There are currently a huge number of traders in the world who trade binary options , and they all differ from each other not only in experience and knowledge, but also in their psychological types, which have the greatest influence on their trading approach and style. This is why some people like to choose options that expire in one day, week or month, while others cannot stand the trades for more than a few hours. But there are also traders who love turbo options, which last no more than five minutes, and this approach, designed for a quick deal and profit, is called binary options scalping.
Scalping on binary options – what is it?
Scalping on binary options is a type of trading that uses turbo options with expiration no longer than five minutes, and the goal is to get as much profit as possible in a very short time (some scalpers can make 50 trades per day) . An example scalper trade might look like this:
Note: it is worth noting that in classic scalping on the exchange, a glass or a tape of prints is used, while in binary options there are no such tools and scalping is called ordinary fast trading with short expirations.
You can use any strategy and indicators for scalping on binary options, but some of them are more adapted for turbo options, while others cannot always provide an exact entry point into a trade.
If we talk about whether scalping on binary options is suitable for beginners, then we can immediately say - no, since such a trading approach requires considerable trading experience, high stress resistance and competent rules of money management and risk management , since when making a large number of transactions There may be a long series of losses, which not everyone can withstand, both in terms of the trader’s psychological preparation and in terms of the deposit.
Timeframe and expiration in binary options scalping
As mentioned above, scalping on binary options depends on time and is performed only on small time frames and expirations. Therefore, it makes no sense to use charts longer than M5 (five minutes), and more often the expiration of scalper trades does not exceed 2-3 minutes.
More experienced traders use a combination of the following timeframes:
- H1 to determine the general trend .
- M5 for building levels and tracking the local trend.
- M1 to search for entry points.
Thus, the scalper trader begins his day by analyzing the hourly chart, where he can see the general trend in the market at the moment. The workspace might look like this:
On the left is the H1 chart, where you can see that the trend is upward at the moment, after which at the top right you can see a small flat on M5, and already on the bottom chart on the right buy a Call option upon a rollback to the Moving Averages , after which there was a good upward movement, suitable for expiration time is 1-3 minutes.
The “Elder's Three Screens” strategy works in a similar way, where the main idea is to trade with the trend.
Best time to scalp binary options
Scalping, like most trading approaches, requires a time when markets are at their most volatile, as these are when the most active movements occur that can bring good profits.
Therefore, the best time for scalping on binary options will be the European and American trading sessions :
This is when most of the news comes out and the biggest financial centers around the world open, so there are great trading opportunities most of the time.
But it is also worth noting that binary options scalpers do not wait for strong movements and it is enough for them that the price moves only a few points, which means that if you want, you can scalp at night, but the risks in this case will be higher, since it often happens that the market hardly moves and its range can be very narrow.
Types of scalping on binary options
There are different ways to scalp on binary options, and the most common of them are:
- Trading with the trend.
- Trading from levels.
Trading with the trend
Since scalping on binary options involves quick trades, professional scalper traders can ignore the trend, but beginners should not do this and at first trade only in the direction of the current price direction. The essence of trend trading is to buy options in continuation of the current movement:
As you can see, there is a downward trend on the minute chart, and on pullbacks you can buy Put options with an expiration of 3-5 minutes. It is better not to use an expiration of 1 minute, since the price does not always continue to move in the direction of the trend so quickly. To obtain accurate signals, you can use various indicators for transactions, including the Moving Average, which can show corrections very accurately.
Trading from levels
This approach is the most popular among binary options scalpers, as it allows you to use not only support and resistance levels , but also any graphic figures or patterns , which maximizes the number of transactions, and therefore the opportunities for profit.
An example of such transactions is trading on the breakdown of the “Triangle” graphic figure:
An aggressive entry can be trading immediately for a breakout, without waiting for the candle to close; expiration should not exceed 2 minutes. A less risky entry into a trade could be a rollback to the broken triangle (which will not always be exactly at the level); expiration should also not exceed 2-3 minutes.
Another example is classic trading in a range, when transactions are made inside the channel:
In this case, you can trade without indicators, since transactions are made when the price approaches the border, using an expiration of 2-4 minutes.
If you have difficulty drawing levels, trend lines or figures, you can use indicators that automatically build all of the above:
| TOP best indicators of support and resistance levels | Download |
| Support and resistance level indicator | Download |
| Trend line indicator | Download |
| Fibonacci levels indicator | Download |
| Price Patterns indicator | Download |
| Aurora Supply and Demand Zone Indicator | Download |
| Indicator of supply and demand zones AGATA | Download |
| Crystal scalping levels indicator | Download |
| Linear Regression Channel indicator | Download |
Pros and cons of scalping on binary options
If you plan to trade turbo options, then it is worth studying the pros and cons of scalping on binary options.
The advantages include:
- Opportunity to make quick profits.
- Trades can be made even on minor movements.
- You can use any assets and markets.
- There is almost no dependence on the global trend.
- You can even trade at night.
The disadvantages include:
- Trading experience and skills required.
- Market noise, which is inherent in small time frames, can be very disruptive to trading.
- High risks, as a large number of transactions are made.
Indicators for scalping on binary options
Of course, you can use absolutely any indicators or strategies that will be no less effective, but there are indicators that are adapted specifically for turbo options and quick trades, and perhaps they will be useful to many novice scalpers.
Scalper Dream indicator
This indicator has a histogram consisting of two colors, as well as a panel with information about the strength and direction of the trend. According to standard rules, options are bought when the color of the histogram bar changes and the trend strength is above 70%:
Download the Scalper Dream indicator
Binary Cash Comodo Indicator
The indicator is a signal indicator and displays entry points on the chart in the form of green and red arrows, which ultimately can be used either separately or together with other indicators:
Download Binary Cash Comodo indicator
Ultimate MACD indicator
The well-known MACD histogram indicator , which is constructed in the same way as the standard indicator, but has higher accuracy.
Transactions can be made both when crossing the zero level and when divergences appear:
Download the Ultimate MACD indicator
Laguerre indicator
Laguerre is an oscillator and helps identify market noise, as the indicator is very sensitive to any market movements. It is better to use it together with other indicators as a filter, since in this case its effectiveness increases:
Download the Laguerre indicator
Donchian Channel indicator
Donchian channels can help both determine the trend and find an entry point, but like the previous indicator, it works best in conjunction with other indicators, as it can generate quite a lot of false signals:
Download the Donchian Channel indicator
Conclusion
We can say with confidence that scalping on binary options can bring stable profits, but it is worth considering that such trading is not suitable for every trader, as it requires good psychological preparation and constant presence near the terminal due to the fact that transactions are made very often and in large quantities.
Beginners should remember that scalping is trading with the highest risks compared to other trading approaches, and therefore, before you start trading turbo options, you need to spend time learning scalping, and also test everything on a demo account , and only then This means switching to a real account.
See also:
How to make money on the Internet during the crisis of 2020
Binary options trading platforms
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