What are pullbacks in binary options
Facebook MACD Pullback strategy — Binary Options Trading If you know a little bit about binary options, you would know that the forex market move like waves which it goes up and down consistently. Market trend is always full of retracements, rebounds and traders are able to use these as weapons to look for entry points.
The strategy we going to use to spot trading chances at retracement require 2 indicators, the MACD and Moving Average, both of them are well-known indicators in trend following and reading trend strength.
Keep scrolling down to find out more on how to use this strategy to trade pullbacks in binary options.
The primary tool we going to use is the MACD, the popular trend tool. And we will leave the setting for MACD as default.
5 Pullback trading strategies and how to trade pullbacks
Next we will need to monitor and stay close with the price action in real time and therefore we will use the Moving Average to help us to follow price action closely in real time. And we will set the parameter of the moving average to Again, option period is entirely up to you but for now I will trade with 10 minute option period, and I will also set the chart time-frame to 5 minutes.
When to trade Make sure the market is in an uptrend environment; If candles are approaching or cut through moving average, If candle cut through moving average, wait for it to be back to above the moving average; Lastly make sure MACD lines crossover and heads upward while histogram is green.
Place HIGH if all above criteria are met. Timing to place LOW Make sure the market is in an downtrend environment; If candles are approaching or cut through moving average, If candle cut through what are pullbacks in binary options average, wait for it to be back to below the moving average; Lastly make sure MACD lines crossover and heads downward while histogram is purple.
Place LOW if all above criteria are met. Author lionbo Posted on.