James Frangleton has shared one of his most reliable binary option trading strategies with Mike’s Facebook Signals Group, known as the Trend Breakout Strategy. As you can insinuate for yourself, this binary options trading strategy revolves around the formation of trends so access to a charting solution will be essential so one charting solution that we highly recommend and is free would be Free Stock Charts.
Trend breakout strategy demonstration
Once you have your charting solution up and running, you will want to make sure to use this Trend Breakout trading strategy with low volatility currency pairs such as the EUR/USD, USD/CHF, USD/CAD, NZD/USD and EUR/JPY. Once you have selected one or more currency pairs as your targeted assets of choice, the next step would be to change the time frame of your charting solution to a period of 5 minutes along with incorporate the Stochastic Oscillator indicator into your charting solution, which is mostly used to help investors determine whether the current market conditions of a particular asset are exhibiting signs of being overbought or oversold. Now, determining the current condition of an asset is relatively simple and straightforward; if the Stochastic Oscillator is at a value of 80 or higher it indicates to investors that the asset is currently overbought and if the value is 20 or lower it indicators to investors the asset is currently being oversold.
In order for a PUT investment to be called, we need a relatively strong bullish trend to be present while our Stochastic Oscillator is exhibiting a value of 80 or higher, if all checks out then we place a 5 minute PUT investment. Now on the other hand, if we see a strong bearish (downward) trend present and notice that our Stochastic Oscillator is showing a value of 20 or lower then we go ahead and place a 5-minute CALL reversal investment. All-in-all this strategy is quite simplistic and yields great trading results. To see this strategy in action, feel free to watch the video above.
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