Title
Price Action Strategy in Binary Options Market
Element(s)
  • Classic Pattern
  • Candlestick Pattern(Engulfing, Hammer, Piercing Line, Tweezers …)
  • RSI (8)
  • Stochastic (14, 3, 3)

Call/Ladder/No-Touch signal

On a downward trend, after trend touches TP Price of a sound and distinguished Bearish classic pattern, if on that spot any or all of the following confirmations appear then a Call signal is generated;

  1. If prime reversal Bullish candlestick (Bullish Engulfing, Hammer, Piercing Line or Tweezer Bottom) forms
  2. If RSI line crosses its level 30 toward top
  3. If Stochastic line crosses its level 20 toward top

If price reaches Entry Price, given signal will become active. In case that traders cannot place the Call order on given contract when price passes the Entry Price, then given Call signal becomes invalid.

On a special occasion, after price crosses the Entry Price if it bounces back toward bottom and proceeds lower than Entry price before ordering Call contract becomes unavailable then given Call signal remains valid and reliable.

Concerning Ladder contract, given signal forecasts probable higher levels(Target Prices) that may be touched by market price and price will stay higher than those levels at Expiration time. Each Target Price has its own expiration time or Payout percentage.

Regarding No-Touch contract, generated signal predicts that price may fluctuate below certain(Target Price) amount without touching it before expiration time.

  • Entry Price: High Price of last candlestick
  • Target Price: length of last candlestick over Entry Price

Put/Ladder/No-Touch signal

On an upward trend, after trend touches TP Price of a sound and distinguished Bullish classic pattern, if on that spot any or all of the following confirmations appear then a Put signal is generated;

  1. If prime reversal Bearish candlestick (Bearish Engulfing, Shooting Star, Dark Cloud or Tweezer Top) forms.
  2. If RSI line crosses its level 70 toward bottom.
  3. If Stochastic line crosses its level 80 toward bottom.

If price reaches Entry Price, given signal will become active. In case that traders cannot place the Put order on given contract when price passes the Entry Price, then given Put signal becomes invalid.

On a special occasion, after price crosses the Entry Price if it bounces back toward top and proceeds higher than Entry Price before ordering Put contract becomes unavailable then given Put signal remains valid and reliable.

Concerning Ladder contract, given signal forecasts probable lower levels(Target Prices) that may be touched by market price and price will stay lower than those levels at Expiration time. Each Target Price has its own expiration time or Payout percentage.

Regarding No-Touch contract, generated signal predicts that price may fluctuate over certain amount(Target Price) without touching it before expiration time.

  • Entry Price: Low Price of last candlestick
  • Target Price: Length of last candlestick below Entry Price

Price Action Strategy in Binary Options

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