Price action forex binary option strategy
Try working on higher frames of time such as 1 hour or 4 hour or even daily if possible as these prove more reliable. As an experienced trader you know you way around drawing these lines and knowing which ones are significant as well as why some are stronger and some weaker. The stronger resistance and support lines are usually those at the higher time-frame.
Where price action is thickest and candle bounces, the lines are often stronger. If you work on two charts at the same time, one on H1 and one on M5 you can see when the price is moving towards one of the stronger resistance or support lines.
Watch the Stochastic and the clock to get a signal when the price is trending and seems to be moving towards a major resistance or support line. The timing of the signals is the most important part of this specific strategy. So you need to look for a possible retracement when the clock is about to hit the hour or half hour. This means you could possibly have trade entries 48 times in each day, but the price does not always follow the pattern.
To help things out further the Value Chart was at the level which also signaled a possible overbought situation. I placed a Put with a 10Min expiry and it was about a 4 pip win.
But I did find confluence and adequate PA to trade it. Here price was reacting to the and EMA, so I waited until it came down and touched one of them.
It did and shortly after there was some rejection of that level, and also a pin bar formed, which I highly value. The trend was also changing direction to the north side and the Value Chart had just dipped down below the 94 level, signaling to me a possible oversold situation.
Remember folks, follow your rules. It was ITM by about 4 pips as well. One thing I do not do is trade during December; everything just seems sporadic to me so I stay away. Plus it gives me time to focus on family and friends; otherwise my head is stuck in the books lol.
Anyways I made four trades today, and three of them were ITM. I have made a slight modification to my charting setup, nothing big really, just I changed and added an extra EMA to the chart. Once it reached it again I waited for some other form of confluence. We can see that the overall trend was down, and there was a bearish inside bar that formed after the candle that reached the EMA. To help things out further the Value Chart was at the level which also signaled a possible overbought situation.
I placed a Put with a 10Min expiry and it was about a 4 pip win.