Rules you can't do without. Trading with the trend in binary options: methods and strategies What does it mean to trade with the trend

Hello dear colleagues! Globa Danila is with you again. As I have written many times before, trend trading is one of the most attractive strategies in trading. And today you will be convinced of this.

Today's article will be a continuation of the publications of my transactions on trading strategy" ". This is a reliable system on which I have earned a lot of money and trade on it now. For those who are not in the know, I advise you to first familiarize yourself with its rules, and then proceed to study the transactions. and you can see other trades with trend trading.

So, let's get straight to the point, I will not pour water.

1.Planning a position for trading with the trend.

a) the trading situation. The price approached the support of the ascending channel for the 3rd time.

b) Features. There is a reverse divergence on the bounce, but the price has already gone far from the support touch point. Therefore, it is too late to bet on the rebound. Initially, the channel had a larger angle (gray channel). Then it changed (blue channel) and it became clear that the trend was weakening. The previous touch was accompanied by a classic false breakout, after which the price returned to the figure. Having made a breakthrough in 25p., the price returned to the support line again. In this regard, the probability of breakdown has greatly increased. Also, a triangle has formed in the channel (red dotted line), which indicates the destruction of the channel.

c) Entry signal. The price returned to the support level and broke it again.

d) Conclusion. We have a weakening trend. A true breakdown of the trend channel is very likely.

e) Placement of orders. to sell at the level of the previous false breakout. Stop at the local maximum formed after the rebound. There, the fractal has not yet been fully formed, but by the time our order is activated, it will be completed. Therefore, we put a stop on the supposed fractal.

2. Trading with the trend.

1) Breakout order worked! We select TF management. The H1 bar closed behind the breakdown level. Which indicates the possible truth of the breakdown. On M30, early divergences are visible on all 3 indicators to stop the breakdown.

In this regard, we put orders for a reversal. Entrance at the level of the red line. Stop at the local low of the breakdown. We wait…

If the price enters the figure again and breaks through the M30 channel, then a reversal will occur. A reverse diver on H1 can help him.

2) There are 2 closed and 1 open bars behind the breakout line. Breakout around 30p. Most likely, it is not false. However, the market situation is uncertain. There are many return divers. The price is at the support level of the M30 channel and could not break through it with a swoop. A reversal is still possible. Now, if we break this channel down, then, most likely, the trend will go. If it reverses, let's hope that the price will rebound from the levels of the H1 and M30 channels. The BU condition has not been reached. We leave the stop at the same level, under the protection of two channels.

We are waiting for the possibility of setting the BU and the development of the trend.

3) We have a return to the support of the former channel. There are formed fractals at this level on M5 and M15. According to the rules, the first action with a stop is either moving it to breakeven, or to a fractal formed when the price returns to the level. There is no BU level on any TF. And we are looking for fractals after a rollback on TF M1-M30, if they are formed during the American session on important news. Here is Stanislav's quote from the book: It is only important to take into account that often after a channel breakout (not a false one), the price goes very rapidly by 100 points (especially in the American session, after the exit important news), therefore, these fractals should be caught on smaller screens (starting from M30, and up to M5, or even M1).» Our fractals were formed not at the American session, and even more so, not on the news. In this regard, we skip such fractals and wait for them to appear on the TF analysis. In this case it is H1. There is no return and fractal yet. We wait…

4) Today is Monday. An hour later at 15:00 Ivey PMI / Ivey Purchasing Managers Index. This is the only news for today. I hope there will be a flat in front of them ... There is no flat! The news passed without our participation.

Meanwhile, the price is consolidating in the old downward channel M30. Some figure is formed within its limits. Most likely, this is a horizontal channel. In its form, a correction of the started countertrend is presented, as well as consolidation as one of the ways to confirm the truth of the breakdown. We are waiting for a breakdown down and continuation of trading with the trend...

5) At night, TF M5 created a completed opposite fractal (marked with a tick) to transfer the stop to the BU. Unfortunately, we did not have time to do this and the fractal was broken. There was also an opportunity to put an addition, but RSI and osma gave a diver, so it was worth skipping it.

6) Missed opportunities on the M5 dictate to us to choose an older control TF. Where there were no such options. For example, M15. We see a formed and confirmed horizontal channel. There was a false break down, after which the price returned to the figure again and entered the unprofitable zone.

7) For a long time there is no opportunity to enter the BU. This is bad! Usually, if the entry is correct, the price quickly goes in the right direction and the opportunity to set the BU appears almost immediately. There is an opinion among traders that if the price does not go in the right direction within 2 days, then this will not happen. In such a situation, the position is closed even at a loss. As part of our strategy, such a way out is not provided and we are doing everything to the end.
The market continues to consolidate in a horizontal channel. Completed fractals appeared on the hour in the unprofitable zone. I'm thinking of moving the stop to the upper border of the channel, just above the hourly counter fractal.

Let's think about how to proceed. We have a horizontal channel. It can be punched in any direction. Unfortunately, the released news did not determine the direction. If the channel is broken down, the trend is likely to continue. If it is up, then the trend that was formed by the ascending trend channels (gray and blue) will continue. In this case, our stop will be hit where it is now. If it breaks up, it will not have many chances. The fact is that he has already left the safe zone of the blue channel. And, if the price shoots up, then it will have no barriers to reaching our stop. We do not expect the price to return to the support of the blue channel. Because the breakdown is already large enough, and the channel has a strong slope. In this regard, we can assume that the price will not be able to catch up with the channel. But, it would be useful for us if the order was in the channel. Unfortunately, this is not so.
According to the rules, we will move the order to the unprofitable fractal only after it touches the level. We don't have that touch. But there is a new channel on the border of which you can move the stop. In this case, there is a danger of a false breakout and closing our position with a loss, albeit a small one. It should be noted that the channel resistance is quite strong. It worked several times cleanly and was never pierced. On M30 and H1 there are diverges formed after a false break down. From this we can conclude that the level is strong enough for a breakdown. But, if it is broken, then the diver will reinforce it, and the breakdown itself will most likely be true. In theory, this scheme is more suitable for placing a hedge than for trailing a stop. Look at the drawing by Stanislav Grebenshchikov from the book "Forex and Us".

Yes, we will put the hedge, even though it is in the unprofitable zone. The purpose of a hedge is to maintain profit/reduce loss in an uncertain situation.

8) Place the hedge on the last counter H1, on the top of the horizontal channel. Stop, below it, at the false breakout level.

Thus, if a false breakdown occurs, it will not knock the position out of trading, but if it breaks the channel in the opposite direction after that, it will close the hedge and continue moving. I don't think it's necessary to explain what will happen if the upward breakout turns out to be true. We are waiting ... A difficult position ... 🙂

9) Here, look at the data from the Oanda service. We take into account the right scale, where pending orders are displayed. The left scale is the market orders made earlier. So in the right scale: a vertical black line divides the area into 2 screens. Buy orders on the left, sell orders on the right. The horizontal line is the current price level at the last update (1 time per hour). The price is indicated to the right of the field. Above and below the scale of orders (max. 100%). As a result, the significance of the level is affected by the size of orders and their accumulation. Here we see that a large accumulation of orders to sell a large volume concentrated at the level of 0.8500. Approximately at this level is our stop. So hopefully the warrants will protect him. But, for this, it is desirable that the stop would be behind them, and we have a little in front. Next is our horizontal channel. Resistance is at 0.8480, support is at 0.8453. Our hedge is at 0.8482. After this level, you can see the accumulation of buy orders and this will allow you to put a hedge in the BU if it works. This is such an interesting service. Helps with the selection of significant levels. Oanda shows the location of the orders of the largest broker in Europe. The downside is that updates only happen once an hour, so levels can change. In this regard, the indications of this service are valuable only after the update, within 10 minutes. And then, if the market is calm.

10) I have a question. What to do if a profitable fractal is formed on a smaller TF, and on a larger rollback has not yet been completed? Those. the price has already entered the zone of profitable values, but did not create the conditions for the BU. At the next entry, there is a fractal, but the price has not yet reached the level of the previous breakdown.
Let's figure it out. When the trades go in a profitable zone, we wait for the completion of the rollback on the older TF and start adding and moving stops. At the same time, we can add on the control TF, and move the stops on the older TF. This allows you not to miss the opportunity of a profitable addition and not be knocked out of the auction by an accidental release.
When issuing a BU, we strive to protect our deposit as quickly and safely as possible. In the current situation, it may turn out that the rollback on the older TF has not yet been completed, and we have already entered the BU, which will be doomed. In this case, the actions only affect reliability. We decided to set the BU before the end of the rollback on the older TF, we can be knocked out of profitable trading with the trend. We decided to wait for the rollback to complete, it may not be. In this case, the BU-fractal will be lost and the price will come to a stop. Therefore, let's do this: when setting the BU, we will use the first profitable fractal, even if the rollback on the older TF has not yet been completed. Those. we will act as if this is the first entry into a profitable zone. In this case, we will use the same criteria for selecting TF control as before.

11) The price approached the resistance level of the horizontal channel. Our opinion about his strength was justified. After touching the level, the price rebounded sharply without breaking through it by a point. As a result, the channel was broken down from the other side. The hedge has been removed. As you can see, the breakout turned out to be not false and made a strong downward price move. Trend trading continues.

12) Before the breakdown of the passing fractal on H1 (previous false breakout), the price formed a counter fractal and the condition of adding on M5 (marked with a frame). Unfortunately, I could not use this opportunity (I was busy) and the fractal was skipped. It's a pity. Market volatility today was very well suited for this TF. As a result, it had to be abandoned. The lines show the addition and evolution of stops-BU, as we would trade if the fractal had not been skipped. A tick marks a move that would bring the position to a stop. Divergences are clearly visible on all 3 indicators and perhaps we could hedge…

As a result, to manage the session, I had to switch to M15.

13) And here is how things were on M15, the timeframe where we managed the session. After the breakdown of the horizontal channel and several completed fractals on M5, it was decided to set the BU at the opening price inside the channel. The breakdown was large enough and if the price returned to the level of our entry, then this would be a reversal. The breakdown was strong and fractals did not appear for a long time. I repeat once again that the M5 tf would be ideal for this session. After the formation of the first accompanying fractal, the preparation of the addition began. When the fractal was fully formed, the addition (blue dotted line) was set. The stop was placed on the supposed fractal at the local maximum. There were no divers to stop the breakdown. As a result, after the entry order was triggered, the price rebounded sharply, not allowing the fractal to complete its formation and broke through it, hitting the stop. As a result, the deal closed where the session on M5 would have closed. Only on the M5 would there be another profitable addition.

Hello! Andrey is with you, and today we will talk about how trend trading works. After studying the proposed material, you will know how to determine the direction of the trend using various tools and methods of technical analysis. Since the article will a lot of practical material, I recommend that you do the following:

• bookmark the page;
• write down all the suggested tips that you can use in practice;
• necessarily watch the video tutorials and do all tasks that are in each block of the article.

In this short post, I have tried to collect maximum of simple and useful recommendations which can be immediately applied in real market conditions.

Test drive your knowledge

Below are four security questions, which relate to how to draw a trend line and use it to determine the direction of the market. Please read them attentively and try to give as many accurate answers as possible. The correct options are published at the end of the article.

1. Why do you need a trend line?

Write down your answer on a piece of paper.

2. Imagine that you have two trend lines in front of you: the first connects five lows, and the second two. Which one is more important?

BUT. First
B. Second

3. Determine in which of the listed cases the forex market has settled flat

BUT. Calm movement with reduced volatility of the selected asset
B. New price extremes do not form on the chart for a long period of time
With. The price stopped between two moving averages with periods of 10 and 50

4. What is the name of the market situation when several successive highs are formed on the chart in succession?

BUT. Uptrend
B. Compression ( flat)
With. Market reversal

If you have any difficulties with at least one question, then I recommend that you temporarily suspend trading on a real account and study the theory for a couple of months. Perhaps this is the main reason that you do not know how to determine the trend and earn from your knowledge.

What is a trend and how does it happen?

Let's start with the basics. Below you can see three market situations that are present at all time intervals of any financial asset.

About 70% of the time the price is in a sideways state. At this moment, a balance of supply and demand is formed between all market participants. Conduct transactions at such moments unsafe, since no one knows in which direction the next price jump will occur.

Watch the following two videos, which detail the types of trend that are present. on all stock exchanges of the world.

Lesson #1

Lesson #2

Exercise

Open a chart of any trading asset and learn visualize uptrend, downtrend and sideways trend.

Why it is important to track the trend and trade in time with the market

In technical analysis, there are three main rules that are introduced to all beginners in any exchange school.

Pay attention to the second postulate. Two additional regularities follow from it, which should take into account everyone trader:

• The price is more likely to continue moving than to change the chosen direction;
• The development of the trend will not stop exactly until the moment when the chart shows reversal signs.

If to speak in simple terms then big money can be earned only during a period of directional trend movement. It is also possible to make a profit on trend reversals and during the side market, however, this requires experience and sound strategy. Unfortunately, for beginners, such schemes are almost impossible to implement.

This video shows how you can use different types of strategies on the stock exchange.

Exercise

Choose the concept of your future trading strategy. Think about how you will trade: with the trend, during the flat period or against the main trend.

What timeframe to work on

See the direction of the market on the time interval on which your trading strategy is being implemented.

For a more detailed explanation of this circuit, see the video.

Exercise

Determine the time interval on which you will track the trend.

Best Ways to Identify the Current Trend

There are over a hundred techniques to understand the direction of a market trend. Below we list only the five simplest and most effective. Whichever option you choose, always remember the main rule of diagnostics: if you do not understand in which direction the market is moving, then it is in a flat state.

Building trend lines

upward movement:

• increase;
• Connect the desired areas with the tool " trend line».

Downward movement:

• Find two adjacent points that are consecutive decrease;
• Connect the desired areas with the tool "trend line».

Alternatively, download trendline indicators and just wait for them to do the marking for you.

In this video you will learn how to add a trend line to a price chart and use it to get necessary market information.

Using technical indicators

• Open Metatrader 4 or another terminal you will work with;
• Go to the section " Indicators» - tab « trending»;
• From the available list, select any instrument that will send you signals about the current market situation.

In this video, you will learn how to determine the trend using popular technical indicators.

Support and resistance levels

Upward movement:

• resistance levels;
• If the price consistently overcomes level after level, then the market is in a steady trend.

Downward movement:

• Locate the next few on the chart support levels;
• If the price consistently overcomes level after level, then the market is in a stable trend.

When there is a trend in the market, the price movement resembles jumping up stairs:

Definition of four control points

1. highs.
2. See the direction of the last two lows.

Growing market:

• up;
• Each subsequent extreme higher the previous one.

Falling market:

• Highs and lows directed down;
• Each subsequent extreme below the previous one.

Flat:

There is no clear direction in the market or all control points are in the same level range.

For a more detailed description of this method, see the following video.

Viewing a higher timeframe

• Go to the time interval that 3-6 times your working timeframe;
• If the trend ascendingups and downs;
• If the trend descending, then a smooth step-by-step lowering the bottoms and tops.

For more information about this method, see the following video.

Exercise

Choose any one method by which you will determine the trend.

How to determine the strength of a trend?

With this indicator, a trader can understand how long the current market environment will continue. The weaker the trend, the more likely it is to reverse soon (and vice versa).

Let's look at a simple way to effortlessly determine the strength of the trend.

• Open the trading terminal;
• Go to the section " Indicators»;
• Add ADX.

Watch the following video, which goes into detail on how to determine the strength of a trend in forex.

Exercise

Find in trading terminal ADX indicator and learn how to use it to determine market strength.

How to use the trend?

Earlier we mentioned that there are three basic approaches that allow you to use the current trend. Review them again, and based on one of the methods listed, make sketch of my trading system .

Pullback trading	Finding Pivot Points	Opening deals in a narrow price range
You determine the direction in which the market moves	You set the trend	You are watching the trend
Wait for the moment when the price enters the correction phase	Waiting for signals indicating a market reversal	Waiting for the price to move into the consolidation phase
When movement in the direction of the main trend resumes, you enter the trade	Enter a trade against an established trend	Proceed to opening trades within the trading channel

How to trade market pullbacks

How to spot a trend reversal

How to trade during a sideways market

Exercise

Make a rough sketch of your future trading strategy.

What should a newbie do?

Start trading market pullbacks and follow the trend. Once you learn how to make money this way, you can expand and apply more complex algorithms. Until then, forget about the exotic and all adventurous experiments..

Preparatory part

• Choose any asset you like;
• Set a four-hour timeframe;
• Add two indicators to the chart: Bollinger bands and ADX.

Schedule after completing all the preparatory steps:

Purchase

• The price is located in the gap between the upper and middle bands of the Bollinger bands;
• The main ADX line is growing;
• Bullish engulfing»;
• One position do not invest more than 3% of the account.

Here is a four-hour timeframe for the GBP/USD pair. After entering the trade, we put stop loss at the level 90 points, a take profit made up 270 points

Sale

• The price is located in the gap between the lower and middle bands of the Bollinger bands;
• The main ADX line is growing;
• The price made a correction to the middle Bollinger band and formed a candlestick pattern " Bearish engulfing»;
• We buy on a new four-hour candle;
• Stop Loss is set in the range of 60-100 points, Take Profit is 3-5 times more than Stop Loss;
• We do not invest more than 3% of the account in one position.

Here is a four-hour timeframe of the pair GBP/USD. After entering the trade, we put stop loss at the level 80 points, a take profit made up 240 points identify weaknesses and get rid of them.

Personal Observations

When you trade for a long time, you begin to understand why the majority of traders lose money. Below you can see the main patterns that many users simply do not want to notice.

1. The market doesn't really care how you plot the trendline;
2. No matter how strong the trend is, nothing prevents it from turning around and starting to move in the opposite direction, and then return to the starting point in a few seconds;
3. Any prediction made is just assumption, which has no implementation guarantees;
4. The market is constantly looking for money, so the movement is always directed against the majority;
5. If your Take Profit is several times greater than Stop Loss, then even with a low percentage of profitable trades, you will be able to receive a stable income; ;
   ;
   .

   Checklist

   Below is a complete list of tasks that you would like to complete. for a complete mastery of the topic.

   • Open a chart of any trading asset and learn to visually identify an uptrend, downtrend and sideways trend;
   • Choose the concept of your future trading strategy. Consider how you will trade: trend, during a flat period or against the main trend;
   • Determine time interval, on which you will track the trend;
   • Select one the way in which you will determine the trend;
   • Find the indicator in the trading terminal ADX and learn how to use it to determine market power;
   • Make a rough sketch of your future trading strategy;
   • Test your trading methodology on 40-70 trades, identify weaknesses and get rid of them;
   • Check your strategy again and get ready to work with a real deposit.

   P.S. Test Answers

   1. With the help of a trendline, a trader can project the trajectory along which the price will move in the future. Additionally, it acts as a reference level, which is equated to support/resistance.
   2. BUT. The line connecting the five lows much stronger than the one that survived only two contact with the price. The more touches, the higher the value of the level involved.
   3. B. If no price highs or lows are formed over a long period, this means that the chart is enclosed in a fixed price range with extreme upper and lower points. This consolidation is called flat and indicates a balance between market sellers and buyers.
   4. BUT. Two successive highs is a classic definition that is characteristic of ascending trend movement.

   If you find a mistake in the text, please highlight a piece of text and click Ctrl+Enter. Thanks for helping my blog get better!

The goal of each trader is to increase capital, gain stable income. The key to successful trading binary options- Properly chosen strategy and trading tools. Beginners and professionals very often prefer the analysis of market entry points along the trend line. How is a trend formed and working? What signals does the trend provide to the investor, what does it affect? This is a broad topic, which we will explore in this article.

Concept and types of trend

A trend line is a vector that displays the movement of a quote over a certain time period. Such a concept is figurative, since the exchange rate of a financial asset does not constantly move in the direction of growth or decline. Due to the constant influence of external factors, the quote at a certain stage moves up, then down. News, events in the global economy, and the game of large investors have a direct impact on the depth and frequency of fluctuations in the price line. Therefore, a trend is schematically depicted as a line connecting extreme highs or lows.

Basic rules that are directly related to the trend:

• the course activity is unstable, the trend line will change;
• at any point on the chart, there is a high probability of the course moving in a given direction;
• the greatest income is received by investors who take into account the strength of the trend;
• playing against the rules is very risky, it is better to accept the situation as a fact.

In the currency exchange sphere, two main categories of trend are distinguished: by direction and duration. The first group is classified into three types: upward, downward, sideways. A growing or bullish trend is a stable increase in the price of an asset, each subsequent point of the chart is higher than all the previous ones. At this point, it is beneficial to open contracts for the purchase of assets.

The downward vector (bearish) is formed in the opposite direction to the upward one. Each next stage of the trend is significantly lower than the previous one. At this stage, traders prefer to sell options. The price movement along a specific horizontal corridor in trading is called a side trend or flat, consolidation. The quote fluctuates, but with a low frequency and within a narrow framework.

An important indicator in trend trading is the selected timeframe. The rate of change of the trend or its constancy directly depends on the interval at which the trader will trade. For example, on a five-minute interval, a bearish trend is observed, on a half-hour interval it actively turns into a bullish one, and after twenty minutes it turns into a flat.

If you trade options on a short-term basis, the probability of a change in the direction of the quote is very small. When an investor plans a long-term trade, a variety of price patterns are observed on the chart. Here it is worth noting that in terms of the strength of the trend on the weekly chart, there is a predominance in comparison with the hourly and even more so the minute.

Mechanism of Education

The graph is formed under the influence of a complex of factors, according to a certain scheme. Almost every trend during its existence goes through four phases: origin, development, saturation, completion.

The stage of formation is the moment when active investors enter the market. They open many transactions for the acquisition of financial assets. Horizontal fluctuations with numerous breakdowns are formed on the chart. Trading during this time is dangerous due to countless false signals. After buyers are saturated and the trading situation stabilizes, an active trend begins to form. It goes into the stage of development or accumulation.

The phase of distribution, saturation is characterized by the active dynamics of the quote. It will move in an uptrend or downtrend. main feature is that the rate is constantly changing, gradually increasing or falling. The chart is formed by a combination of impulsive or short corrective waves. Some active players freeze positions, while others start trading aggressively.

The final stage is the phase of completion, the end of the trend. This period is characterized by the peak position of the price. Most traders set stop losses to breakeven and proceed to withdraw money. The graph is presented in the form of a variety of figures, the frequency of formation of which is associated with the activity of users.

Beginners mistakenly think that after the end of the trend, a new one, diametrically opposite in direction, must certainly open. This is not entirely true. After overcoming the peak moment, the quote goes into a wide trading range. It is very difficult to predict her behavior.

Trend detection

How to identify and correctly depict a trend in binary options? Trend lines are actively used in technical analysis. To teach you to accurately and correctly determine the direction of price movement, it is worth getting a minimum knowledge of the market situation. Each trader builds a chart according to his own principle, but relying on the advice of professionals.

Most often, two or three peak maximum or minimum points are used to construct a vector. It is important to understand that the trend line will not be alone in the figure; smaller trends with different directions are adjacent to it. The drawn main line often crosses the support and resistance levels, which indicates the end of the trend.

An uptrend represents a support level, which is indicated by the low line of an uptrend. The limit of resistance will be the wave connecting the tops of the bearish trend. Consistent connection of lows and highs will form a horizontal price corridor.

Trend option trading is based on four fundamental principles:

1. The accuracy of trading signals directly depends on the value of the time scale. The larger the selected segment on the chart, the more reliable information the trader will receive from the analysis. A line built with a forecast for the day will be more accurate than the dynamics for a few minutes or an hour.
2. The duration of the analyzed feature is also very important. The further the trend goes, the more informative the chart. If you take a segment of fifteen minutes, the investor will not be able to clearly predict the situation for the next hours. Such a picture will be one-sided, with false signals.
3. When building a trend line, it is recommended to use a large number of touches. The more often the price is in contact with the trend, the more stable it is. When the quote bounced off the chart three or more times, the investor confidently opens a deal in the given direction.
4. The strength of the trend is visually determined by the angle of inclination. The faster the trend rushes in comparison with the base horizontal, the stronger it is. A large angle of inclination is always an indicator for opening a knowingly successful transaction. A gentle trend will show weak impulses, it is advisable to wait for brighter dynamics and only after that enter the market.

Trading Rules

Binary options trend trading - similarity financial pyramid. Traders who are the first to open positions in the market receive good profits due to the activity of subsequent users. The trend line shows the direction of the rate movement, serves as a basis for predicting the success of the contract, the percentage of profitability.

To draw a trend line, it is advisable to choose the most exact points supports. Peaks and troughs are the basis of the non-indicator method of building a trend trend. The indicators installed on the broker's trading platform also come to the aid of the trader. The most commonly used moving averages, MACD.

The timeframe needs to be clearly defined. Do not analyze weekly charts if you plan to intraday trading. The user will waste time and effort because the analyzer works differently for short and long periods.

Second important point- selection of a financial asset and a trading session. On popular currency pairs, the trend of the exchange rate change is the most pronounced, and on rarely used trading instruments, it is somewhat more difficult to predict the movement. It is better to trade clear options than to risk losing everything because of one wrong move.

Let us describe in stages the algorithm of the investor's actions for trading binary options based on the trend:

1. selection of a trading session, financial asset;
2. determining the direction of the trend (upward, downward, flat);
3. calculation of the duration of corrective waves by analogy with the previous trend;
4. the transaction is opened after a clear formation of a trend line following the passage of a correction for an expiration period equal to the duration of the correction;
5. the duration of the contract depends on the expectations of the trader and the activity of the quote, it is always advisable to advance the stop loss when approaching the take profit.

Professionals advise to beware of opening trades if there are no rollbacks on the chart for a long time. With a 90% probability this phenomenon will occur in the near future. You cannot trade without being convinced of the strength of the trend. It is better to double-check ten times, calculate the moves than to lose everything at once. It is advisable to avoid trading if abnormal, unpredictable price movements are recorded on the chart.

Binary Options Trend Trading Strategies

Strategic decisions on conducting trading operations with binary options are made according to the individual tactics of the investor. Important selection criteria will be the size of the starting capital, free time for trading, and the expected profit. Beginners prefer to play on a strong trend, while professionals actively use reversals and rollbacks to multiply their finances due to increased risks.

Among traders, a trend trading strategy for binary options is popular, based on opening deals in anticipation of rollbacks. It is obvious that the quote does not always clearly and unconditionally follow the given direction, there are slight fluctuations in the opposite direction.

First, the user forms support and resistance levels on the chart. The signal for options trading will be the third touch of the support line on an uptrend. A similar principle is used on a downtrend. Since the probability of the price returning to its previous position after a rollback is quite high, the client receives a decent profit.

The simplest binary options trading tactic is to follow the direction of the trend. If the trend is up, contracts are opened to increase, downward to fall. Everything here is logical and simple. It is important to avoid opening deals when the price is walking along a narrow corridor. The only way to benefit from the price channel is to fix the touch points of the support and resistance levels.

Very often, professionals use strategies based on the Moving Average indicator. If two or three moving averages on the chart intersect and move up in the same direction, it is recommended to open a deal at this rate. A trader will take a similar action when the price line breaks the chart from the bottom up, touches it again and moves up. It is not uncommon for investors to trade on a rebound, when the price periodically touches or bounces off the moving average.

According to statistics, trading on takeovers brings a fairly high profit to traders. It is important to continuously monitor the live chart, to exclude all minor quote fluctuations. You should not trade on news releases, as the percentage of risk increases many times over. Only professionals with a very clear and reliable strategy can cope with such psychological pressure.

The main mistakes of novice traders are impulsiveness. Immediately after detecting a pair of candles in the expected direction of the course, the user draws a trend line and enters the market. Due to the rush, the contract will close with a loss in most cases. Therefore, it is important to wait for at least two more figures to appear, confirm the trend with other indicators, and only after that start trading.

Trading binary options with a trend line is one of the simple, straightforward methods. It is ideal for beginners and professionals. It is important to be subjective to the picture displayed on the charts, to study the behavior of the asset in a deep and detailed way in the market environment. It is advisable to exclude emotionality, excitement, impulsiveness, then trading will take confident steps forward. An additional percentage of success will add strict adherence to the rules of the chosen strategy.

During the experiments, we came across the fact that the "Trading with the trend" strategy does not work for all trading floors. In particular, we failed to implement it on the Olymptrade and Dukascopy platforms. Why this happened we do not know, we associate with technical features plotting. At the same time, "Trading with the trend" works great for brokers.

The fact that the trend is our friend, probably, did not hear anything, but the trader who does not read anywhere. Employees also recommend working in the direction of the trend brokerage companies, and home-grown "gurus", and experienced speculators on forums and blogs.

Note that there is not even a question of which financial market trade, the recommendation is relevant for any trading platform.

For this review, I chose from a variety of techniques the best strategy trend trading for binary options. top scores demonstrated the system, which I will discuss in more detail later.

Determine the trend for the binary options strategy

Before you start trading with the trend, you still need to determine it on the price chart. To do this, you can use various tools, but technical indicators remain the simplest and most common.

To determine the direction and / or strength of the trend, there is a whole group of algorithms in which you can find the most convenient option for you. Personally, I like the standard Moving Average (MA) most of all, which uses a simple, understandable and logical formula in its work.

MA is in the platform of any company that offers its clients technical indicators. There are several different versions of this indicator, which differ in the principles of calculating the average price values ​​for the set period (SMA, EMA, etc.).

Reliable brokers that have MA in their platforms:

• (here you can start trading from 350 rubles - there is a demo!);
• (there are accounts from $10 - there is a demo!);
• (deposits from $100).

In general, both SMA and EMA with a period of 25 are suitable for our task. Of course, there is a difference in the principle of constructing the indicator line, but in this case it does not play the main role.

This binary options trend strategy will only use the SMA/EMA to identify trends and corrections in the market.

Select the SMA tool as shown in the following illustration. In its settings, set the period to 25.

Now we have an open price chart of the asset with the M1 timeframe and SMA25. Pay attention to the moving average:

• If it rises, we have an upward trend;
• If it goes down - a downtrend;
• When it moves sideways with a slight slope or without it at all, the market is flat.

We will be interested in the first two situations, and the third does not suit us. We will work only if there is an upward or downward trend in the market.

Binary Options Trend Strategy Rules

To work according to this method, you need to choose volatile assets, for example, such currency pairs as EUR/USD or GBP/USD are well suited. The preferred time for trading is the European and American sessions.

This strategy for the trend in the binary options market is designed for contracts of 5 minutes. Let me remind you that before concluding a deal, we set a period until expiration. This is the interval from the moment of buying a binary option to the moment of its execution (completion).

Having set the expiration (5 minutes), we begin to evaluate the current market situation in order to find the right moments to make deals.

Consider an example with an uptrend. Suppose we see an increase in the market price of an asset on the screen, due to which the SMA line has an upward slope.

Please note that even if there is an uptrend on the chart, we still see price corrections. It is not difficult to determine them, significant corrections break through SMA25 from top to bottom.

It is these moments when the asset price drops below SMA25 that we will consider as the optimal periods for making deals.

Wait for a few candles to close below the SMA25. The signal to buy an option "Higher" for 5 minutes will be the closing of a one-minute candlestick that has broken/closed upwards on the indicator line.

As soon as the candle closes, we immediately purchase the binary option "Higher" for 5 minutes. It is desirable that the volume of the transaction does not exceed 5% of the size of your deposit.

To conclude a deal in the direction of a downtrend according to this strategy for binary options, mirror conditions are needed:

• Downtrend;
• Price correction upwards (breaking through SMA25 from below);
• Closing of several candles above the SMA;
• Touching/breaking down the moving average by the market price;
• Binary option "Below" is bought at the close of the candle.

It turns out that trading with this strategy is carried out in the direction of the trend from the current corrections. Only the most significant corrections are selected that break through the moving average and take the asset price to the other side of the SMA.

By registering an account on this page, you get +100% to the deposit.

Features of the trend strategy

It is known that no trading system gives 100% correct signals. This trend trading strategy for binary options is no exception, because one of the price corrections may well develop into a new, full-fledged trend.

However, market corrections within a single trend can occur multiple times, and a full-fledged trend reversal can occur only once.

Using this technique, we enter into a trade when the price has not only deviated from the current trend, but also shows a return to the original trend. This allows you to protect yourself from full-fledged market reversals, which is very important.

The trend trading strategy can be simultaneously applied on the price charts of a number of assets. We can monitor market situations, for example, on a dozen currency pairs, waiting for the development of events that suits us.

Results

Of all the trend strategies in the binary options market that I have tested, perhaps this particular system has demonstrated the best performance with moderate risks.

You don’t need any special tools to work on this method, only a moving average line is useful to make it more convenient to identify trends in the market and find corrections suitable for making deals.

Good day!

Today we will talk about such a thing as a trend and about some ways of trading on it. Many traders are waiting for the trend, because it gives excellent opportunity earn. You should always try to join a strong movement - this is the key to successful trading. But not everything is so simple, not many people can recognize a trend movement or competently enter a trend position. Everything comes with experience, the main thing is not to stand still and constantly develop in this direction. And I hope from my article you will emphasize something useful for yourself. I will also give you some tips to follow. Let's start with the definition of the concept itself. So let's go.

What is trend movement?

A trend is a certain direction of the market. In general, the market has two states: a trend and a flat, and most of the time it spends in a flat (sideways). The market is in a trend about 30% of the time, and sometimes less. The trend is divided into directions.

An uptrend is a consistently rising price low and high. A downtrend is a consistently decreasing price low and high.

Here is an example of a strong trend on the hourly timeframe for the Aeroflot stock, which lasted more than a month.

Features of trend trading

On the chart, it is quite easy to recognize the trend, with the appropriate experience. Especially when most of the movement has already been completed 🙂 The difficulty lies precisely when entering a position at the beginning of a trend movement and when correctly entering corrections with a short stop. If we jump into the market intuitively after a strong impulse, then we will have to put big stops and we are unlikely to make money. The stop must be placed correctly, otherwise we will constantly catch it. There are certain nuances for entering the market with a trend. By the way, trend movements are different and sometimes the approach changes. There is a trend that is almost non-reversal and the position can be pulled by tightening the stop. Sometimes the trend is very sluggish with big pullbacks. Therefore, one more important point, you need to trade only understandable situations, if something is not clear to us or there is no entry formation, then it is better to sit on the sidelines and skip a few movements than to try to mindlessly open positions. Even if it “seems” to us that the market must definitely grow. There is no need to impose your opinion on the market, the market may often not meet our expectations. And if we do not comply with the risks and rules of the trading system, then we can be well cut. First of all, always observe daily risks as well. It is better to stop in time after a few stops than to lose half of the deposit, as perhaps at the moment the situation is really unfavorable for us.

In general, there are many options for trend trading, but first of all, you should stick to the following. You must have the most clear rules for determining the direction of the market and the entry point. Very often, a strong trend is born after leaving the price range in which it has been standing for a long time, or after leaving an important price level.

About how this happens, I wrote in an article on.

And this can be a good entry point into the position. During a trend, you can also look for entry points into a position. This is either after the correction, or after the breakdown of the next level that you have determined for yourself. The main thing is that you should always understand what you are doing and have clear rules. Then there will definitely be a result.

The main mistakes of beginners

And now, as for the most common mistakes that are encountered and that I have encountered. Most traders, especially beginners, try to get into the market without waiting for a signal and not understanding what is happening at the moment. There is a trend, or it is not. Again, you must clearly understand the situation and have rules to determine the presence of a trend.

The next point is psychology. Many people are afraid of missing out on a strong trend and start trying to anticipate the move and start opening a bunch of unsystematic trades. Naturally, the result is deplorable.

And the most terrible problem for most is trying to identify the state and catch a reversal in the market. Especially after a strong movement was missed. After that, attempts begin to make money at least on a market reversal and find its bottom. “The market has to reverse sometime, right?” many people think. And the market doesn't owe anything to anyone, and it doesn't intend to turn around 🙂 It's especially sad when all this is done without stops and averaging against the movement begins. The result is always the same - draining the depot. Of course, there are scalping techniques that are traded by the countertrend. But there are a lot of nuances there. All trades are very short in time and executed with a small stop loss. I will end with this. Don't make mistakes and trade with the trend. All success.

Sincerely, Stanislav Stanishevsky.

PS. You can also see some examples of entering a trend position in the video.

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