Binary options strategy Day or Hour is quite simple to use. It is based on three indicators and two time periods, one of which gives a preliminary signal and the second one – a direct signal to buy binary options.
The essence of the method is to ensure that all three indicators show the same signal.
For example, if the candle closes higher than the simple moving average, and the RSI and MACD are turned upwards, you can buy a Call option. Otherwise, if both indicators are pointing down, and candle closes below the moving average, you can buy a Put lot.
Binary options strategy Day or Hour at its core has the analysis of time-scales – a four-hour and a daily. Trade is only recommended in the main motion direction. You can use this strategy on the one-hour time scale also. However, it was designed specifically for a four-hour. For this reason, it is recommended not to go down to the lower time periods and remain within those under which the strategy was developed.
Within the binary option strategy Day or Hour you can trade any trading tools that are offered by the binary option broker. The strategy is based not only on the above-mentioned periods, but also on the simple moving average. It is through this curve a trader can determine the direction of the market movement. Also, in this strategy binary option indicators are used:
- Strength Index
In order to obtain a trading signal it is necessary to determine what was the closing price of the candle relatively to the simple moving average last day. It is important to remember that if the candle closes above the moving average on the four-hour time scale, it is necessary to consider only signals to buy Call options. In cases where the daily candle closes below the simple moving average on the four-hour time scale, it is necessary to look for opportunities to buy only Put options. Might be such that it is rather difficult to determine whether a daily candle has closed above or below the simple moving average. In this case, it is desirable to skip the trading day.
Once the conditions of the trend determination are met, it is necessary to move to a four-hour time scale. Here it is also important to analyze not only the graph itself, but also the indicators of binary options. At the four-hour time scale you must first define a candle, which would close above or below the simple moving average. Considering the binary option indicator Relative Strength Index, you need to determine where its curve points (up or down). As for the indicator MACD, you must trace the moment when the curve crosses the zero level either top-down or bottom-up.
The signal to buy Put options is the closure of the previous daily candle below the simple moving average. At the four-hour time scale a candle should also close below the curve. At the same time, the binary option indicator Relative Strength Index has to go in the direction of the price that is to be turned down. As for the indicator MACD, its curve must cross the zero level from top to bottom.
Buying a Call option is possible under the following conditions. On the daily graph the previous day’s candle should close above the moving average. At the four-hour time scale it is also necessary to find the candle that would close above the simple moving average. Thus, an indicator Relative Strength Index is to be reversed upwards, and MACD is to cross the zero line upwards.
That’s all for now. Got any questions? Just ask the expert!