There are many binary options website out there that offers strategies for your trading needs. However, because of the number of websites that lure you to trusting them, it can be hard to decide which one you should trust. If you are trading USD and EUR currencies we have this great strategy than can help you be successful with your trading ordeals. USD and EUR are the most commonly traded pairs in the foreign exchange market. This is why there are some strategies that you have to rely upon. Trading both currencies is a smart move because these are very liquid and is less risky to sudden unstable movements. Another reason most traders chose both currencies is that it almost trades 2/7 and typically has good prices as compared to other currency pairs.
HOW DOES IT WORK?
The EUR/USD simple strategy for binary options was specially created for using low/high and touch or no touch kinds of binary options. It makes use of PSAR and MACD for signals. Novice traders can surely appreciate BO.net. Trades, as well as Analysis, depend on thirty minute charts. This means that is quite a short strategy. Its momentum indicator here is the MACD and the PSAR is for trend determination. PSAR and MACR are set to standards which are 9,12,26 for MACD and 0.20 and 0.02 for PSAR.
This strategy makes use of 2 signals specifically bearish and bullish signals. For bullish signals, you need to wait for PSAR to be below the price action and the MACD has to be bullish. This shows that the trend is bullish and that it has a bullish momentum. The opposite is correct for the bearish signal to transpire. PSAR begins above the price action and the MACD crosses over from a bullish signal to a bearish signal. To enter a trade, you need to have either signal. We suggest a touch or no touch for its trade when there is a strike in price that is below the resistance level for bulls or for bears – an above support. Because this is what resistance and support can offer a barrier towards trade. If this is the case then it is recommendable to take the no touch position.
WHY THE EUR/USD STRATEGY IS NOT SO GOOD?
This strategy may not be so good because it advices your to use the touch or no touch options which is a kind of trading that typically comes with great returns, but also comes with great risks. The fact that it only comes with one touch for pay out makes the required levels quite far from what you will most likely expect on asset movement. Moreover, if you choose the no touch due to support and resistance and some factors, then you are taking risks that the movement will just go as far as the line. It also sucks because longer term trends are not that important here.
WHY THE EUR/USD STRATEGY IS GOOD?
This strategy is quite good because you can use 2 approved indicators with good entry points. These indicators also suggest what kind of binary option you may trade. A likable and commonly used indicator here is the MACD making it a very useful tool. As mentioned before, it is considered as a momentum and confirming indicator. If you have less experience on PSAR, you will come to like it if you use this strategy. It can be used in binary through forex or futures trading and offer great signals. When you use this together with MACD, you can surely improve your binary options. The strategy comes with well defined signals lacks some extra support for long term trends. With this being said, every buy signal needs the two indicators for confirmation thus doing away fake signals.
If you want to trade short term binary options, this can be a great strategy. But it can leave you with some stipulations. The thing that you can change would be the kind of option from the referred touch or no touch to a high or low style position.