Are you searching for a quick, easy-to-understand and highly profitable strategy for trading binary options? That is tricky. A number of trading techniques are available on the Internet and many people claim their efficiency. You can find which one will work for you. However, because you are not one of those who designed them, it will be difficult for you to understand and to even apply one tactic when you trade. One 5 minute binary options strategy that we found on the Web claimed to be easy and to have higher success rate. You will require three things for this: charting solution, patience, and of course, broker (make sure it’s trustworthy).
Derivative Oscillator Indicator
The term sounds confusing and intimidating, right? But don’t worry; you’ll get to understand it now. When trading within the five-minute timeframe, Derivative Oscillator Indicator, a technical analysis indicator, is what you will need as it creates and discovers trends thus it has the capacity to determine the supposed value of an asset. It relies heavily on the momentum of the asset to produce signal output.
Remember that when you make use of this indicator the time must be set at 5 minutes because, clearly, we will be using the 5 minute binary options strategy. If the trading period is longer than this, the efficacy of the signals created will not be as expected. Moreover, Derivative Oscillator Indicator is more suitable for high volume stocks, as well as for currency pairings that entail low unpredictability. High volume stocks may refer to Apple and Amazon. You may also think of Nike when trading using this specific binary options strategy. As for the low volatility, it can be EUR/USD or USD/CAD.
Applying Indicator into the Strategy
After discussing about the Derivative Oscillator Indicator, it’s time to apply it into the trading strategy.
If you will look at the chart meticulously, you will realize that the oscillator bars and the price action candles are in similar directions. Clearly, it means that the oscillator bars follow wherever the price action candles go. At one point, you may also notice that the oscillator bars are the ones predicting the movement and it is the value action candles that follow suit. From these two occurrences, you can easily say that, indeed, the oscillators are the indicators of trade signals.
For a trading signal to be created, though, you must wait until one event happens and one event confirms it. An example of one event that you will look forward to happening is the change in direction of the oscillator indicator. For instance, when a negative candle appears below the 0.00 value, the following candle should be positive and vice versa. Now, what will be the confirmatory action? It is when the candle that appears above or right beside the Derivative Oscillator Indicator takes the same path as the candle. If this is the case then, you must place a trade in that path and make your expiry time 5 minutes.
According to the brain behind this Derivative Oscillator Indicator, he has experienced an estimate of 73% success rate using his 5 minute binary options strategy. The principle behind it is that it is so easy to understand that any novice trader can try it in only after a few minutes (or an hour, to be more definite) of monitoring. Application may not be as difficult as the other 5 minute strategies.
As what others recommend, you can try this on demo accounts. Soon as you have fully grasped the technique, you may start trading using your real account. Again, don’t get excited. Start trading for as low as $5 then gradually increase your investment as you progress. This tactic will help you minimize your risk.