Price Action

Trading Strategies
for Binary Options
By Benjamin Hübner
http://binary-options-brokers-reviews.com

Risk Disclaimer
Risk Disclaimer​. ​Trading​ Forex, CFDs and ​Binary Options​ carry a high level of ​risk​ and may not
be suitable for all investors. The high degree of leverage can work against you as well as for you.
Never invest money you can not affort to lose!

Copyright Notice
No part of this book may be reproduced in any written, electronic, recording, or photocopying
without written permission of the publisher or author. The exception would be in the case of brief
quotations embodied in the critical articles or reviews and pages where permission is specifically
granted by the publisher or author.

Although every precaution has been taken to verify the accuracy of the information contained
herein, the author and publisher assume no responsibility for any errors or omissions. No liability is
assumed for damages that may result from the use of information contained within.

Introduction
If you want to succeed with binary options or Forex trading, you need to follow your
trading strategy and avoid emotions like greed or fear! Also ensure to use a proper
money management, never invest more than 1-2% (Max. 5%) in a single position. On
the following pages, I will show you my two main strategies for binary trading (And
Forex Trading as well), feel free to optimize them for your trading style and the
markets you trade!

Attention: This is only the Strategy Guide for my Price Action Trading Strategy!
Ensure to get my full course for binary options by ​clicking here and signing up​!
 Tips to Succeed with binary options
Start inside a demoaccount and went to a small real money account when you
made some demo profits (Make at least 100 Trades or more)
Avoid short expiration times! Start with 10+ minute binary options, even better
with 30 minute Options!
Set your limit: Set a win or lose limit for a single day! For example stop
trading when you lost 3 positions, or when you won 5 position! What ever
happens first! (This helps to avoid greed and you can not lose your entire
capital in one single day, just becourse you traded the wrong market!)
Always take a look inside the economic calender to avoid trading 30 minutes
before and 60 minutes after economic news!
Write down your trading results and analyze them each weekend for example!
In which markets works your strategy best, when you have the best results and
so on! Never stop to optimize your trading!
Start witha trend trading strategy, and ensure to only trade in the trend
direction!
Learn additional methods to analyse markets. (Tip: Elliott Wave theory,
Volumen/Chart Divergence, Divergence analysis, Candlestick Formations)
Every trading strategy is just as good as the person choosing the markets to
trade! Ensure to read ​this post​ to get an idea when to trade and when not!

Attention:​ Binary Options are not easy to master! Ensure to first start out with a
demo account and start with small investment amounts afterwad! LEARN TO
CONTROL YOUR EMOTIONS!

My Trading Strategy in Short

Basically, I wait till the price reaches a specific level (Defined by Trendlines, Support
and Resistance lines or Moving Averages) to see how he reacts!

Afterwards, I look for a confirmation to verify the reaction and to trade it! Here you
have many options, I´m using mainly the Stochastic Oszillator and RSI, as well as
Candlestick Formations.

If you want to learn more about Candlestick Formation and how to use them, i
suggest to check out the Candlestick Trading Bible by ​clicking here​!

Timeframe – Expiration Time Ratio

I normally trade binary options with a expiration of 3 -15 minutes, depending on the
timeframe I´m using for analyzis! 2 – 5 times the chart timeframe is a good expiration
in my experience! If you are not certain that your trade will hit a trend movement, use
shorter expiration times! If you are certain about the trend direction, but not when the
move happens, you can use slitghly longer expiration times!

Tip:​ A common mistake is to enter the trade to early, so try to wait a bit longer
before you enter the trade! If you see that you entered the trade to early, you can
place another position with the same expiration date/time (exactly the same time, not
the same timespan!) - Always respect your money management!
How to Draw Trendlines / Support and
Resistance Lines
Support lines are the Chart Levels​ below the actual price showing levels of
Support – the price tends to stop a downward movement on these levels to start
moving up again! Connect the lowest points in the past with a horizontal line to draw
support lines! When the price breaks through, a support line becomes a resistance
line!

Resistance Lines​ – Just like the Support Line, but above the actual price. When the
Resistance line is hit by the price, there is a good chance that the price will stop its
movement and reverse downwards!

A ​real breakthrough ​of a Support or Resistance line is often followed by a

beginning trend and a strong trend move!

Trend lines are very similar, they are just used inside strong trends while Support and
Resistance are used for side movements!

Inside a downtrend,​ connect the extreme HIGHs with each other to draw a line
above the actual price! As long as the price is below the line, it can be seen as
downtrend! When the line is broken, a up movement may follow!

Inside a uptrend,​ connect the extreme LOWs with each other to draw a line above
the actual price! As long as the price is above the line, it can be seen as uptrend!
When the line is broken, a downward movement may follow!

Practice this for some time, ensure to zoom out to see earlier price movements and
choose better Support and Resistance Levels. (Tip: Draw your lines one timeframe
higher as you trade. These lines have more impact than smaller support or resistance
lines!) Also take a look backward to see how well this can work!
Moving Average as dynamic resistance
Add a Moving Average with 24 periods to the chart! You can use the line shown
inside the chart as dynamic trendline, always redrawing itself!

Stochastic and RSI to optimize results

Both indicators, the Stochastic Oscillator and the Relative Strength index are so
called oscillators. Their value moves between 2 or around 1 Level! The most
oszillator indicators are made for sideward markets, trend moves can generate false
signals – keep this in mind!

RSI ​– When the RSI is above 70%, the market is called overbought and the chance is
high that a downward move follows soon! When the RSI is near 30% or lower, the
market is called oversold and the chance is good that the price will start moving
upwards!

The way I´m using the RSI: When the price reaches a line, and you are not sure if he
breaks through or stops to reverse, take a look at the RSI. Is the RSI inside the same
extreme level (Inside a upward trend above 70%) do not trade as the chance is good
that a reverse movement will follow first! When the RSI is near the opposite extreme
it may be a good opportunity to trade!
Here in this example, I´ve marked the points where the Price touches a line, while the
RSI tells me it will bounce again! But you can see as well that it is not certain to
100%. Inside strong trends the RSI may move for a while inside the extreme area!

Tip:​ You can use the 30% and 70% line as signal line. When the RSI crosses the 30%
line upwards, it shows a buy signal, if the 70% line is crossed downwards it shows a
down signal! If this happens on the specific trendline/resistance/support line it may be
a good trade entry!

Stochastic Oscillator​ – This Indicator is similar to the RSI, but it shows 2 lines
between two maximal levels. Just like the RSI, the Stochastic also shows Overbought
and Oversold areas inside the Chart. I´m using the Stochastic just like the RSI. In
addition, I wait till the faster moving​ line(Stochastic) crosses the Signal-line (the slower line)
in the direction supporting my trade!

Other ways to confirm price movements

Another method to verify breakthroughs or bounces is to wait for a candle to cross or
touch the trendline (Or support/Resistance). When the LOW or HIGH of the crossing
candle is crossed in the same (or opposite) direction it can be a sign for a movement
in this direction, let's have a look at a example:
Candles marked with 1 are the crossing candles, when the price crosses the HIGH
level it is a call signal, if it crosses the LOW level of the crossing candle it is a put
signal! Depending on the relative position of the Trendline it is a break through or a
bounce! The first 1. shows a bounce, as the down move stops here and a up move
begins! Afterwards, all marked candles are showing a break through! Depending on
the expiration times, all would be a winner! (Maybe even the first bounce from the
upper line!)

Tip: You see the price often touches the line to move back again and breaks through
some time later on you can look specifically for this situation for even better results
(See below).

These are the single parts of my strategy, now you just need to put them together!

First Step​ – Draw trendlines and support resistance lines and add a Moving Average
with periode 24 (This is not written in stone, try other settings if you like – longer
timeframes here result in stronger Trendlines, so you can add another MA with 50 or
70 for example to see the overall market trend easily)!

Tip:​ Do this inside the 15 and 5 minute chart. And do not delete old lines. They may
become relevant again soon!

You can switch to line charts and just connect the extreme highs and lows with each
other to draw​ ​trendlines. Try to connect them with horizontal lines to draw support
and resistance!

Also add the RSI Indicator (Period 7) and the Stochastic Oscillator (Settings: 5/3/3)

Ok, you chart setup is ready! ​Now it is time to wait till the price comes near one of
your lines, or the moving average, when this happens you need to take a closer look!
Depending on the tools you can use, here are two specific strategies I´m using:

Price Action Strategy Without Indicator

When the price touches a line (Don´t even needs to be drawn when you got some
practise), or breaks it, wait till the next candle starts.

When the upper max. level of the breaking candle is broken upwards, buy a call
option with 3-5 times the timeframe as expiration!

When the lower max. level is broken downwards, buy a put position with 3-5 times
the timeframe as expiration time! Here is an example for a call signal :

The red line shows the entry level, as soon as it is broken upwards, buy a call option
with 3 – 5 times the chart timeframe! (The candles where this trade would expire are
marked with a red line)

You can optimize this strategy by concentrating on a specific situation:​ The price
often touches a line (or breaks it for a short time), in order to moves back to break it
afterwards with a strong movement, let us have a look at a few examples :
The situations marked with 1 are showing a situation where the price bounces first, to
break through afterwards! You can easily better your results when you only trade the
second break through using the method above!

The second situation you can use can be seen at point 2, here is a break through
followed by a short setback, bouncing on the support/resistance line, this bounce can
also be traded with good results!

Price Action Strategy using RSI and Stochastic

Even better is, when you are able to add the RSI and Stochastic indicator (And the
MA to get automatic trendlines if you like) to the chart (Settings: RSI Periodic 7 and
Stochastik 5/3/3).

Now you can use the cross inside the stochastic as well as the Oversold and
Overbought Lines inside the Stochastic and RSI to verify a break through or bounce!

When for example the price moves upwards to a resistance line, and the stochastic
and RSI are both in the overbought area (Near the 70% or 80% line, depending on the
indicator) the price may bounce first before he breaks through. When both indicators
are far away from the extremes, or even on the opposite extreme, there is a good
chance that the price will directly break through!
The first point is a bad example, as the price has broken the first line, even in the
overbought area. The second line is almost touched and the stochastic cross as well as
the RSI cross downward is a good sign for a bounce in this case! (Stochastic cross
inside the oversold area is marked with 2). 3. Shows a bounce on a line not drawn
here, but both, stochastic and RSI are inside the overbought area!

Number 4 could be a good Call position trade entry, when the stochastic crosses
upwards as well as the RSI!

Keep in mind that there is not a perfect strategy. Learn to choose the best markets to
trade for the best results, read this article to learn more about ​how to choose the best
markets to trade​!

Thanks for your interest in my strategy! Ensure to follow me on the major social
networks to ask your questions, get help and more interesting information about
binary and forex trading in the near future!

Do not miss to comment and rate my Facebook page if you liked this information –
Thanks!

Follow me on Youtube​ (Here you find many videos about binary options and my
strategies)
Facebook Group for binary Trading
Facebook Page for binary Trading
Twitter Account​ about binary options and trading

More Information about binary

trading

Choosing the Best Broker for Binary Options

It all starts with a good binary options broker providing a Demo Account as well as
all other aspects a good broker needs to offer! ​Click here​ to learn how to choose a
good broker and which brokers I'm using! Below are my favorite binary options
provider you can choose from!

Pocket Option​ - Good Broker for traders worldwide providing many trading tools,
high returns and fast deposit / withdrawals! They also offer social trading,
tournaments and much more interesting features! Pocket Option even accepts traders
from US and EU countries!

Click here to create a free demo account or check out my detailed ​Pocket Option
Review here​!

Olymptrade ​- Olymp trade is another good broker for binary options you can use as
long as you are not living inside the EU or USA! They also provide many trading
tools, high returns, a fast trading experience, many bonus offers and much more! You
can ​check them out here​!

Helpful Tools for Binary Options Trading

There are many signal systems, automated trading systems and more for binary
options, believe me the most of them are sh**t! Below are a few tested tools and
coaching programs, some free some paid, I found useful to trade binary options or
forex! Ensure to sign up to my newsletter for actual tools and strategies for binary
options trading!

Professional Chart Software - Metatrader 4

The Metatrader 4 Software is a professional software to analyse markets and trade

Forex / CFD, even with automated trading systems! The Software can be used for
free, you just need a demo account with one of the many forex broker out there! I
personally prefer ​ICmarkets​, but as long as you are just using the chart software for
binary options, it makes no big difference which Forex Broker you choose!

Free Tools
Economic News Calendar in Realtime!​ Your first action in yoru trading day should
be to check the economic news events for the day (at least if you trade forex binary
options), so ​click here​ and bookmark this page​ to check the news before trading!

Metatrader4​ – One of the leading chart software tools out there! You can get access
for free by signing up for a free Forex Demo Account by ​Clicking here​!

VFXalerts ​– Free Signals for binary options trading! (Paid Upgrade is recommended
– 30USD per Year) Just sign up and read the instructions to find out how to use them!
Click here to learn more​!

TopForexPairs​ – This is a free service sending you the most active forex pairs per
email each day! Just ​sign up with your email by ​clicking here​ ​and you are ready to
go (Completely Free)

Free Trend Analysis​ – Just enter your email and the asset you want to monitor, and
get a detailed trend analysis per email each day! (perfect to monitor your most traded
assets on autopilot!) ​Click here to sign up​!

My Exclusive Binary Options Newsletter – Sign up to my newsletter for more

information about binary trading, free tools and reviews and my custom Metatrader
Signal indicator … ​Click here now to Sign Up​!

Paid Programs/Coaching
Candlestick Bible​ – Learn to read and use candlestick patterns to trade with better
accuracy! This information can be applied to any strategy you are using to trade
binary options. Click here to learn more about this ​candlestick trading guide​!

MotiveWave​ – Advanced chart analysis and elliott wave coaching/tools, test this
service for 2 weeks completely risk free … ​click here​!