A reversal is considered one of the main market conditions that determines the probability of making a profit or loss on binary options . If a trader does not guess the moment when the price changes direction, he loses money. Ignoring a reversal leads to big losses. At the same time, it is not always possible to understand whether the price will go in the opposite direction or whether there is a temporary rollback on the market, and the trend will maintain its current movement. However, if a trader believes that the second situation has arisen, then the player misses the moment when it was necessary to urgently close transactions or place a new order. By that time, the price has moved a significant distance. In this regard, the trader either loses a potentially profitable position or suffers big losses.
By using Quotex strategies in trading, you can avoid such a situation. The main principle of conducting transactions in such cases is to place orders in the direction in which traders go. And Quotex strategies allow trading in this format. This is especially relevant for binary options trading, since in this case, transactions are carried out on short timeframes , when signals from indicators appear frequently. The Quotex strategy, which is based on the principle of opening transactions when the trend changes, is based on three tools: Bollinger lines , MACD and SMA .
Before you start buying options, don't forget that you can reduce trading risks by using the Quotex Loss Cancel Promo Code . This will always allow you to cancel any $10 loss trade.
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How to Set Up Tech Tools in Quotex
Trading on a trend change involves working with a candlestick chart. This approach also recommends using highly volatile assets such as the US dollar.
To use this approach, you need to make the following settings in the indicators:
- MACD – default parameters;
- Bollinger bands - period 22 and deviation 2;
- SMA – period 10.
Within the framework of the described methodology, it is recommended to trade on a 15-minute time frame:
Conditions and nuances of using the trading methodology
Before you start trading, you need to wait for a strong trend. In this case, the chart will show several candles in a row, painted in the same color. You can open deals if at least 4-5 such candles have formed.
Trading operations are carried out after the price has rolled back. This can be seen if you use 15- and 5-minute charts simultaneously. But it should be taken into account that the given indicators can give false signals. It is possible that the instruments may indicate the need to open a deal due to a change in trend, but the price continues to move in the same direction after the rollback:
Rules for buying binary options
Orders should be placed within this method when there is an impulse movement registered on the 15-minute chart. After that, you should switch to the 5-minute time frame.
You should purchase Call contracts when:
- candlestick patterns are located above the Bollinger Line, going up;
- the price chart bounced off the moving average, which was going up;
- MACD is above the zero level.
You should buy Put contracts if:
- graphic figures are located below the Bollinger Line, going downwards;
- price chart from the moving average directed downwards;
- MACD is below the zero level.
The conditions described above must be met simultaneously.
Expiration in both cases is used in 3 candles.
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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 analyze all your questions on video.
See also:
How to open an account with Quotex
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