With the advent of short-term contracts, which term of expiration equals one minute (and in some cases even less – it depends on a broker), there appeared a need for a trading system that would help the trader to trade within this time frame.
Why namely 60 seconds? Trading systems of work in different markets have always been based on the principles of work with contracts of 15 minutes, however, short-term trades make the trading process more dynamic, allowing you to get a specific result from financial activities in a very short time interval.
Option strategies 60 seconds is the starting point of trading short-term contracts. It is hard to understand now why namely this time interval takes place, and it is hard to find the exact answer to this question. It should only be noted that at the moment the brokers significantly expanded their arsenal with rapid contracts, allowing traders to make trades from 15 seconds to 5 minutes. This has led to the fact that digital contracts 60 seconds strategy have become very popular, because such techniques can be used for all time slots.
60 seconds strategy for binary options offers the trader to increase the profitability of their trade, if he prefers just such a short-term job.
In fact, there are a number of short-term strategies, from the simplest to quite complex. Take, for example, support and resistance levels. When the price is suitable for one of them, there is a high probability of a reversal. Of course, at this point it is better not to risk, as very often before the reversal, the price may some time bargain at a level. Moreover, there is the probability of false breakouts. But when the quotation of the underlying asset is repelled by the designated level, it is safe to trade.
For example, if we are talking about the resistance level as soon as the price will be reversed from it and go down, we can say that the market has a local downtrend. In this situation, you must wait till the price actually turns down and you can buy a Put lot. Otherwise, if the price comes to the support level, there is the probability that it will push away from it and go upwards. Again, it is not necessary to hurry. A trader should postpone buying a Call option until the price definitely turns upwards and 60 seconds strategy creates a perfect transaction entry point.
Are there any other 60 seconds strategies for trading binary options? Yes, there are. For instance, graphic technical analysis shapes. At the time of their formation completion, the price usually breaks quite strong levels and receives a powerful impulse which duration exceeds one minute. In this case you can safely buy a new lot with this term of expiration.
For instance, if we take a look at the ascending triangle figure, a trader cannot trade in the process of its formation. But you can buy a Call option when the price breaks through the upper bound in order to go beyond the model. The same can be said about the descending triangle. At the moment of penetration of the lower bound, which acts as a sufficiently strong support, the price gets a boost and a trader can buy a Put contract.
There are many other Binary Option strategies 60 seconds, which can be successfully used in the trade. In principle, any strategy that works for options with longer expiration, can be applied here.
That’s all for now. Got any questions? Just ask the expert!