The global financial market is greatly dependent of economic data. It is a mover for international and local market. This, however, is a huge supply for market instabilities. This is why many traders are careful enough to make their trade when data has been released. For anyone who is interested on macro-trading Strategy “M” or Milos Strategy can be a good basis. Let’s take a closer look at Strategy M.
There are varied scenarios and markets and each of these scenes different strategies should be applied. If you know about these strategies you can make use of the necessary tactic for the exact market thereby reaping better and more benefit than the typical trader. You can also grab the chance to know and understand stimulating ways for market analysis and trends. I have been on my computer’s trading screen staring and then I realized a great strategy that is very much effective. Such strategy is just for fifteen minutes. I was curious about testing the strategy so that I can note the price movement behavior with fifteen minute expiries can be noted. I also wanted to focus on data and news releases on macro economy. I have tried it in the markets as well as in each market conditions from the unstable European, US, and Asian market to the more silent Australian session.
HOW WILL YOU USE THE STRATEGY?
For shorter time frame focus, you can make use of Strategy “M”. I made use of trend lines to identify trades. I started looking daily price charts and then I move down to hourly prices. I used 5,10, and 15 minute candlesticks as the signals used. Among the most efficient and ideal binary option traders tool are trend lines. When you identify these lines, as a binary option trader, you can see the sentiments of the primary market. The way I draw my line is from the lowest all the way to the top peak. When I already get the trend lines, support lines, and resistance lines I can now use the follow indicators for Binary Options. These are Stochastic Oscillator, RSI or Relative Strength Index, and MACD.
HOW DO YOU GET A SIGNAL?
Before micro and macro economic data are published signals need to be taken. Because you can use the strategy on currency pairs it is ideal to select what pair and what announcement you should carefully trade. Prior to the announcement you need to have your charts prepared and make primary analyses based on hourly and daily charts. Identify whether the market has been oversold or overbought? Is it closer to resistance or support? Is it close to trend line? Where is it moving? Up? Down? Or Sideways? When you have asked these questions you can then go down to your fifteen minute chart in order to have a more transparent market view based on principal long term trends. Before releasing data, put a trade to the underlying trend direction making use of the fifteen minute chart for the signal. Such signals may comprise of confirmation, breakthrough and/or break out of trend, support, and resistance. The indicators must confirm the signals. When the signal happens go to a position in the way of that break fifteen minute expiry. Once data has been released, you may expect a market sentiment so that you can follow through in having in-the-money-trade.
WHY IS THIS STRATEGY COOL?
This strategy is cooler because it give the probably of utmost profits through fifteen minute expiries. It makes use of a multi time frame analysis tool which guides traders to see movements in short term from a correct long term view. Moreover, it uses multi indicators such as MACD and trend lines. These the most trustworthy option trading indicators. The fact that such strategy makes use of basic trends you can use it in both direction thereby giving way for bearish and bullish trades. You will know when announcements will come as trades are positioned just seconds or minutes before they are release which is very easy.
WHY IS THIS STRATEGY NOT SO COOL?
This strategy is not so cool because it only allows a shorter time frame. If time frame is just short then there is a great possibility that trends for long term will unfavorably affect your trades particularly if you hate long term trends. Also because it is dependent on data, this strategy might also such which means that it cannot be used every day. You should not use this strategy on weekends. There are also economic releases from countries like the EU, China, and Japan on Sunday or Saturday afternoons.
This strategy is a really useful and potential strategy. It offers traders trading foundation based on varied signals offered on unstable data releases. The bad side about this is its being a complex strategy and not advisable for intermediate or even new traders. You need a higher analysis and calmness level for this strategy. Moreover, it I ideal to note that when you trade when economic data has been released is something that a lot of traders do not do. Markets are unstable. A lot of traders wait after data has been release to know where the prices are going prior to making trade transactions.