Binary Options Triangle Trading Strategy

By | January 18, 2014

Saturday, January 18th, 2014 by Tim Lanoue

In today’s downward spiraling market it can be hard for an online trader to find a binary options strategy that can increase their winnings.  The implementation of a proper trading strategy is critical if you want to be successful at trading binary options or online in general.  Which is why the aim today’s article is to provide new or experienced traders a reliable trading strategy that I have had pretty good success with this past month.

 Rules and Fundamentals

 For those of you who are unfamiliar with the triangle trading strategy it is revolved mostly around price action.  To put it simply, price action is the summation of all the buy and sell orders at any given moment.  So whether the asset you are watching has an upward, neutral, or downward trend it is displaying price action.  However, when using this strategy we want to make sure we have a bearish trend.  The next rule is that the trader must learn how to identify the triangle pattern on the chart and know the right time to enter the trade.

 The Setup

The first step that needs to be taken is that we need to make sure a downward trend is in play, so once we see a bearish trend we then can trace the descending triangle.  In the picture below we have an example of how this strategy setup should look like.  We have confirmed there is a bearish trend so now we look for the bottom of two horizontal candles like seen below.  This horizontal line is the backbone and breaking point for our strategy, the ability to draw this line properly cannot be overemphasized.  The two candles that we base our backbone off us must be at the same closing level like seen below.  The next step is to draw a line pinning off the two highest candles in the trend, the yellow line below shows an example of how you would draw this line.  The last step we wait for is for our trend to break our horizontal line in a downward break, once it does we can place our put trade.

 

 

Expiry Times

One of the best advantages about this strategy is that it can be used on almost any time level since it focuses mostly on price action.  Ideally, you want to use a time frame of 15 minute and set trade expiry times for 5 to 10 minutes however I have seen pretty good success using it with longer time frames, the Triangle Trading Strategy is a commonly used 15 minutes binary options strategy.  Just make sure whatever time frame you choose to watch that you have your expiry time set for less time.

 Conclusion 

The triangle trading strategy is a very effective trading strategy to add to your binary options trading arsenal.  It may seem complicated at first but with a little bit of practice it is easy to master.  Although the financial markets may be declining slowly the binary options industry is booming and is the most popular form of online trading.  Utilize this strategy properly by following the rules, steps and expiry times I guarantee you a higher success rate. For more information on price action, charts and indicators visit the Binary Options Indicators page!

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