Strategy Options Trading – Catch the trend

Catch the trend

Popular strategy with the help of which you can trade binary options strategy is called, Catch trend. This strategy is used as an extra.When the trend will only commence strategy is that at this point (at the time) need to purchase a binary option.

Do not use this strategy often. The reason for this, the price movement. Crouches on the trend only thirty percent of the time this price movement. Other seventy percent, the price is in a trading range. This range is between two levels, the level of resistance and support level.

Almost all traders in most cases, make deals at the trading range. But this preference is not quite right. At the time at which the levels of support and resistance levels will break, do not ignore the trends. This is exactly what would be necessary, as the price will definitely go up or down or up. Strategy involves some special signals. They will show the point to enter the market when the formation of a new trend. The strategy also involves the use of specific techniques for managing capital, which reduce the potential losses to a minimum.

Tools are:

– Slow Stochastic,

– Moving average

– Two graphs (hour and minute).

For successful use of the strategy should be to use some action. First, you need to authenticate by comparing and ten-hour schedule.Trend will ascend or descend on the charts when the price will be, or is below the moving average, or above. Then you need to determine when you have to buy the option. In other words, the input to determine. To do this it is necessary that the price of a ten-minute chart did not exceed twenty, and also did not fall below twenty points. Fast line (stochastic line) or as a solid line is called – should cross the line slow (dotted). This should happen at the level of twenty to buy or above eighty for sale. In other words a call or a put.

Following these actions, you can define some points. You can define in which the currency is trending. In the short term ascending or descending. Also determined slowing currency movements, with the ability to go back and rollback. This allows the back to move with the trend.

Further, when the price goes beyond twenty points – catch the trend.

This strategy is risky. Have the ability to catch the trend of unity. This ability is even considered an art. So you should be careful. Also, do not forget money management. With proper management it will be possible even after several failures to remain on the market. You should not play the game for two to three percentage points higher than your deposit.

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