The Elastic Trader strategy is designed to buy binary options at times of increased market volatility . If the rubber band is pulled diligently in one direction, it will soon break and bounce back. The strategy works in a similar way: when the market moves too quickly and aggressively in one direction, sooner or later a price reversal will occur. For example, if the market is overbought, after some time there will be a great opportunity to sell. The Elastic Trader strategy, which will be discussed in this article, is built on this philosophy.

Binary options strategy Elastic Trader

Characteristics of the Elastic Trader strategy for binary options

  • Terminal: MetaTrader 4 .
  • Timeframe: any.
  • Expiration: 2 candles.
  • Types of options: Call/Put.
  • Indicators: ADX-Cross.ex4, DoubleSv-2.ex4, SowicX.ex4.
  • Trading instruments: currency pairs .
  • Trading time: 08:00-20:00 Moscow time.
  • Recommended brokers: Quotex , PocketOption , Deriv .

Installing Elastic Trader Binary Options Strategy Indicators in MT4

Indicators are installed as standard in the MetaTrader 4 terminal.

MetaTrader 4 instructions for installing indicators:

You can download a template for setting up the Elastic Trader strategy for free at the end of the article.

Review of Elastic Trader strategy indicators for binary options

ADX-Cross: indicator calculations are based on the formula of the standard Average Directional Index indicator , but, unlike the classic version, the new version of the indicator displays ready-made signals for opening a trade on the chart. The green arrow means buying a Call, the red arrow means buying a Put. Once signals are formed on the chart, they do not move or disappear. In other words, they are not redrawn .

Indicator for binary options ADX-Cross

The settings provide the ability to edit the indicator period. The default value is "14".

Setting up the indicator for binary options ADX-Cross

DoubleSv-2 : a unique market analysis tool that informs the trader about overbought and oversold currency pairs . A purple frame signals an overbought market and a possible price decline. The green frame indicates that the market is oversold and the price is expected to rise.

Indicator for binary options DoubleSv-2

SowicX : fast oscillator for any timeframe . The rules for working with the indicator are as follows: the purple bar of the histogram is a Call signal, the red bar is a Put signal. The best time to enter the market occurs when the indicator crosses the zero mark, as well as when the indicator and price diverge .

Oscillator for binary options SowicX

In the indicator settings, as in the case of the ADX-Cross settings, it is possible to adjust the period (period default value is “10”) and smoothness (smoozing default value is 2”).

Setting up the indicator for binary options SowicX

Rules for trading according to the strategy for binary options Elastic Trader

The strategy is to determine on the chart the moments of overbought and oversold assets and predict the right moment to place your bet and receive income. The following indicators are used to analyze the market situation:

  • DoubleSv-2 – displays overbought and oversold zones with purple or green rectangles;
  • ADX-Cross – generates directional signals above or below the candle;
  • SowicX – confirms the ADX-Cross indicator signal with the histogram color and position relative to the zero mark.

Strategy rules for buying a Call option :

  1. The price has left the oversold zone (green square).
  2. A green up arrow has formed.
  3. The histogram is above the zero mark (magenta).

Before buying a Call contract, you need to wait until the market is oversold; this is the basis of the entire strategy and the first signal for the trader. The entry point is formed by the upward arrows of the ADX-Cross indicator and is confirmed by the purple color of the histogram of the SowicX indicator. The best moment to enter is when the SowicX oscillator crosses the zero mark, as well as at the divergence of the indicator and price.

Buying a Call option using the Elastic Trader binary options strategy

Strategy rules for buying a Put option :

  1. The price has left the overbought zone (purple square).
  2. A red downward arrow has formed.
  3. The histogram is below the zero mark (red).

That is, the same rules as for the Call contract, only in the opposite direction. All market transactions are opened only after the signal is confirmed by the SowicX oscillator.

Buying a Put option using the Elastic Trader binary options strategy

Trading is not limited by the time of the trading session , but it should be noted that the best results of the strategy are observed during periods of increased market volatility: from 12:00 to 20:00 Moscow time, or from 16:00 to 20:00 Moscow time. If you prefer intraday trading, we recommend that you refrain from opening transactions after 20:00. At this time, the market is usually characterized by slight volatility and enters the flat stage.

Trading time using the Elastic Trader binary options strategy

The expiration time of a binary option is limited to 2 candles:

  1. M1 – expiration up to 2 minutes.
  2. M5 – expiration up to 10 minutes.
  3. M15 – expiration up to 30 minutes
  4. M30 – expiration up to 60 minutes.
  5. H1 – expiration up to 2 hours.

Signals based on the Elastic Trader strategy for binary options

The chart below shows an example of how the strategy works on the EUR/USD currency pair, M5 timeframe:

Buying binary options EUR/USD strategy Elastic Trader

Call trade : the price has left the oversold zone and a green signal has formed, confirmed by the oscillator. An excellent time to buy a Call option at the end of a trend pullback with minimal risk.

Pu t trade : exit from the overbought zone and a signal with a red down arrow confirmed by the oscillator. The purchase of a Put option occurred at the very beginning of the trend reversal and was accompanied by a rapid drop in price almost immediately after the indicator signal.

Please note : the price movement after the Call and Put contracts began with the “Absorption” reversal pattern. Analysis of Japanese candlesticks can help during binary options trading by acting as an additional filter for all indicator signals.

Conclusion

Analyzing the market for overbought and oversold conditions to look for opportunities for price growth or decline is not new. It has long existed in the form of popular indicators such as Stochastic .   RSI , Bollinger Bands and so on. But, unlike classic indicators , the Elastic Trader strategy is a ready-made trading tool for successful trading in the binary options market. The system indicators show good results in real time, do not lag or redraw. Simple and understandable rules are accessible even to a beginner, and some elements of the strategy can be useful even to an experienced trader.

Important: the article and the trading rules described in it are for informational purposes only. Before using any strategy, we recommend testing its operation on a demo account . Financial markets are a high-risk business area that requires daily adaptation, adjustment of the trading plan and compliance with capital management rules .

Also, choose only a trusted broker from our rating of binary options brokers .

Download the Elastic Trader strategy for free

Download

Can't figure out how this strategy or indicator works? Write about it in the comments to this article, and also subscribe to our YouTube channel WinOptionSignals , where we will definitely answer all your questions in the video.

Binarium

See also:

Technical analysis in binary options trading

Will binary options be closed in Russia in 2021?

Psychology in trading - what does a beginner need to know?

Current bonuses and promotional codes for 2021

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Богдан
Богдан
В принципе тоже самое что и стохастики и рси ай, но нарисовано по другому.
05 September 2023
Answer
Владимир
Владимир
Как всегда, работает на тренде. если понадеяться, что в данный момент тренд, никакой стратегии не надо.
ILUA, если понадеяться... так в этом и стратегии помогают, чтобы надежды оправдывались надёжнее. Неплохая на вид стратегия...
31 August 2022
Answer
ILUA
Как всегда, работает на тренде. если понадеяться, что в данный момент тренд, никакой стратегии не надо.
28 September 2021
Answer
BLVCK
Интересно было бы посмотреть на результаты работы системы с уровнями поддержки/сопротивления... Если стратегия разворотная – это как раз то что нужно.
28 August 2021
Answer
Алина
Алина
Если стратегия работает как на скриншотах – то я нашла свою любимою стратегию ;) ;) ;) Пожелайте мне удачи в тестах! ;)
28 August 2021
Answer
Сергей Палыч
Спасибо за новые стратегии и подробное описание правил входа! Информации по бинарным опционам на русском не так уж и много. Читаю только статьи на вашем ресурсе.
28 August 2021
Answer
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