Strategy for trading binary options "Day-Hour"

The binary options trading strategy "Day-Hour" is based on the analysis of two timeframes (daily and 4-hour), and the trade is conducted only by the trend. It is possible to use the analysis of hourly H1 and 4-hour H4 timeframes for trading, but since this trading strategy was originally created to work on the D1 and H4, it is still recommended not to chase after big profits, and work on these time intervals. You can use for trading Any binary options with any currency pair.

The essence of the strategy is to use a simple moving average SMA to determine the direction of the trend on the daily chart. And with the help of a simple moving average and indicators to determine trading signals, which can be used to enter the market to buy or sell on the 4-hour chart.

Tools for binary options trading strategy

• Simple moving average SMA with a period of 3, set on the daily and 4hour charts
• MACD indicator with values (15, 120,5) set on the 4-hour chart
• RSI indicator with a value of 9. Also set to the 4-hour chart

Analysis by means of the strategy "Day - hour" and trade

Initially, on the daily chart we find the closing price of the daily candle relative to the simple moving average SMA (3). Important point: if yesterday's candle closed above the moving average, then on the 4-hour chart we will only look for Call buy signals. If yesterday's candle on the daily chart closed below the moving average, then on the 4-hour chart we will only look for trading Put sell signals. It can also be difficult to determine where the candle closed, then the best option would be to skip that day and wait for a well-defined signal.

After determining which trades we are going to look for to sell or to buy. We go to the 4-hour chart and look at the indicators along with the chart:

• see if a candle closed above or below the moving average
• RSI indicator direction - down or up
• signal from the MACD indicator - crossing moving averages, that is, the red line crosses the level of 0.00 downwards or vice versa

Example:

Below is yesterday's candle, which closed below the moving average on the daily chart. So today on the 4-hour chart, looking for sales only.

The first signal to sell came from the MACD indicator, when the main signal line was crossed (lower dotted line on the chart). But at the same time, we see that the candle on the chart at this moment closed above the average moving line. Therefore, we are waiting for confirmation when the price falls below the moving average. As a third confirmation, we look at the RSI indicator, which, should be pointing in the direction of price movement, in this case to the bottom. Only after you have a clear signal, that is all three proofsYou can safely buy an option, in our case "Put".