Spider Strategy is a simple binary options trading strategy that is more suitable for beginners than for experienced traders. The Spider Strategy is based on signals in the form of arrows and trend sloping lines , thanks to which it allows you to start trading immediately after installing the indicators . The rules for opening trades will be clear even for novice traders without experience, since all that is required is just to be a little disciplined and wait for the exact signal .
Characteristics of the Spider Strategy for binary options
- Terminal: MetaTrader 4 .
- Timeframe: M1.
- Expiration: 1 minute.
- Types of options: Call/Put.
- Indicators: Spider Indicator 1.ex4, Spider Indicator 2.ex4, Bulls Bears Signal.ex4.
- Trading instruments: currency pairs , cryptocurrencies , stocks, commodities.
- Trading hours: around the clock.
- Recommended brokers: Quotex , PocketOption , Deriv .
Installing strategy indicators for binary options Spider Strategy in MT4
Indicators are installed as standard in the MetaTrader 4 terminal.
MetaTrader 4 instructions for installing indicators:
The template for installing the Spider Strategy can be downloaded for free at the end of the article.
Review of Spider Strategy indicators for binary options
The strategy works based on several indicators:
- Spider Indicator 1;
- Spider Indicator 2;
- Bulls Bears Signal.
Spider Indicator 1 . The indicator draws signals on the chart in the form of up or down arrows. Signals are generated based on calculations of the classic MACD indicator , where the period of the fast Moving Average is 1, and the period of the slow one is 34.
Spider Indicator 2 . This indicator uses data from the ADX indicator and draws signals for entering the market with green or red dots. These points confirm the signals of the Spider Indicator 1 indicator, but they can appear separately on the chart.
The Bulls Bears Signal indicator draws sloping lines along the high/low to determine the presence of a trend . The direction of the line down means a bearish trend , the direction of the line up means a bullish trend. A price breaking through a sloping trend line up or down may be a sign of the end of the movement and a trend reversal.
The Bulls Bears Signal indicator is useful not only in this strategy. This is a self-sufficient tool for analyzing the market, finding an entry point and opening a safe transaction in the direction of the main price movement. But if for some reason this indicator does not suit you, you can use any other trend indicator .
Trading rules for binary options Spider Strategy
The strategy works at the intersection of signals from the Spider Indicator 1 and Spider Indicator 2 indicators. To open a trade, you need to wait for a simultaneous signal from two indicators on the same candle.
How it looks on the graph:
The slanted lines of the Bulls Bears Signal indicator will show the direction of the trend and the side to open a trade with the least risk. So, if the price is above the trend line, a bullish trend prevails in the market (signals for Call options). When the price falls below the trend line, a bearish trend dominates the market (signals for Put options).
Use these rules to buy a Call option:
- The price is above the sloping line;
- Signals from the Spider Indicator 1 and Spider Indicator 2 appeared on the same candle.
The following rules are recommended for purchasing a Put option:
- The price is below the inclined line.
- Signals from the Spider Indicator 1 and Spider Indicator 2 appeared on the same candle.
A transaction is opened exclusively in the direction of the main price movement - the trend. Without a clear direction of the trend line, trades should not be opened. This is the most important rule of a trading strategy that cannot be broken.
Trades opened against the trend will most often be unprofitable, since they are characterized by a high degree of risk, where the number of unprofitable transactions far exceeds the number of profitable ones. The system recommends sloping trend lines to determine the trend, but in addition, you can read the following articles and see the presence of a trend on the chart without indicators:
- What is a trend?
- Trend phases .
- What is flat?
Signals based on the Spider Strategy for binary options
On each chart, regardless of the currency pair and timeframe , we are looking for confirmed signals from two indicators on one candle. Trades are opened only in the direction of the sloping trend line. Expiration (time of concluding a contract) should not exceed 1 minute.
An excellent addition to this strategy would be horizontal support and resistance levels . In the chart below you can see the confirmation signal after the bounce from the support level. The price broke through the resistance level, then returned back and bounced off this level, that is, the level changed from resistance to support. If you see such a situation on the chart, this is one of the best moments that the market can give you. Use this to buy a Call option and you will most likely make a profit.
Determining horizontal levels on a chart on your own can be quite difficult, especially if you have little understanding of technical analysis . In this case, you can use indicators of support and resistance levels , which will do this work for you.
Conclusion
The Spider Strategy is one of the few systems that allow you to start trading binary options today. But do not forget that only the market gives a trader profit and without a clear understanding of whether the strategy is currently working in specific market conditions, you will most likely lose your deposit . Study technical and fundamental analysis , and also work on improving your practical market reading skills. And most importantly, always follow the principles of money management and risk management .
Also, do not forget that there are a large number of “black brokers” who engage in fraud and do not withdraw the trader’s earnings. That is why we recommend choosing only proven binary options brokers .
Download Spider Strategy for free
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See also:
Technical analysis in binary options trading
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