What is Binary Options Tick Trade Rise / Fall?
A trader can bet if any selected market instrument will rise or fall in next 5 or 10 ticks. Tick trade mostly applicable with binary options volatility indexes. Below is an example how it works.
Binary Options Tick Trade Strategy With Simple Price Action:
We have tested this strategy 100 times & it has good strike rate if you applied properly. It does not require any indicators only the basic price actions i.e candlestick patterns & understanding of wave patterns. We will be mostly focusing on continuous & reversal candlestick patterns.
Trading Chart Setup:
- Time Frame used: 1 Minute chart.
- Instrument: All types of instrument. Only avoid slow market time.
- Trade Timing: You need to place trade exactly at the start of the minute bar. Do not make too much delay while placing the trade.
Chart Wave Patterns to Follow:
In order to get success, you need to follow basic chart wave patterns as followings.
1.Higher Highs & Higher Lows:
The market creates higher highs & higher lows only during an uptrend. Thus it is the best time for BUY or placing Rise trades (Call Options)
2.Lower Lows & Lower Highs:
The market creates lowers lows & lowers highs only during a downtrend. Thus it is the best time for SELL or placing Fall trades. (Put Options)
Tick Trade Trade Example:
- Trading Instrument: Volatility 10 Index
- Trading Duration: 5 Tick (Minimum tick size)
- Chart used: 1 Minute
- Indicator Used: None, Basic price action
In this example above, market formed a “Falling Three Method” Candlestick Pattern on a bearish trend. So enter sell or fall trade instantly without any delay, at the start of the next minute bar. The trade was a winner.
We can see that market in next 5 tick continuously fallen, thus making us a winner.
With such pattern, there was a 71% chance that trend will continue and it did. How we got such data?
We got it from Thomas N. Bulkowski Encyclopedia of Chart Patterns book. An excellent material for traders to learn about different chart patterns & their statistical success rate.
There are more other types of candlestick patterns are available which you can use to trade either reversal or for trend continuation.
Important Note:
Remember not just forming any candlestick pattern is alone important. You need to see weather those candlestick pattern forming in the right direction or not. Then only you can expect a good trade. For example in the above case, bearish continuation candlestick pattern formed in a bearish downtrend. That’s why it is valid.
Money Management:
In Binary.com you can place a bet with 0.50 cent, by selecting $1 at stake. It’s good to start low. Never risk too much. Risk only 3-5% of your total capital. Not more than that. You can check our other article about it (The real logic behind 2% trading risk)
Avoid Over Trading:
One common pitfall for binary tick trade is trader trades out of their limit. Excessive trades can cause your account get destroyed in 30 minutes. But if you follow certain rules, then you can grow your account in the long run.
- After 2 consecutive losses, stop trading, take a break.
- Do not trade same pair or instrument one after another. Have a diversity.
- Do not trade in slow market timing. If you do not follow it, you will get a good number of losses as the price will not move & stay in the same zone.
- Have a daily trade limit, for example, only 2-3 trades per day & follow it regularly.
