What is the best 60 second binary options strategy for traders? In this guide, we explore the strongest techniques available today. Discover key insights to help you make the right choice.
60 second binary options are an ideal solution for any traders looking to stay active and achieve quick results. One of the major benefits they offer is their speed — with options expiring in just one minute, traders have the capacity to perform dozens upon dozens of daily trades.
But one common question is “which 60 second binary options strategy should I choose?”. This is difficult to answer. And, to be fair, the entire process of 60 second trading is a challenge in itself: your ability to react quickly upon seeing the signal makes a major impact on your success.
Fortunately, the best 60 second binary options strategy for traders today makes it all a little easier and more effective.
Let’s start by discussing Bollinger Bands.
In case you don’t know, Bollinger Bands are a form of statistical chart utilizing a formula Mr John Bollinger advanced back in the 1980s. These charts characterize the volatility and prices of certain commodities or financial instruments over periods of time.
For traders, Bollinger Bands are a huge help in making effective trading choices or performing technical analysis.
The strategy we’re discussing here has been based around Bollinger Bands, though it employs a number of additional indicators too. It’s easier to grasp than it may appear at first, though some experience in Bollinger Bands can prove helpful when you’re just getting started with it.
Perhaps the most effective way to start is by using the hourly charts to set trends. This can be done in various ways, but you should select a market which is trending well currently.
The hourly chart is ideal for pinpointing short-term trends, but only trade the uptrend on the hourly if the daily’s trending up. Likewise, if the daily chart shows downward trend, only go for the downtrend in the hourly chart too. Lines should be drawn in red on this chart.
Start with a daily chart and search for a trend you like the look of, whatever it may be. Daily charts work well for spotting trends running for a shorter term and any areas of resistance or support.
It’s recommended to utilize a candlestick set-up, look for trend, and confirm using trend lines such as Stochastic. Trends in the daily chart may be up, sideways, or down — be prepared for any of them. Keep all lines marked on this blue.
Next, you want to cast your eyes to the hourly chart and look for your trade of choice. Many traders prefer to use MACD, stochastic, and/or trend lines when performing this part of the process.
Furthermore, you should draw trend, resistance, and support lines as you see fit. Why? Because they’ll make it easier to identify your entries and to help you avoid those trades carrying more risk of a loss.
It’s worth remembering the one minute chart, too, which is where you only utilize Bollinger Bands. When a trade has been marked as up, be sure to trade bullish signals for down trends.
To reiterate: this strategy can appear complex at first, but once you really get started, you’ll find this 60 second binary options strategy simpler than expected.
<>While Bollinger Bands put out a variety of signal types, the crucial one in this strategy is the bands narrowing or widening.
Why? Because when bands widen, this is a signal of market movement, particularly an increase.
Narrowing bands represent an asset lacking volatility and failing to show as much movement as it might when the bands become wider.
In this strategy, the pre-signal is the bars widening, and so you should only trade when the bands are wide, as the market will be moving. Be sure to watch the bands: they will form a vital pattern over time, which moves along with the important underlying asset itself.
As the bands start to widen following a run of narrow-band trading, this tells you to watch out for relevant signals. You will take entry when a signal verifies an underlying trend as presented on hourly charts — and it’s here that good experience can make a positive difference.
Bollinger Bands send out many varied signals without consideration of trends, and, as a result, you’ll find that some personal interpretation is necessary to pinpoint the right signals for you.
To this end, many traders make a habit of using trend to spot some of the signals produced. Maybe you’ll want to do the same.
Here are some key points to remember:
When a price moves up and touches a Bollinger Band, this can typically be considered a signal that the relevant trend is set to continue in the same direction
Any candlestick signals which occur on a band can be regarded as confirmations of that band, so do be aware of them
If price overtakes a band, this can be interpreted as a signal that prices are at an acceptable peak, and will probably start to recede soon
Lower bands typically act as support during an uptrend, while the upper band serves as resistance with downtrends — try to learn the difference
Signals confirming resistance, support, or trend while confirming any of the Bollinger Band lines should be recognized as being strong
If bands start to narrow following a time of widening, this signifies the trend has begun to slow, which means the asset could enter into a time of consolidation — it might even correct or pull back
As mentioned earlier, this 60 second binary options strategy may seem intimidating to start with, especially for traders in the early stages of their career. But it’s well worth trying and sticking to in the long term. Follow the tips above to see how this strategy works for you.