Precise Entry is a strategy that is often used by traders in order to trade successfully.
This strategy allows the trader to obtain very accurate and exact signals for the purchase of binary options and determine the direction in which the price of the underlying asset will go in the nearest future.
This strategy is quite simple and can be applied even by inexperienced traders. If desired, even a novice will be able to modify this strategy slightly, complementing it with other tools. For example, by using binary options graphs a trader can stretch Fibonacci levels on the graph.
Fibonacci levels can help a trader to determine local support and resistance levels, and to see where the price can be developed for the short-term correction. Using Fibonacci grid in the strategy will help the trader to determine the point of binary option purchase more accurately.
Precise Entry strategy, as well as any other, has a certain set of support tools, which should be used by the trader. There is also a set of specific rules that must be followed. For example, for trading in accordance with this trading system only a daily time scale must be used. Other timeframes will not work for this strategy.
Regarding to the choice of a trading instrument or underlying asset, there are no restrictions. A trader can trade, for example, both a currency pair EUR-USD and, for example, USD-JPY. You can also trade any commodity indices or stocks. Trading strategy works equally well with all the tools.
In the binary option strategy Precise Entry can be used the indicator of binary options called Relative Strength Index. On this indicator there should be horizontal lines twenty and eighty. In accordance with the rules of this binary option strategy, the trend is determined by all the indicators that are used in the system. First of all, it is necessary to pay attention to the position of the indicator’s curve Moving Average with respect to the price graph.
In an uptrend, the moving average is below the graph, and in a downtrend, it appears above. At the same time, within the upward movement, Relative Strength Index at the same time will cross the line twenty, and in the binary options indicator’s graph Stochastic the intersection of its curves will happen and they will reverse upwards. When all of the above conditions are met, it is recommended to buy a Call option.
When the downward movement happens, as mentioned above, the moving average appears above the graph. At the same time, RSI must cross the line eighty, and the curves of Stochastic intersect at the top of the indicator’s graph. Once such a signal is received, it is possible to buy a Put option.
That’s all for now. Got any questions? Just ask the expert!