5 Minute Binary Options Strategy

Five Minute Binary Options Strategy is the most successful minute binary option’s strategy, which is based on a trading plan that has been tried and tested by many successful traders. You can follow this same strategy by taking the information provided here and modifying it to fit your own needs. First you should always do your research and find out as much as possible on the market about any given option before you ever make an investment. 

This way you will be able to determine the likely direction the option is going to take and accordingly place your trade. Also you should understand what is happening in the financial markets at the time you are making your investment so that you can make decisions about your own trading strategy. There are many different indicators out there to choose from but here are the ones that we find the most useful for our own strategies.

5 minute binary options strategy

Understanding of Indicator

This is the easiest of the 5 minute binary options strategy indicators to understand and implement. All you have to do with this indicator is to set the threshold price above which you will only invest if the asset becomes within a certain range. When the asset reaches the threshold price you will then receive a “call” signal. The best thing about this particular indicator is that it is very easy to understand and implement. All you have to do is: 

  • Set the threshold price; 
  • Define what range you are looking at the range over and above;
  • If the asset reaches the range you defined then you will receive a “put” signal.

Moving averages and their usage

There is a 5 minute binary options strategy using moving averages. Moving averages are normally used to determine the general direction of a particular asset over time. They work by showing the price action over a period of time that is equal to the average closing price of the currency pairs being examined. What makes using the moving averages strategy so useful is the ease with which you can: 

  • Set up;
  • Use it in your trading account. 

There are a number of different types of moving averages to use and all you have to do is to define which currency pairs are the ones you wish to analyze.

Define the range of indicator

The best part about this 5 minute binary options strategy indicator is that it is very easy to understand and very profitable when implemented. All you have to do is to define the range where the price movement is expected to be, then set the time frame through which the data is going to be collected. If you want to see the complete range of the price movement, then you can use the moving average indicator range bounds feature. Once the range is defined, you can go ahead and set the threshold price within the range to determine whether or not you will enter the trading account and if you are going to enter, what exit strategy you are going to follow.

Its advantages

One of the best advantages of the 5 minute binary option’s strategy is that you can use this indicator if you are in a swing trade and you need to accurately predict the direction of the prices. If the prices move in an upward direction, you must buy. Conversely, if the prices move downward, you should sell. This is the basic concept of the technical analysis indicator and this is something that you can easily apply to the foreign exchange market. You may need to make a few trades before you get the hang of using this indicator correctly, but as you keep practicing, you will start to understand how the prices react to the prevailing market conditions.

Open and the closing price

If you intend to use the 5 minute binary options strategy to trade shares, the best way to predict the direction of the share price movement is to determine the open and the closing price of the underlying asset. By knowing the open and the closing price of the asset, you will be able to make the necessary calculations to determine the exact amount of premium you will need to pay on any particular trade. Once you have this information, you will be in a better position to determine whether the asset’s price moves in your favor or against you.

Filling the form

The 5 minute binary options trading strategy has been made easy by the online brokers. All you need to do is: 

  • Log on to the broker’s website;
  • Fill up the form. 

Once this form has been filled up, you will be sent an online quote. You can compare the quotes offered by different brokers and select the one which suits your requirements the most. Once you are through with the quote, all that remains is for you to click the button of the registration and place the order.

Expiration date

Another important thing that you need to keep in mind is the expiration date. Make sure you know the expiration dates of the particular option that you are going to trade. This is because the longer the expiration date, the more profits you gain from the options. To have a proper knowledge of the expiration times, you can log on to the website of the broker and get the latest updates. The 5 minute binary option’s strategy is something that works only if you have the complete knowledge of the options, the market and the expiry dates.

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