## MACD & Bollinger Bands Binary Trading Strategy

This strategy is an expansion of the MACD trading strategy. While the MACD is used for indentifying the prevailing trend, this strategy adds the Bollinger bands as an additional indicator for a trade trigger in order to minimize the likelihood of a false signal. Although the MACD indicator is reasonably reliable, it is not without its shortcomings. One of its shortcomings is the fact that a wild price swing can result in prices varying significantly for the market trend. Another shortcoming of the MACD is because the indicator is a lagging indicator. And because of this lag, the MACD is…

## Interpreting the MACD Indicator for Binary Trading

While the concept of binary options trading is a simple matter, to get ahead, a trader must be able to formulate an effective trading strategy on his own. In this article, we will take an in-depth look at how we can use the Moving Average Convergence Divergence (MACD) technical indicator to further our trading advantage when trading Call/Put binaries. Analysts generally use the MACD indicator to help them understand the magnitude of the momentum in the market. The MACD uses the relationship between a shorter moving average of prices and a longer moving average of prices to discern the momentum…

## The Gamma Scalping Strategy for Expert Binary Traders

The binary options gamma scalping strategy is an advanced trading strategy for experienced binary options traders. Only traders who are extremely knowledgeable and well capitalized should ever consider using the gamma scalping strategy. Delta & Gamma Gamma is a Greek term used to describe the rate of change of a financial option’s delta as compared to the price of the option’s underlying asset. Delta or “hedge ratio” in financial trading refers to the ratio of change of an underlying asset price as compared to the option’s price. For example of an option has delta of 0.75, this mean for every…

## The Pivot Bear Trading Strategy

Pivot Point Bear strategy is an excellent strategy not only for risk control when trading binary options but also can be used as an indicator or monitoring tool. Traders are advised to familiarize themselves with this strategy so they it will provide them with a powerful tool in their arsenal of trading strategies What Are Pivot Points? By definition, pivot points are a type of technical indicator that is used by technical analysts to verify the primary market trend over a range of different time frames. It is essentially a point derived from the average of the previous day’s…

## Using Channel Identification in Binary Options Strategy

Traders dream about stumbling across an asset trading in a channel. It has all the advantages as trading with the trend, but also provides a bunch of signals which make trading really profitable. Channels are often hard to identify and carry a risk of breaking unexpectedly, which is why they often aren’t discussed in many binary option strategies. But when they do appear, they can give the opportunity for substantial profit in a short time, which makes them worthwhile to discuss. A channel is basically when the market get’s confined between two trendlines. There are several reasons for why the…

## Fibonacci in Binary Options Trading

Fibonacci and Binary Options is for the advanced trader The Fibonacci retracement tool is one of the lesser used technical indicators in market analysis, but still forms one of the best and most accurate strategies to accurately predict where prices are heading to. Retracements are a regular part of trading. They happen all the time which means a trader needs to know how to use retracements to their advantage. This is where the Fibonacci retracement tool comes into play. The tool plots 5 horizontal lines on the charts which relate to 5 possible areas in which the price might retrace….

## Straddle Strategy

Straddle is for advanced traders The straddle is a trading strategy which involves the simultaneous use of put and call options with the same strike price and expiration date. The straddle is a good trading strategy to adopt if you as an investor believe that the price of an underlying asset will fluctuate significantly but are unsure as to the direction of the fluctuation. For the straddle to be a profitable strategy, several conditions must be fulfilled first: The price fluctuations must occur within a short term period. The price swings must be significantly large. There is an increase…

## Protective Put Strategy

The Protective Put Strategy is for Advanced traders Now let’s learn how to use the protective put strategy. For those who are new to options, a “Put” option is a contract which gives the holder of the option the right to sell an underlying asset for a specific price within a specific time frame. It however does not impose any obligation on the holder of the option if he decided not to exercise the right. Unlike a put buying strategy where the investor is selling short in the market, a protective put strategy is a strategy used by investors to…

## Covered Call Strategy

Covered Call Strategy is for the Advanced Trader One of the ways which you can reduce your trading risk is to employ the use of the covered call strategy. The strategy is specifically used is a situation when you are holding a long market position in an asset. In order to reduce the risk in this situation, you can write (sell) a call option on that asset. The idea of this is to generate additional income (option’s premium) from the asset traded by selling the option later. An incidental benefit of this strategy is that you also get to minimize…