What is Binary Options Trading?
Binary options trading is one of the online trading which involves the traders bet on any assets for certain duration of time. If the trader wins that binary trading during that time duration, traders will get 85% to 95% profit. If the trader fails in that time duration, he will lose the whole amount.
As the Binary options trading is highly lucrative, lot of traders and investors fall in this trap without knowing its strategies.
Today we are going to teach you to “EUR/USD” binary options trading strategy.
Why should we use the EUR/USD to trade binary options?
In the Binary options trading you will be trading on familiar assets which is traded normally in the market. In this article, we are going to study the simple strategy to win EUR/USD binary options trading. Many binary options guru will teach you with some autotrading tool which will end up in signing up with a binary option broker.!!
Be careful with the guys who teach you using auto-trading tools. We are not opposing the auto-trading strategies, but we are just asking you to be careful.
List of Indicators we are going to use in this strategy:
-The Momentum indicator to find the strength of the EUR/USD signal
-Charting and Technical Indicators
-Trading EUR/USD using the Parabolic SAR Indicator
-Bearish Market Signs
-Bullish Market Signs
How to apply Parabolic SAR and MACD Indicator in trading EUR/USD Binary options?
In this Binary trading Strategy we will use Charting and Technical Indicators. We will explain how to use the Parabolic SAR indicator and MACD to buy and sell EUR/USD.
When to Buy or Sell EUR/USD?
When Parabolic SAR gives a green signal to buy, wait for the MACD signal. The MACD will verify that signal by crossing the zero line. This is the right time to buy the option. Similarly, when Parabolic SAR gives a signal to sell, wait for the MACD to cross the zero line. If MACD didn’t crosses, then there is no buy or sell trading at this time.
Does this Binary trading strategy work well?
My answer is : This strategy works well.
No.1 reason is that this strategy calculated using trusted and reputable signals and indicators.
No.2 reason is that this strategy depends upon single strategy, it focused on two indicators.
How to use Bullish Market Signs
There are two types of market signs, one is bullish and another one is bearish. If you want to find EUR/USD options currency pair tends to go bullish, look for two scenarios.
Look at the parabolic SAR indicator shown in the figure. EUR/USD is trading above the parabolic SAR indicator.
Check out the graph below, MACD indicator just crosses from being negative to positive. i.e: crossing the ZERO line. Now you have the clear signal to go bullish.
How to use Bearish Market Signs and win EUR/USD binary trading
Now it’s time to find whether the market tend to go bearish or not. For this, you are going to reverse the strategy we used in the above method. The EUR/USD binary options will be trading below the Parabolic SAR indicator. At the same time, MACD indicator will cross the zero line, but from positive to negative.
If you have any ideas about trading binary options EUR/USD, please comment below. We’ll add them in the article later.