworks to build upon, and require practice and adaptation. Remember to always practice with a Demo Account before risking real capital.

Understanding Binary Options Basics

Before diving into strategy cheatsheets, let’s quickly recap the fundamentals. A Binary Option is a contract with a fixed payout if the underlying asset's price is above or below a specified price (the strike price) at a specified time (the expiration time). There are primarily two types:

  • High/Low (Call/Put): Predict whether the asset price will be higher or lower than the strike price at expiration.
  • Touch/No Touch:** Predict whether the asset price will touch a specific price level before expiration.

These simple choices underpin all the strategies discussed below. Understanding Risk Management in Binary Options is *crucial*. Never risk more than you can afford to lose.


Strategy Cheatsheets

Here's a collection of strategy cheatsheets. Each section details a strategy, its core principles, indicators used, entry/exit rules, risk level, and potential profitability. All profitability is indicative and dependent on market conditions and individual execution.

1. The 60-Second Strategy

This is a popular strategy for short-term trading, aiming to capitalize on quick price movements.

60-Second Strategy Cheatsheet
Exploiting small, rapid price fluctuations.
60 seconds (or less)
Volatile currency pairs (e.g., EUR/USD, GBP/USD), commodities.
Moving Averages (5 & 10 period EMA), Relative Strength Index (RSI)
Buy a Call option if the 5 EMA crosses *above* the 10 EMA and RSI is below 30. Buy a Put option if the 5 EMA crosses *below* the 10 EMA and RSI is above 70.
Expiration at 60 seconds.
High - Requires quick decision-making and volatility.
70-90% payout (typical).
Best used during news events or periods of high volatility. Requires strict discipline.

2. The Trend Following Strategy

A more conservative approach, relying on established trends. This strategy utilizes Trend Lines and Support and Resistance.

Trend Following Strategy Cheatsheet
Identifying and trading in the direction of the prevailing trend.
5 minutes or higher.
Any asset with a clear trend.
Moving Averages (20, 50, 200 period), MACD (Moving Average Convergence Divergence).
Buy a Call option if price is above the 20, 50 & 200 period Moving Averages and MACD is crossing above the signal line. Buy a Put option if price is below the Moving Averages and MACD is crossing below the signal line.
Expiration at 15-30 minutes.
Moderate - Relies on trend continuation.
75-85% payout.
Use Candlestick Patterns to confirm entry signals.

3. The Range Trading Strategy

This strategy profits from assets trading within a defined range. Knowledge of Volatility is key.

Range Trading Strategy Cheatsheet
Identifying and trading within a price range.
5-15 minutes.
Assets trading sideways (low volatility).
Bollinger Bands, Support and Resistance levels.
Buy a Call option when price touches the lower Bollinger Band or support level. Buy a Put option when price touches the upper Bollinger Band or resistance level.
Expiration at 5-10 minutes.
Moderate - Requires accurate identification of range boundaries.
70-80% payout.
Avoid trading during major news events.

4. The News Trading Strategy

This strategy exploits price movements immediately following significant economic news releases. Understanding Economic Calendar events is vital.

News Trading Strategy Cheatsheet
Capitalizing on price volatility caused by news releases.
5 minutes - 1 hour (depending on news event).
Currency pairs affected by the news release (e.g., USD/CAD during a Canadian interest rate decision).
None specifically, but monitor pre-news price action.
Immediately after the news release, buy a Call option if the initial price movement is upwards, and a Put option if the initial movement is downwards.
Expiration at 5-15 minutes after the news release.
Very High - Extremely volatile and unpredictable.
75-95% payout (but high risk of loss).
Requires extremely fast execution and a deep understanding of the news event’s potential impact. Use a Binary Options Broker with fast execution.

5. The Pin Bar Strategy

This uses a specific Candlestick Pattern to identify potential reversals.

Pin Bar Strategy Cheatsheet
Identifying potential trend reversals based on pin bar formations.
15 minutes - 1 hour.
Any asset.
Candlestick Charts.
Buy a Call option if a bullish pin bar forms at a support level. Buy a Put option if a bearish pin bar forms at a resistance level.
Expiration at 30-60 minutes.
Moderate.
70-80%.
Confirm with other indicators like Fibonacci Retracements.

6. The Overbought/Oversold Strategy

This strategy relies on identifying when an asset is excessively bought or sold, anticipating a correction.

Overbought/Oversold Strategy Cheatsheet
Exploiting extreme market conditions.
15 minutes - 1 hour.
Any asset.
RSI (Relative Strength Index), Stochastic Oscillator.
Buy a Put option when RSI/Stochastic is above 70 (overbought). Buy a Call option when RSI/Stochastic is below 30 (oversold).
Expiration at 30-60 minutes.
Moderate.
65-75%.
Look for divergence between price and the indicator for stronger signals.

Important Considerations

  • **Money Management:** Implement a strict Money Management plan. Risk only a small percentage of your capital on each trade (1-5%).
  • **Broker Selection:** Choose a reputable Binary Options Broker with a secure platform and competitive payouts.
  • **Practice:** Utilize a Demo Account extensively before trading with real money.
  • **Emotional Control:** Avoid impulsive decisions driven by emotions. Stick to your strategy.
  • **Market Analysis:** Continuously analyze the market and adapt your strategies as needed. Consider using Fundamental Analysis alongside technical analysis.
  • **Record Keeping:** Maintain a detailed trading journal to track your performance and identify areas for improvement.

Advanced Strategies & Resources

These are just a few basic cheatsheets. More advanced strategies include:

  • **Straddle Strategy:** Profiting from high volatility with uncertain direction.
  • **Strangle Strategy:** Similar to straddle, but with different strike prices.
  • **Hedging Strategies:** Reducing risk by taking offsetting positions.
  • **Ladder Option Strategies:** Utilizing multiple strike prices for increased probability.
  • **Pair Trading:** Identifying correlated assets and exploiting price discrepancies.
  • **Japanese Candlestick Analysis:** Deep dive into reading candlestick patterns. Candlestick Patterns
  • **Elliott Wave Theory:** Understanding market cycles. Elliott Wave Theory
  • **Harmonic Patterns:** Identifying specific price patterns. Harmonic Patterns
  • **Volume Spread Analysis (VSA):** Analyzing price and volume relationship. Volume Spread Analysis
  • **Ichimoku Cloud:** A comprehensive technical indicator. Ichimoku Cloud
  • **Pivot Point Analysis:** Identifying potential support and resistance levels. Pivot Points
  • **Fibonacci Trading:** Utilizing Fibonacci ratios for price targets. Fibonacci Retracements
  • **Gartley Patterns:** A specific harmonic pattern. Gartley Pattern
  • **Butterfly Patterns:** Another harmonic pattern. Butterfly Pattern
  • **Crab Patterns:** Yet another harmonic pattern. Crab Pattern
  • **Three Drives Pattern:** A reversal pattern. Three Drives Pattern
  • **Supply and Demand Zones:** Identifying areas of potential price reversals. Supply and Demand
  • **Breakout Trading:** Trading when price breaks through key levels. Breakout Trading
  • **Scalping Strategies:** Very short-term, high-frequency trading. Scalping
  • **Martingale System (Caution advised):** A risky money management system; use with extreme caution. Martingale
  • **Anti-Martingale System:** Opposing the Martingale; increasing bets after wins. Anti-Martingale
  • **Time of Day Trading:** Exploiting specific times of day for certain assets. Time of Day



Disclaimer

Binary Options trading involves significant risk and is not suitable for all investors. The information provided in this article is for educational purposes only and should not be considered financial advice. Always conduct thorough research and consult with a qualified financial advisor before making any investment decisions.



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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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