Technical Strategy for Options “Directing”

Published:2 August 2017 Updated:4 January 2024

To solve the basic problem of a profitable binary tradingwhich consists in a steadily correct determination of market trends, we offer a system of technical analysis “Directing”. This method of generation trading signals is a universal forecasting tool for trading assets and allows getting up to 87% effective contracts in trading on the options market. In addition, the system is based on standard automatic indicators, which significantly expands opportunities for traders in terms of its use on professional trading terminals binary brokers.

 

Trade system “Directing” – technical requirements

To get the best possible trading results for the strategy, you will need a terminal where traders will be offered the following list of technical services and financial conditions:

  • Standard set of technical analysis indicators.
  • Bets with expiry periods 5 minutes.
  • Contracts with a high level of payments.
  • Work schedule with time period setting function.
  • Minimum financial requirements to the initial capital of the investor and the cost of trading bets.

As the best option, we recommend using the PocketOption brokerage service. PocketOption Broker on its specialized terminal provides the following trading conditions and technical tools for the strategy:

  • Professional set of indicators.
  • Options expiration time 60 seconds – 4 hours.
  • Bets with a payout level of up to 90%.
  • A functional set of technical settings of the trading chart.
  • The ability to trade with a capital of 50 USD and the value of trading positions from 1 USD.

 

Technical tools of the trading system

So, in order to use strategies to get effective predictions and signals for trading it is necessary to make the following adjustment of the working chart:

  • Set the timeframe to 15 seconds.
  • Apply these means of analysis to the quotes:
    1. RSI indicator 20, mark the levels 30 and 70 as extremes of the market.
    2. Alligator Indicator – The configuration of the settings is standard.
    3. Two WMA indicators with technical periods of 75 and 125.

Thus we will form a template for the evaluation of trade quotes in the following format:

Technical Strategy for Options "Directing"

Using analysis tools of various types and a wide range of technical indicator settings, we get an opportunity to evaluate a wider set of market indicators and generate the most effective forecasts for trading.

 

Trading rules

To make an effective binary option DOWN, use the following set of signals:

  • On the RSI trend indicator, the line indicates the current downtrend.
  • On the trading chart alligator muvings indicator crossed down trend lines indicator WMA.
  • The WMA muwings themselves have crossed downward.

Trade system "Directing" - technical requirements

To make an effective UP binary option, use the following set of signals:

  • On the RSI trend indicator, the line indicates the current uptrend.
  • On the trading chart alligator muvings indicator crossed upward trend lines indicator WMA.
  • The WMA muwings themselves have crossed upwards.

Trading rules

 

Expiration

Long periods of technical indicators allow you to identify market trends on the trading chart with a time period of formation up to 10 minutes. To get a stable positive result of trading, use contracts with expiry time of 5 minutes in trading operations. In such trading mode signals and forecasts of the trading system “Directing” will be processed correctly and profitably.

Money Management

Trading risk management rules in this case have a standard set of restrictions – to work in the safest possible mode, use bets with the initial value, when trading on large trading capitals use options with a level of risk up to 5% of the amount of your funds.

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