Support and resistance levels
Support and resistance levels are important levels that traders use to determine the strength of the market – buyers or sellers.
Resistance
When moving upwards, the price rests on the “ceiling”, i.e. reaches the point at which the movement stops and a reversal occurs. At this point, sellers enter the market in order to seize the advantage from buyers and stop the price increase. When this happens, the upward price movement will stop.
The resistance level can be used to enter the market with a short position, or as a profit level to close an open long position.
Support
Support is the price level at which buyers enter the market. When moving down, the price rests on the “floor” when buyers seize the advantage from sellers and stop the price decline.
When this happens, a support level is formed, which can be used by analogy with resistance, with the difference that at this level you should open a long position and close a short position.
Determination of support and resistance levels
To determine these levels, you need to find the points at which the price movement constantly stops. It is at these points that either buyers or sellers enter the market.
Meaning of support and resistance levels
When trading binary options strategies, traders always do additional analysis. When we study the charts, the shapes and shapes of Japanese candlesticks are very important. However, with short term trading of 5 to 15 minutes, support and resistance levels are important and show the best results.
The levels show the price movement in the channel, these are more reliable signals than the mini-patterns of Japanese candlesticks. The readings of pin bars, hammers and other candlesticks are not clear on the 60 second chart for options trading.
Trade with the best binary options brokers
Thus, an important point in trading is to detect the price movement of an asset in a channel, with the boundaries of the support and resistance line. If you were able to identify the channels, you need to be prepared to change the direction of movement of the option price in the opposite direction after touching the border. Basically, the movement in the channel for 60 seconds is determined by the rebound from the support and resistance lines.
When trading in the market, you can often see similar situations indicated in the image, and for binary options traders, this is a real gift. Each arrow on the charts shows an exact rebound from the channel boundary lines, allowing you to open a trade and get a good income.
Trading features
This binary options strategy is called “Strategy of levels”, it is suitable for trading on 60 second binary options. Before you start trading on the strategy, be sure to look at the news, trading before the news, you can enter a very volatile market, which will affect the breakdown of the channel by the price of the asset.
Strategy by levels at the broker Olympus Trade
For the most productive work on this strategy, we advise you to trade in the reliable terminal of the broker Olympus Trade. A modern trading platform offers you all the necessary functionality for work: a convenient personal account, analytics and transaction history, an expanded set of indicators, a choice of options and expiration (from a minute to an hour), current market news, training materials.
You can get acquainted with real reviews of traders about Olympus Trade here. You can see what the workspace of the trading platform looks like in the image below.
A detailed review of the Olymp Trade broker is here.
Go to the official website of the broker Olymp Trade here.
In order to buy a
CALL
option in the Olymp Trade trading terminal, follow these steps by going to the olymptrade.com website and preparing an option by specifying:
- 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 Olymp Trade trading terminal, follow these steps by going to the olymptrade.com website and preparing an option, indicating:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: DOWN
- Click the “buy” button and follow the results.
Traders’ reviews about Olympus Trade
Bonuses of the broker Olymp Trade
The official website of Olympus Trade constantly conducts profitable promotions for traders. Participation in bonuses increases your chances of earning decent money without investing personal capital. Now you can take advantage of the starting bonus, which will double the deposit. The amount of the bonus depends on the amount deposited (according to the terms of the promotion).
Findings
Thanks to the ADX indicator , you can get confirmation that the market is not following a particular trend. By trading with this strategy, you will get high statistics of profitable trades. It is worth conducting a series of tests to determine the risks and increase profits.
Tagged with: 60 Seconds Option Strategy • Binary Options Strategy
