5 MINUTE TRADING STRATEGY

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In the recent weeks, I have been working with my friends on a new 5 minute binary strategy. The strategy works in both trending and ranging markets; in my experience, it is best to trade retracements. The truth is you can find similar 5 minute strategies for binary options, and I am not pretending to be the inventor of the bands, but eventually we all profit from the original creator, John Bollinger.

I have seen the strategy in very complex versions with dozens of different indicators and 7 or 8 rules that need to match in order to place a trade. After all, it is all about price action, and if you follow the indicators blindly, you will be lost.

For beginners, I would recommend first learning to identify trending and ranging markets, reversals and retracements. The MBFX bands are extremely helpful in visualizing the price patterns, and adding EMA indicators will show you the direction of a trend. When you are a more experienced trader, you can use the strategy with 60 second binary trades, but to lower the risk, you should stick to 5 minute expiries.

I am using 1 minute candles on the chart and placing five minute binary options. If you are using 5 minute candles, you can try 15 minute trades. It is up to you to make the strategy suit your style. As I mentioned, I prefer using the strategy in trending markets and placing trades on retracements. To identify the trend, I am using an EAM indicator. Some of you may prefer using two periods and waiting for crossings. You can also put Fibonacci levels into action to spot retracements. In trending markets, you are buying with the trend: In fact, usually prices are ranging, and if you want to use the strategy during all trading sessions, you need to learn how to trade in a ranging environment.

For beginners, it might seem more confusing with the price constantly moving up and down, but like in every other process, it takes practice. In ranging markets, the price bounces between the support and resistance levels. Your aim is to place trades when the price is in the overbought and oversold zones. I have used many different indicators, including alarms and arrows popping all over the chart, and the truth is that if you focus on the indicators only, you will be lost.

You should focus on the price action and learn to identify retracements, then you have a better chance to be on the winning side.

It is not necessary to follow my signals precisely. You can remove indicators, or add new ones; simply make your own strategy, and make it work for you. Of course, the outcome for everyone will be different, and it all depends on your skills, knowledge and experience. Knowing the nature of binary traders, I would suggest you start paying attention to the news because, for every trend, there is a reason behind it.

Please feel free to share your results with this strategy in the comments below. Should you have any suggestions how to improve the strategy, we are happy to discuss them. You can download free indicators and template. Skip to main content. You can try the strategy first on a demo account, and post your results in the comments below. Trending markets As I mentioned, I prefer using the strategy in trending markets and placing trades on retracements. Ranging markets In fact, usually prices are ranging, and if you want to use the strategy during all trading sessions, you need to learn how to trade in a ranging environment.

Tue, 28 Nov Log in or register to post comments. Ok i got it. Does the MBFX setting the same as the 1 minute strategy: Fri, 15 Sep Mon, 24 Jul And where you can download indicators please? Thu, 23 Mar

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The chance of an asset moving in your direction, or even moving enough in your direction, within the next 60 seconds is so slim as to be near impossible to judge. This is not to say that it can not be done because it can. This is evidenced by the large number of algorithmic traders and options scalpers that exist today. If it were impossible to make money on such a short time frame these traders would not exist. I personally prefer to use at least a five minute chart but this strategy can be used on any time frame from 60 seconds to one week with relative success.

What am I talking about…. Bollinger Bands are all about volatility. Volatility is the movement of the market. Trading is about catching market movements in order to profit. It only makes sense that an indicator that measures volatility would be a good tool for traders.

There are lots of such tools, and many ways in which to utilize them but Bollinger Bands are by far the best methods for day traders.

Short term binaries are all about catching short term movements. The thing is, when you enter a binary options contract you are not necessarily getting in at precisely the spot price at time of purchase. This is because all the brokers include a small amount of slippage into each strike in order to help them maintain acceptable losses.

This is not a scam, just the cost of trading and something explained in every brokers terms and conditions I have ever read. This is why trading 60 second options and other super short expiries is so hard. Not only do you have to be right, you have to be right at exactly the proper time AND the trade has to move up enough to match and exceed the strike price at which the broker has set the option.

Bollinger Bands are excellent for trading short term binary options because they pinpoint times of low market volatility movement and then signals when the market start to moves. Once the market is moving the bands also provide numerous follow up signals that savvy day traders can take advantage of. This is how it works. The bands are based on a standard deviation of prices and will get narrower and wider as volatility decreases and increases.

When the market is very calm and quiet the bands get narrow, when the market is volatile and moving a lot the bands get wide. The patterns of widening and narrowing are one kind of signal while price action in relation to the bands themselves provide another.

There are three lines in the equation. The first is a moving average usually set to 20 periods. Look at the chart above. Notice how the bands become narrow and then widen over time. When the bands narrow it is because prices tend to trend sideways. When the market trends sideways it is very hard to profit from binary options. When the market moves up or down from one of these sideways patterns the bands get wider, indicating that movement.

That is the very first signal you look for, a narrowing followed by a widening. When the bands begin to widen you know it almost time to make a trade. The next step is to wait and see which band price touches when the widening starts. This is usually an indication of direction and what kind of trading you will be doing. If prices touch the upper band the market will usually rally. When price action touches the lower band the market will typically sell off.

Bollinger Bands, Volatility and Binary Options. Bollinger Bands For Binary Options Bollinger Bands are excellent for trading short term binary options because they pinpoint times of low market volatility movement and then signals when the market start to moves. Bollinger Bands Are Best for short term binary options trading.