Sunday, September 29th, 2013 by Tim Lanoue
The intention of this article is to provide traders with an advance Eur/Usd binary options trading strategy that may allow you to profit more from trading online down the road. One reason why we choose to trade the Eur/Usd asset would be because it is perhaps the most traded currency pair today. Due to the assets high liquidity and good track record this asset is the most reliable providing us with the best chance to profit more in the long run. The Eur/Usd asset became popularized by Forex trading, which is a form of trading that deals solely with currency pairs and pip spreads. Luckily for us Forex trading is slowly degrading while binary options trading are reigning supreme. When it comes to trading binary options one does not have to worry about beating a pip spread or using advance leverage techniques. One must merely predict whether the price of an assets value will go up or down by the end of the expiry time. This strategy falls under two steps requiring the use of a couple trading indicators along with two other sentiments relating to the trend of the asset.
If you are unfamiliar with charting solutions you can visit Freestockcharts.com and use their charting interface for free. When you are looking at our graph make sure your asset is on the Eur/Usd asset and go to indicators and add the Parabolic SAR indicator. Next go to your indicator tab again and add the MACD indicator, this simple is the momentum indicator. The settings for these indicators are default at the Free Stock Charts website so you don’t have to change their settings.
There are two ways to apply this strategy and that would be if there is a bullish or bearish trend. First we will go over the rules for the bearish trend. As you can see in the picture below we have the Eur/Usd asset and it is showing a bullish (upward) trend. Since the Eur/Usd is showing signs of a bullish trend we wait until the Parabolic SAR indicates a good buy zone like it has in the picture below. The last thing we check is the MACD, if the MACD is positive or crosses from negative to positive then you are good to place your buy trade.
Lastly we have the bearish trend. Below you will see a picture of the Eur/Usd asset displaying a down trend. The first thing we have to do is wait for a good sell zone to show up like it has, next we wait for the MACD to present itself from going in a positive to negative direction or in a continuous downward direction. Lastly, we wait for our Parabolic SAR indicator to indicate a good sell zone, once all the above are met then you can place your trade accordingly.
If you have any questions please feel free to post a comment below. If you are new to binary options and are unfamiliar with trading indicators please feel free to visit the tab labeled All Binary Options Indicators.