We continue to publish interesting strategies that can be used to trade binary options. Today almost every successful trader cannot do without such systems. Binary option strategy Profitable Absorption is just sufficiently gainful, which can be seen from its name and, most importantly, simple.
This strategy can be safely attributed to the category of non-indicated. This means that the task of the trader becomes much easier, because he does not need to delve into the essence of a particular algorithm. On the other hand, in order to use such a strategy, it is desirable to have at least a basic knowledge of Japanese candles, as well as support and resistance levels.
Although today many novices first of all open the manual by Steve Nison and devote a certain time to studying Japanese candles graphs and analysis methods that they offer. But even if the trader does not entirely understand this technique, we will help to understand how this simple binary option strategy Profitable Absorption works.
Let’s take a look at the screenshot of the graph.
We specially allocated an area on the graph, where we could open a transaction according to this strategy. As you can see, there is nothing really complicated here! We emphasized the support level from which price has bounced off with the black line. The level of support in this strategy is kind of a trading signal filter and this must be remembered.
Also, it can be seen on the graph that the result of trading according to this strategy was above all expectations. Although for binary option traders it is best of all to open only one transaction at a signal.
It is very easy to get a trading signal according to the strategy. And it works fine on different timeframes, as well as with different underlying assets, which makes it universal. Primarily, it is necessary to determine the support and resistance levels on the graph. Those traders who already know what it is will be able to identify them easily. For the rest we will explain, without going into details (as this information in a more extended form can be found on our website in the related article) that these are levels which play the role of barriers to movement of the underlying asset price.
Binary option strategy Profitable Absorption actively uses these levels as trading signal filters. Further, when the support and resistance levels are determined, it is necessary to a wait for a signal. What is the signal for this strategy?
After the previous trend went to one of the levels, the market may reverse and a candle appears in the opposite direction. So, such reversal candle, that with its body completely closes the previous one and goes beyond it, will be a signal to buy a binary option. This model is called the Absorption in the analysis system using Japanese candles. At this point, when the absorbing candle closes, a final confirmation of the signal is received and a trader can buy an option, depending on the direction of this candle.
Thus, the binary option strategy Profitable Absorption offers any trader good opportunities for earnings. It is really very simple and requires no special knowledge in the field of technical analysis. In addition, this strategy does not use indicators, which greatly facilitates the work of the trader to find signals.
That’s all for now. Got any questions? Just ask the expert!