Let’s be honest with ourselves, finding a long-term effective trading pattern that proves to be effective and consistent can be hard to come by this day and age. This issue solely is due to one reason and one reason alone which can be better explained by saying that the markets are constantly evolving. No one day is the same as any previous day, which is kind of the wonder within the investment industry. With this truth in mind it is imperative that we, as investors, take the time to backtest every trading pattern that we may come across with before actually implementing it with your live trading account. Which is why today we will be covering one of the most effective binary option trading patterns that has proven effective for myself time and time again.
Binary Options Pivot Pattern by Tim Lanoue
As many of you most likely insinuated by the title of this article we will be using a technical analysis based trading pattern that does require the use of pivot points. So having access to a reputable charting solution is essential; some recommended charting solutions that you could consider using would be MetaTrader4, MetaTrader5, thinkorswim, or Free Stock Charts. Moving forward, once you have your charting solution up and running then the next step that you need to complete would be to add the Pivot Point indicator into your charting solution. One note to keep in mind as well with the Pivot Point indicator would be that it changes automatically depending on the time frame you select so you won’t need to edit the settings.
Once you have completed that you can consider using one of two timeframes to watch your targeted asset. The first time frame would be a period of 15 minutes while the second time frame would be a period of 4 hours. When using a 15 minute time frame it is imperative to remember that we use an End-Of-Day expiry while on the other hand if we are using a 4 hour time frame then we need to make sure we use an End-Of-Week expiry time. The next step that needs to be completed now would be to select a currency pair as your asset of choice. It truly doesn’t matter which currency pairs you choose to invest with you just want to make sure that the trend of the asset is crossing pivot point levels.
In order for a signal to be generated we are waiting for only one occurrence to happen which would be the formation of a Shooting Star candlestick through a Pivot Point level. Once this has occurred then we place a PUT investment that is appropriate with the time frame.
This trading pattern doesn’t produce quite the volume of trades as some of the other patterns that I have posted on here but that doesn’t mean you can’t apply this pattern to 4 or 5 different currency pairs for more opportunities. Now one of the best advantages about this trading pattern would be that it doesn’t matter what time of day you choose to invest with, all you want to make sure of would be that the targeted assets are intertwining with Pivot Point levels.
As always if you guys have questions or feedback regarding this binary options trading pattern please feel free to leave your question and comments below and I will answer each and everyone of them! To conclude, for those of you who found this article beneficial and would like the opportunity to become part of something great then please feel free to become part of our Facebook Signals Group. We offer a friendly learning environment followed by many incentives that can make you great online income!