Strategy “Triple Confirmation”, despite its simplicity, is a very profitable tool that allows you to earn even in the short-term trading. But it is known that this type of binary options is the most capricious, requiring high precision work. The simplicity of it is that it is based on only one indicator – Relative Strength Index.
So, let us consider the basic principles of trade. First of all, it must be said that you can use any underlying asset for work; the time schedule for analysis is 5 minutes. Of course, it is allowed to use even less time, but the basis is just five-minute charts. Another important point to which you have to pay attention, is associated with the fact that we’re talking about short-term strategy. It involves buying a binary option to 1-3 candles. The optimum is to buy a lot to 1 candle, but sometimes you can find some modification of this strategy, in which a trader buys a combination of two binary options. First one – with the expiration of 5 minutes. The second one – with the expiration of 15 minutes.
The rules, which are used to determine market entry points are quite simple and can be expressed as follows:
- If all the indicators of triple confirmation are in the overbought range – you have to buy a binary option for a decrease (PUT).
- If all the indicators of triple confirmation are in the oversold range – you have to buy a binary option for an increase (CALL).
Under such levels marks 70-100 for the overbought and 0-30 for the oversold are understood. The example of the system can be described as follows. Initially RSI (5) is being analyzed. If it comprises the signal area, then look at the RSI (14) and look forward to when it is in the same zone. After that, you must wait until indicator RSI (21) entries the range and only after that it will be possible to buy item in the appropriate direction. Below there is a screenshot showing the strategy of the triple confirmation.
Here we examined the classical understanding of the strategy “Triple Confirmation” when the binary option is bought on a calculated level, which in this case is 5 minutes. And we see that all the signals worked out very well and brought a profit. Of course, this triple filtering makes the strategy effectively, but at the same time it provides only a few points of entry into the market. Some traders voice this as a drawback, but we do not go to the market for a few minutes, but in the long term. If pay enough time to the trade, the proposed system will allow you to achieve really excellent results.
That’s all for now. Got any questions? Just ask the expert!