Follow The Trend Binary Options Strategy
Trend lines are one of the most valuable and effective tools for a binary option trader. Traders who learn how to apply trend lines for shaping diagnosis of the market patterns are likely to rely a lot less on the many technical indicators that are frequently used. It can not come as a big surprise an uptrend is a case where the prices keep getting higher highs and also higher lows.A downtrend is a situation where there are lower highs and lower lows.
The power of trend analysis is its ability to predict into the future. Keep in mind that the trend lines are not indicators, and they are not lagging. Trend lines are in fact actual maps that define the boundary optimism and fear.
In the Graph below is shown a very good example of downtrend line. You can see EUR/USD price fluctuations in 7 hour time and as you can see the price is getting lower and lower.
Trends like this might be very profitable, if you know the right strategy.
This is how you draw an downtrend line (Bearish trend)
- Find the recent high
- Draw a line next to the immediate lower high.
- Extend the line to the right end of the chart beyond the latest date and into the future
1. Find a clear uptrend or downtrend line in any market available in your binary option broker or here
2. Choose the expiry time of your trades. 1-2 hours are the best, lower expiry times may be risky.
3. Place your bet following trend. After it expires place another bet on the same direction.
Advantages Of This Strategy:
- Very profitable if used correctly
- Can be used in a small period of time (1-2 hours)
- Easy to understand and use. Good for begginers
Disadvantages Of This Strategy:
- If the rate goes against your prediction you loose all your bet
Tips For Bigger Profits
- Play for minimal stakes at the beginning
- Hold on to strategy – turn off your emotions
.You can mix this stratgey with martingale strategy for bigger profits