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Introduction to Binary Options Trading
Binary options are a straightforward trading style where traders predict whether the market will go up or down within a specified period. With OlympTrade, a fixed 85% profit percentage awaits successful predictions across various market assets, including Forex, Indices, Stocks, and Cryptocurrency OTC Forex. Moreover, OlympTrade offers synthetic Indices for weekend trading.
Chart Setup for Precision Trading
To enhance trading precision, select the EUR/USD OTC market minute chart on OlympTrade, and choose the Japanese Candlestick Chart for a better view of market movements.
Indicators for Informed Decision-Making
Take advantage of technical analysis tools by adding the default Ichimoku Cloud Indicator and RSI Oscillator from the Technical Analysis section
Effective Trading Strategy
For an ‘UP’ trade, wait for the candlestick to close above the bullish cloud, with the Tenkan and Kijun lines forming a new higher high. Make sure to notice RSI near or below 20, indicating an oversold condition. Conversely, for a ‘DOWN’ trade, look for the candlestick to close below the bearish cloud and the Tenkan and Kijun lines, creating a new lower low. Additionally, note that RSI is near or above 80, signaling an overbought condition.
Patterns to Watch and Trade Duration
Exercise caution with Symmetrical Triangle Figures, as they indicate indecision. Opt for Ascending and Descending Triangles and other reliable patterns like head and shoulder patterns. Trade durations can vary between 5 to 10 minutes based on market volatility.
Money Management Principles
Maintain a disciplined approach to money management. Avoid over-trading and adhere to a strict strategy. Winning three out of five trades with OlympTrade’s 85% return can still yield profits.
Trade Example Illustration
In a provided example, a bearish Ichimoku cloud and an overbought RSI situation indicated a potential downward market movement. By waiting for favorable conditions, entering the trade strategically, and exercising patience, the trade resulted in a profitable outcome.
Conclusion and Further Resources
Binary options trading with OlympTrade, employing the Ichimoku and RSI strategy, demands a thoughtful and strategic approach. Set alerts for specific trade signals, be mindful of market conditions, and always prioritize money management for sustained success.
Explore our Price Action series on YouTube for in-depth analysis insights into redefining your trading skills.