10 BINARY OPTIONS STRATEGIES

Contents
Introduction .................................................................................................................................................. 2
What are Binary Options? ......................................................................................................................... 2
Why trade Binary Options? ....................................................................................................................... 2
Advantages of trading Binary Options: ..................................................................................................... 2
Major Economic News Strategy .................................................................................................................... 3
Aggressive Trading Style Strategy ................................................................................................................. 6
Straddle Strategies ........................................................................................................................................ 8
Corrective Strategies ...................................................................................... Error! Bookmark not defined.
Retraction Strategies...................................................................................... Error! Bookmark not defined.
Pair Option Strategies .................................................................................... Error! Bookmark not defined.
Hanging Man and Shooting Stars Strategies.................................................. Error! Bookmark not defined.
Binary Options Breakout Strategy ................................................................. Error! Bookmark not defined.
Binary Option Put Trade Using Breakout Strategy .................................... Error! Bookmark not defined.
Support / Resistance Strategy........................................................................ Error! Bookmark not defined.
Binary Option Trades Using Support/Resistance Strategy ........................ Error! Bookmark not defined.
Follow-the-Trend Strategy ............................................................................. Error! Bookmark not defined.
Binary Option PUT Trades Using Follow-the-trend Strategy ..................... Error! Bookmark not defined.

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 10 BINARY OPTIONS STRATEGIES

Introduction
Welcome to the exciting world of Binary Options where you can earn up to 81% on your money as
quickly as 60 seconds.

We have reviewed many trading strategies and have chosen those that best suite binary options trading.
We have included strategies that range from beginner to advanced. We will provide you with ten
proven strategies that you can use to be successful in Binary Options trading.

Understanding a tested trading strategy is not the only component needed to become a successful
trader. You must also maintain proper discipline and composure as you trade. The final ingredient to
begin earning 75% a minute is choosing a broker to implement your strategy. For your convenience we
have paired each strategy with a trusted broker where you can start earning your 81% today!

What are Binary Options?

Binary options are a simple way to participate in the movement of financial assets. They are Binary in
nature in that there are only two possible outcomes. Either you win the predetermined profit % or you
lose your investment.

Why trade Binary Options?

Binary Options affords traders and investors alike the opportunity to gain huge returns on their
investments up to 81% in short time periods without the need for a large capital investments.

Advantages of trading Binary Options:

 High Returns
 Short Expiries
 Small Investments
 No Commissions or Fees
 24/7 Trading
 Access to multiple markets

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 10 BINARY OPTIONS STRATEGIES

Major Economic News Strategy

The publication of key economic national data is highly anticipated by investors as
they can produce substantial price surges. Excellent examples of these types of
events that are regarded by traders as of the utmost importance are: National
Interest Rate Changes, US Non-Farm Payroll, US Trade Balance and US
Unemployment Claims, etc.

Trader Level: Intermediate

Risk Level: Medium

The dates and times of all the important releases are published well in advance and
are accessible to everyone. Your Forex broker will normally provide you with this
information in the form of an economic calendar, as shown in the next diagram.

Trading news releases can be a very lucrative activity if performed correctly.

Basically, there are a number of ways of performing this task. In each case, you

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 10 BINARY OPTIONS STRATEGIES

need to focus on those major news releases that are capable of generating large
increases in volatility and, as such, provide the best opportunities of good profits.

You can improve your chances of success if you learn how to detect the
consolidation phase of the currency pair just before a news release. Price tends to
become more stable at these times because the market is anticipating the release.
This means that price is trading within a tight range that is capped between a
ceiling or upper resistance and a floor or support, as displayed on the following
diagram. Traders are hoping that the event will increase volatility so that it is
capable of creating a breakout with sufficient momentum to cause a price surge.

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 10 BINARY OPTIONS STRATEGIES

I. Identify News Release: Use the economic calendar to identify the times of a
major news release.

II. Identify Trading Range: Select a currency pair that is range-trading prior to
the news release.

III. Identify Support/Resistance Levels: Find the resistance and support levels
by simply noting the highest points for resistances and the lowest values for
supports, as shown on the chart above.

IV. Initiating Trade: Execute a 60 second CALL binary option if price surges 10
pips above the ceiling of the range. Alternatively, activate a 60 second PUT
binary option if price plunges 10 pips below the floor. Both options need to be
based on the same chosen currency pair.

This strategy provides good opportunities for exploiting major economic news
releases for quick profit. As such events are notorious for whipsaw actions, your 60
second trades provide the optimum opportunity to secure profits before price has
time to retract.

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 10 BINARY OPTIONS STRATEGIES

Aggressive Trading Style Strategy

One-touch binary options are ideally suited to those traders possessing more
aggressive temperaments because they provide very high rewards, i.e. up to 500%
albeit at high levels of risk. These are best used when assets are trading distinctive
trends or when levels of volatility are high. Consequently, you should steer well
clear of one-touch binary options until you have acquired sufficient skill and
knowledge to competently handle their increased risk exposure.

Trader Level: Advanced

Risk Level: High

Essentially, you will finish in-the-money if the price of the underlying asset of your
one-touch binary option strikes a preselected value at least once before expiration.
If price fails to achieve this goal, then you will close out-of-the-money and will lose
your deposit. If the target price is higher than the opening value, then you need to
instigate a CALL one-touch option. In contrast, if the target price is beneath the
opening value, then you should open a PUT one-touch option.

For example, consider that the Bank of England has just announced that it has
lowered its interest rates in order to bolster the faltering UK economy. After
investigating the reasons for this decision, you conclude that the GBPUSD will drop
amid increasing levels of volatility. You select a PUT one-touch binary option based
on the GBP/USD as shown in the next diagram.

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 10 BINARY OPTIONS STRATEGIES

I. Identifying Volatility: Detect an asset that is displaying high levels of

volatility on its charting charts.

II. Record Key Parameters: Note the target price, the payout ratio; the
rebate ratio and the listed expiry time of the applicable asset.

III. Initiate Trade: Enter a deposit and execute a CALL one-touch option if you
have concluded that your chosen asset will rise in value. Alternatively,
activate a PUT one-touch binary option if you have deduced that the price of
your price will plunge in value.

IV. Monitor the Trade: You can track your binary option by using a graph, such
as the one shown on the right of the below diagram. Usually, if the color of
the graph is green then this indicates that the trade is currently in-the-
money.

If red, then your option is presently out-of-the-money. The red vertical line
represents the time your option will expire.

You can buy one-touch binary options throughout every trading day and they will
expire at various times chosen by your broker. You can even initiate them during
the weekend. The following Friday will then be used as the expiry time.

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 10 BINARY OPTIONS STRATEGIES

Straddle Strategies
Straddle strategies are renowned for being straightforward and effective. This is
because the price of assets tends to move in a series of waves with each one
possessing a crest or top and a trough or bottom. The tops and bottoms of these
wave formations are considered to be major reversal patterns that signify a
fundamental change in direction of the current trend. 

Trader Level: Immediate

Risk Level: Medium

Straddle strategies are most effective when volatility is low and price is trading a
constricted range. Essentially, you will activate binary options that straddle the tops
and bottoms of this range.

New binary options should then be opened in the opposite direction as price
rebounds against the resistance (top) and support (bottom) levels. For example,
open a new PUT option if price ricochets against a top. Similarly, execute a new
CALL option if price rebounds against a bottom. The following chart shows these
features.

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 10 BINARY OPTIONS STRATEGIES

The above chart shows a series of waves consisting of Top1, Bottom 1, Top 2,
Bottom 2, Top 3 and Bottom 3. To exploit this pattern, you need to open PUT
option 1 at Top 1. As price rebounds from Bottom 1, a CALL option should be
opened. Similarly, PUT option 2 needs to be opened as price rebounds from Top 2.

Consequently, one of the prime objectives of the straddle strategy is to detect tops
and bottoms as accurately as possible. Many successful traders base their
strategies on the famous trading maxim which states ‘buy low and sell high’.

The basic steps to open a straddle strategy are as follows:

I. Detect a Range-trading Asset: Identify assets that are ranging trading by

locating those whose price has been advancing in a horizontal direction for
some extended time. The range of movement should also be restricted by a
ceiling or top and a floor or bottom. Ideally, price should have ricocheted
against these levels numerous times.

II. Resistance and Supports: Wait till price bounces against either a support
or resistance level. Ensure that the level holds by confirming that the next
candlestick closes above a support (CALL) or beneath a resistance (PUT)
option. Examples are displayed in the above diagram.

Opening Trades: If these conditions are confirmed, execute CALL options

whenever price rebounds against a support and activate PUT options after it
ricochets against a resistance.

To develop successful straddle strategies, many traders study the weekly and
monthly charts of assets in order to identify tops and bottoms. In particular, they
are especially interested in those levels that price has bounced against a number of
times. Once achieved, they then join consecutive peaks to form resistances and
consecutive troughs to form supports. These lines can then present good trading
opportunities whenever you can detect price rebounding against them.

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