Monday, July 28th, 2014 by Tim Lanoue
Whether you are an experienced or novice trader, having trading pattern is a MUST if you want to achieve success with binary options. If I have learned anything over my years of trading it would be that having a game plan and a solid trading pattern will do you much better than not having one. Now sure you may get lucky by guessing a few times but I certainly would not rely on that trading pattern. Below is a simple yet highly accurate trading pattern that I have been composing these last few weeks.
For those of you not familiar with trend trading or not exactly sure what trends really are just keep reading. Trends are established when a continuation of price candles keep going in the same direction. Trend trading involves the use of spotting trends and trading what we call reversals, which is the origin of where the price of an asset changes directions. There are three types of trends you should familiarize yourself with. They are as follows: uptrend, neutral trend, and downtrend. Obviously an uptrend is a trend where price is heading higher, neutral is where price stays the same and a downtrend is where prices is heading downward.
Moving forward, the only indicator needed for this trading pattern would be a simple moving average. Simple moving averages are great indicators to use when trend trading because they plot the average price of that asset over the selected time period. In this instance, we are going to change our simple moving average time to a period of 3. Also, since this is a 10 minute trading pattern we want to make sure that the time frame that we are watching our asset is set to 10 minutes, and yes, and trading expiry times are set at 10 minutes as well. In the picture below you can see an example of how this trading pattern would be implemented.
If you couldn’t tell already, we place our trades when our blue moving average breaks and changes directions. However, my confirmation is if there was an upward or downward trend before the break. So take for instance, the first call trade that was traded, there was a well established downward trend occurring before the simple moving average changed directions. Once you see a trend has been established and see a break in the direction of the moving average line then we go ahead a place a trade for the opposite direction. As you can see we won all 5 trades. Assets that I would recommend when trading with this trading pattern would be any currency pair, I have yet to try this pattern out on other types of assets.
Trend trading is a very popular style of trading among novice and experienced binary options traders. This trading pattern has only a few weeks of testing behind it but overall it has proven to be very solid, I would estimate an average in-the-money percentage of 79%. Just make sure to follow the simple set up and trading pattern and you will be one step closer to achieving your dreams. As always guys, if you have any suggestions, comments or questions please feel free to leave them below!