Today there are many trading methodologies that can be categorized not only by type but also by timeframes. Among beginners, the most popular are undoubtedly the methods for binary options with a 5-minute expiration, followed by turbo options (with expiration in 60 seconds or less).
It's worth noting immediately that 5-minute binary options strategies have more advantages compared to shorter time intervals. This is due to increased profitability with a lower probability of loss. Making a price movement prediction for 60 seconds is much more difficult than for 5 minutes.
Let's examine the TOP 5 best strategies for binary options.
Contents:
- General characteristics of TOP systems for 5-minute binary options
- Flash-FX Scalper System
- M5 Scalping Method
- 5M Binary Options v6.1 Method
- Binary System Tactics
- Magnetic Tactics
- Tips for beginners using strategies
- Conclusion
General Characteristics of TOP Systems for 5-Minute Binary Options
Today we'll introduce you to binary options strategies that are suitable for MetaTrader 4 terminal and use only classic option types: Call and Put.
For 5-minute binary options strategies, any trading instruments are suitable: currency pairs, stocks, cryptocurrencies, commodities, and indices.
To minimize risk, it's best to choose the most volatile and active trading time: from 7:00 to 19:00 Kyiv time.
And note that it's better to trade through verified brokers, among which we can highlight Quotex, Pocket Option, and Deriv.
Since these strategies require the MetaTrader 4 terminal, below you'll find a video with detailed instructions for installing indicators for this platform.
Flash-FX Scalper System
The Flash-FX Scalper strategy is a paid signal strategy for binary options with elements of scalping and trend trading. It consists of several signal indicators (arrows and large dots) and an information panel that helps determine when an asset's price is in a trend, and also provides signals in the form of multicolored squares.
The rules for the 5-minute binary strategy for option contracts using the Flash-FX Scalper system are quite simple: Call contracts are purchased when:
- The trading instrument code on the panel is green.
- The square under the selected timeframe is also green.
- A green arrow appears on the chart.
- The price is above the gray large dots.
Put is purchased when:
- The trading instrument code on the panel is white.
- The square under the selected timeframe is also white.
- A white arrow appears on the chart.
- The price is below the gray large dots.
Download Flash FX Scalper
M5 Scalping Method
The M5 Scalping strategy consists of automatically constructed levels, two filter indicators located in the "basement," and precise signals in the form of arrows. Also, in this method, for the trader's convenience, the current trading day is displayed on a gray background, and in the upper left corner, there is a small information panel with metrics of the traded asset.
Rules for entering a Call purchase trade using the M5 Scalping method:
- A white up arrow appears on the chart.
- The price must be near a level, and preferably above it.
- The "basement" filter indicators turn blue.
Rules for entering a Put purchase trade:
- A white down arrow appears on the chart.
- The price must be near a level, and preferably below it.
- The "basement" filter indicators turn red.
Download M5 Scalping
5M Binary Options v6.1 Method
This strategy is the simplest in our TOP list, as it includes only two indicators: a signal one (arrows) and an oscillator as a filter. The "basement" oscillator is built on Moving Averages and the Stochastic Oscillator indicator.
Trading rules for the 5M Binary Options v6.1 method are as simple as the strategy itself. Call is purchased when:
- A light blue arrow appears
- The oscillator dots in the "basement" are blue
Put is purchased when:
- A yellow arrow appears
- The oscillator dots in the "basement" are red
Download 5M Binary Options v6.1
Binary System Tactics
This methodology includes fifteen indicators, some of them are purely informational, while only six indicators are used for generating trading signals. The strategy itself is a variation of a channel system, where trading is conducted along an automatically constructed channel. This 5-minute options tactic also employs local support and resistance levels, as well as global supply and demand levels.
5-minute Call options are purchased when:
- An up arrow appears
- The price is at the lower channel boundary or above the middle channel boundary
- Wait for a local level to appear (blue dots)
- A green dot appears
- Stoch Bars and Stoch Histogram indicators turn green
- The %R indicator is above the "Sell Zone"
5-minute Put options are purchased when:
- A down arrow appears
- The price is at the upper channel boundary or below the middle channel boundary
- Wait for a local level to appear (red dots)
- A red dot appears
- Stoch Bars and Stoch Histogram indicators turn red
- The %R indicator should be below the "Buy Zone"
Download Binary System
Magnetic Tactics
This algorithm is based on the ZigZag indicator, which serves as a trend indicator and trading signals generator. In addition to this, this tactic has other indicators and filters: oscillators, histograms, and a signal panel from different timeframes.
To purchase Call options for 5 minutes using this tactic, you need:
- ZigZag shows an up arrow
- The price is above green and blue dots
- The M5 Forex Supreme Filter indicator is blue
- M1 and M5 timeframes on the info panel in the upper left corner are blue
- There are no yellow dots on RSI TC NEW indicating a flat
- RSI TC NEW values are above "50" and below "70"
To purchase Put using this method, you need:
- ZigZag shows a down arrow
- The price is below green and blue dots
- The M5 Forex Supreme Filter indicator is purple
- M1 and M5 timeframes on the info panel in the upper left corner are purple
- There are no yellow dots on RSI TC NEW indicating a flat
- RSI TC NEW values are above "30" and below "50"
Download Magnetic
Tips for Beginners Using Strategies
Any options strategy can be made more effective by following certain rules. The most important of these is trend trading. If you want to learn how to quickly identify the main trend in the market, we recommend studying this collection of articles on the topic:
- How does trend work in markets?
- Identifying and using bearish and bullish trends
- Market phase changes
- How to identify flat in the market?
Understanding the likely direction of price movement can significantly increase your chances of successfully closing a trade, which is especially important for binary options, where profits are less than losses and mathematical expectation is always against the trader.
Additionally, always try to use technical analysis. In our experience, the ability to build channels and identify important price levels, combined with knowledge of basic graphical analysis patterns, will certainly positively affect your trading results. Besides this, it's necessary to use Price Action and candlesticks, which will help strengthen the trading signals of any system.
Also, don't forget about risk management and capital management rules, as these are what improve your strategy and allow you to apply it on any timeframe.
Conclusion
All of the above TOP-5 strategies for 5-minute binary options are nothing more than a subjective selection, and before starting to trade with them, it's recommended to test them on a demo account. Only after this should you start trading with small amounts to ensure proper understanding of the rules of a specific binary strategy. It's also very important to trade through verified brokers, a list of which you can find on our website in the binary options brokers rating.
If you have questions about how one of the strategies or indicators works, write about it in the comments to this article, and also subscribe to our YouTube channel WinOptionCrypto, where we will definitely address all your questions in video format.
See also:
Official binary options brokers in Russia
Trading psychology - what a beginner needs to know
How to profit by trading on clean charts
Live chart for binary options online
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