There are so many binary options strategies that a trader can simply get lost among them. But at the same time, this is also a significant advantage, since among the many trading systems you can definitely find what you like.
Everyone can find a strategy for options that suits only him, depending on his character, thinking habits and many other factors. If you don’t like anything, then you can develop your own profitable binary options strategy.
If there is no suitable strategy, but the trader is smart enough to notice some patterns in the market, he can develop a strategy himself. And it is these strategies for binary options that can bring the most profit to the trader.
Binary Options Strategy on Market Imbalance
One of these strategies, which was developed quite recently and which allows you to make good money, is on the imbalance of the market. As we know, the price in the market directly depends on supply and demand, and the higher the demand, the higher the quote rises. But often there are situations when the number of people who want to buy does not coincide with those who want to sell. This is the market imbalance, on the signals of which you can earn decent capital.
In the image below, the red circles indicate the entry points and the opening of positions according to the strategy:
The solid red line on the chart is the EUR/USD price movement. The dotted green line is an indicator of technical analysis. This line shows how the current price is positioned relative to the price range as a whole. The horizontal blue line at around 80 shows the overbought level. The same line at around 20 is the oversold level.
How to use the strategy on the imbalance of the market?
Option 1.
The red line has gone beyond the blue line above the 80 mark. This means that the market is overbought, and that soon the price will change direction.
Option 2.
The red line went beyond the line below the 20 mark. This means that the market is oversold, and that the price will also soon change direction. This chart shows the Relative Strength Indicator, RSI. It also shows whether the market is overbought or oversold.
If the solid blue line has passed the 70% mark in the upward direction, then this indicates that the market is overbought, and the price will soon move down. If the blue line starts below the 30% mark, it means that the market is oversold, and the price will also soon change the direction of movement, that is, it will move up. Together, these two charts provide an excellent opportunity to determine which option to buy.
The Relative Strength Index (RSI) is
a technical analysis indicator that determines the strength of a trend and the probability of its reversal.
When to buy options according to the strategy?
Short options
So, the red line broke through the blue line in the upward direction, breaking the 80 mark. The RSI is above the 70% mark. All this means that the price will begin to fall, which means that you can buy an option “for a fall”.
Options to increase
If the red line has fallen below the blue line at 20, and the RSI has moved to the zone below 30, buy an option “to increase”. If the red line is between two blue lines, and the RSI is between 70% and 30%, then it is better not to touch the asset, since it is not clear where the price can move, and it is too risky to buy to work with the asset.
It is best to use this binary options strategy before the release of important news, when there is high volatility in the market. There is no need to think for a long time in such cases, the decision must be made as quickly as possible.
What chart should I use in my strategy?
Follow the link to the chart page for financial trading
- You need to choose a time period for trading,
- Next, select an asset to trade
3. Choose indicators for the RSI (3) and Stichastic (14,3,1) strategy
After we have set up a chart for trading, and understand the principle of trading according to a strategy based on market imbalance, we can start trading.
Strategy on the imbalance of the market at the broker Binomo
In order for the strategy on the imbalance of the market to bring you more benefits, carefully choose a broker who you can trust with your funds. We recommend trading on the site of one of the most popular brokers in our country, Binomo.
Among its advantages: a functional platform with advanced features (setting up a chart, adding indicators, a wide range of options, expiration dates, etc.). The company also offers its traders convenient withdrawal and deposit of funds, promotions and bonuses – all this makes binary options trading much more profitable. You can get acquainted with real reviews about the broker Binomo here.
A detailed review of the Binomo broker is here.
Go to the official website of the Binomo broker here.
In order to buy a
CALL
option in the Binomo trading terminal, follow these steps by going to the binomo.com website and preparing the option, indicating:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: UP
- Click the “buy” button and follow the results.
In order to buy
a PCI
option in the Finmax trading terminal, follow these steps by going to the binomo.com website and preparing the option, indicating:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: DOWN
- Click the “buy” button and follow the results.
Bonuses broker Binomo
Binomo constantly holds a lot of profitable promotions and offers that will be of interest to both options beginners and professionals. You can familiarize yourself with the broker’s promotions and take part in the most profitable ones for you here. By trading binary options with bonuses, the trader not only gets a good chance of a decent income, but also saves his budget and can get the most out of trading faster.
Binomo Weekly Tournament
Weekly free tournaments from Binomo are an opportunity to get real money as a gift without investing your own investments in the contest. Tournaments are held on Thursdays, traders with any experience who have a demo account with a broker can participate in them. The main prize, which is awarded to the winner with the highest profit during the tournament, are options in the amount of $150.
Take part in the Binomo tournament
Findings:
The new binary options strategy, making money on market imbalances, is quite easy to use and really profitable. The most important thing is to be aware of events, know the factors that can affect the market and cause its imbalance, and be able to react in time by buying the right option.
Since the strategy is based on technical indicators, the signals for entering a trade are clearly visible. Trading on 15 minutes, makes it possible to open trades frequently. For a strategy on market imbalance, you can use all assets, best of all currency pairs, for which news comes out.
Tagged with: Binary Options Strategies on the News • Binary Options Strategy • RSI • Stochastic
