Binary Options Trading Based On Volumes

Binary Options Trading Based On Volumes! It is very important when placing a binary option puts based on the volume that you don’t just look at the volume traded through your broker only; you must look at the volume traded over the entire asset market to establish a good opinion based on volume. Once you have established that you have the volume trend of the asset market-wide then next you should do the following: Find an existing hourly chart of the binary option you wish to trade and find the last biggest candles in both the bear and bull markets.

Adapting the Expiration Date of an Option

It is worth mentioning though that long-term positions should be used in case one is trading the COT reports as there is no straight line as to how the market will react and when. There is a strong tendency that the market will stay in overbought and oversold territory more than traders are staying solvent and that says much about the trading environment we’re facing.

Can volumes be traded using the classical Metatrader trading platform?

Yes, they can, and quite successfully. With binary options, considering that kind of trading is a fixed percentage result and this makes missing a trade or two not that important. What’s important is for the account to grow in time as it is not possible to grow in a straight line all the time. What a trader should do is to take the volume indicator and plot it under a chart, ideally under the hourly chart. By right-clicking on the indicator, levels can be edited and one or two lines can be placed at the medium-high of the spiking candles.

Candlesticks With Volumes

Whenever a candle is breaking those levels, it should be considered a signal or a striking price when a trade should be placed. If the volume candle is green, it means it is a bullish one, and buys contracts/ CALL options are favored. On the other hand, if the volume candle is red, it means it is a bearish one, and SELL contracts/PUT options are favored. In both situations, don’t be afraid to use bigger expiration dates like the end of the day or even the end of week or month in order to avoid fake signals like the ones we referred to a bit earlier.

With binary options, end of month expiration dates should be always favored when the option is being taken in the second half of the month. Binary Options Trading Based On Volumes

By trading with the system mentioned above, the trader is facing a pretty straight-forward situation: it avoids low volumes by setting the standard with the higher level candles and avoids fake signals by choosing a bigger expiration date than normal.

We would not recommend this strategy on bigger time frames than an hourly chart as those volumes will indicate more fake moves and signals and the expiration dates are rarely more than the end of the month or one month.

Binary Options Trading Based On Volumes