How to trade in Fibonacci binary options. The main principles of a trading strategy based on Fibonacci numbers

How to trade in Fibonacci binary options. The main principles of a trading strategy based on Fibonacci numbers
How to trade in Fibonacci binary options. The main principles of a trading strategy based on Fibonacci numbers

Fibonacci levels - accurate and proven technical trading tool for price corrections and support / resistance levels. They are successfully used both in the Forex market and on binary options.

 

Fibonacci correction levels are one of the most reliable technical tools for working with pricing corrections and zones of support / resistance levels. The accuracy of signals allows you to successfully apply them not only for forex, but also for binary options.

Apply markup on price schedule

Fibonacci tools are included in the basic set of technical indicators of all popular trading platforms, such as MetaTrader. Build Fibonacci levels only on the trend formed:

  • ascending market - We begin a line from a minimum and pull the grid to a local maximum or a strong price level, which has already occurred (or possible) a trend turn;
  • downward market - reverse construction: from a maximum to a local minimum;
  • fibo levels are equally operating on any time period and a trading instrument.

Terminal screen after building:

Standard levels

The trader can add their lines for a specific trading tool, but the next set of values \u200b\u200b(in%) is most common in trading strategies:

  • 23,6 - The first level on which the trend can go to short-term consolidation or a small correction, after which the main movement continues. Open transactions are not recommended on any tools and timeframes.
  • 38,2 - In this zone, there are almost always many options (open interest), which means that strong support / resistance is formed. You can open a medium or long-term option with expiration of 5-6 bars of the current timeframe.
  • 50,0 - The level on which the greatest chance of a trend reversal or deep correction with a long refund to the main direction. It is here that the largest amount of deferred orders of large players is placed, so the market changes the direction very quickly in this zone. It is better to open options per rollback, not a breakdown.
  • 61,8 - The most significant area in which players' transactions are closed, who do not withstand pressure, and the price continues further from the previous price movement. The second name - abbreviated target point (eng. Sor), and its breakdown confirms the new trend.
  • 76,4 − Here is the optimal zone for the installation of forex orders of Stoploss, which fix the maximum allowable loss. On a strong trend, correctional movements rarely continue to "deep" values, but if the level breaks and the price has fixed under it, you can open an option in the direction of 100% Fibonacci mesh.
  • 100 maximum trend rollback or total target point (eng OR). Transactions do not open.

Some strategies use even additional levels. 161,8% and 261.8%But the popularity among binary option traders they did not receive - in such cases there are too long options.

Automatic markup

Levels are calculated and built automatically using special indicators, such AUTO FIBO RETRACEMENT, where the initial point is the last price Max / min. The grid is rebuilt at the beginning of a new candle or when switching a timeframe. MetaTrader screen after installing the indicator:

Only the color and style of the mesh lines are configured, and the rectangular zone (according to the developer's plan) should indicate the most likely price movement. As practice shows, this function does not represent any real value, and it is better to disable it by installing FALSE in the ShowNeUnretracerZone field.

The indicator rather accurately "draws" levels, but only if there is a clearly pronounced trend - as in the example above. On an unstable or lateral market, it is better to mark on your own.

Trading strategy

You can use not only the "standard" Call / Put ("above / lower") for trading), but also the options for touch and range "closes inside / outside" and "remain / will be released". The trader is better to adhere to one strategy: open after breaking Fibo Lines or on rollbackfrom her. It is recommended that the second option is recommended - according to statistics, the correction of the trend is found much more often than a breakdown of such strong levels, as 61.8% or 76.4%. The main actions of large players, first of all, are aimed at the formation of false breakdowns: small players are "lured" by several candles slightly higher than the level and then squeeze the market with a rapid return to the initial positions.

Example of false breakdown:

The opening rules are simple and can be used even by newbies:

  • the most reliable points of entry into the market on line 38.2%, 50% and 61.8%;
  • signals necessarily confirm the trend indicators, for example, the intersection of moving medium or oscillators in the overbought / oversold zone.

Two transactions opened using Stoxhastic + Fibonacci:

Option

Option PUT.

The validity period of the option (expiration) is chosen from 4-5 candles of the working timeframe.

Some practical comments

  • When working with price levels on turbo options - categorical ban! For trade with expiration 30-60 seconds, there has been a group of strategies that do not use graphical analysis and Fibonacci tools.
  • As a rule, for analysis by Fibonacci levels, younger timeframes M1-M5 are used, and at the same time an increased sensitivity of the schedule is not taken into account to any price impulse and subsequent perverted lines. In such a situation, it is difficult to understand true rollback or false, so we work at the intervals from M15 and above.
  • It is necessary to consider the decline in profits in range options and optional options. Where there are significant correction levels known not only to traders, but also brokers, which usually sharply reduce the percentage of profits up to 50-70, if the option parameters or the current price are near the Fibonacci line. To compensate for inevitable losses, any optional strategy should generate at least 7 profitable transactions from 10 at the level of 85-95%. This can only be hoped for stable profits, otherwise go to Call / Put options.
  • Statistics show a large number of unsuccessful transactions with a post from 23.6%. As we have already spoken above, this level is the first, where there may be a short-term slowdown in the trend before continuing the movement. The market continues to be in a state of uncertainty, therefore, it is better to postpone with the entrance, especially beginners.
  • Be sure to check the lines built by the indicator - the automatic markup is not always correct, and the hand-made grid on the chart will be much more accurate.

Do not forget: Like any calculated models, fibonacci levels can only be part of a successful trading system, in which pulse indicators must be present - oscillators confirming the trading signal to open the transaction. The profitability of the signal directly depends on the accuracy of building and understanding the price behavior near the calculated levels.

"Fibonacci Day" is an indicator trading system that will be able to ensure a stable income from binary options trading. It is important that in the process of testing this tactics, all transactions were carried out exclusively on the GROSL platform, therefore, in order to avoid additional difficulties, it is better to apply this program.

The strategy directly consists of three indicators, each of which carries out technical analysis of quotes. In addition, the proposed tools will help generate exclusively profitable signals, while false tips will be leveled by special filters.

Line-weighted sliding or WMA is another modification of a fairly popular indicator. The essence of the instrument is that during the construction, the cost is endowed with conditional weight, as the result, the most close prices of bars have the most significant specific gravity in relation to the cost of previous bars.

If we speak more than an affordable language, then WMA is more sensitive to price fluctuations than SMA, since the specifics of its calculations practically does not take out obsolete quotes. Actually, the principles of the performance of the indicator figured out, now it is necessary to say a few words about its indicators.

Like all previous versions, this tool works in periods directly to work on the "Fibonacci Day" strategy, the trader should set the following settings: 8; 21; 55; 144; 233. As you understand, these parameters are not taken from the ceiling, opposite each period is a certain element of the known mathematical sequence of Fibonacci.

Fibo sequence uses extraordinary popularity on the financial market, since with the help of these numbers, you can make the most correct forecast regarding the subsequent vector of the value of the asset.

ATR is averaged true range. Surely all traders are familiar with this instrument of technical analysis. The developer of the indicator is Wells Wilder. Initially, ATR was used exclusively for successful work on commodity sites, but over time she showed himself from the best side and in other markets. As a result, today the indicator is in demand among binary traders.

ATR refers to the class of oscillators, therefore, focuses on the determination of market volatility. As for the calculations, the indicator analyzes the quotation according to the following principle:

  • The difference between the minimum and maximum cost indicators for a certain period of time is determined.
  • The difference in the cost of the past level of expiration and the current maximum price value is taken into account.
  • There is a difference between the current minimum value indicator and the price of the last expiration of the bar.

The indicator in the form of ordinary lines is directly represented, by default, the main indicator is set to 14 periods, actually we will not change the settings.

Of course, special attention should be paid to the interpretation of signals. In the event that the indicators of the indicator reaches extreme values, this aspect will signal the increased interest of all participants in the binary market, also such a phenomenon can signal a possible reversal of the trend or forming a new orientation.

In the event that the indicators of the indicator move to minimal points, it is notifying about weak moods. In this regard, the trader should prepare for calm trading in a small range.

Stochastic is another fairly well-known oscillator. As a rule, the tool is used to determine the ratio of existing quotes to the value range for a certain time period. We will also adapt to the Fibonacci system directly to the Fibonacci system:

  • The volume of windows - 55 points.
  • The size of smoothing% k - 8 points.
  • Smoothing% D - 13 points.


Basic settings of the Fibonacci Day trading system

  • Expiration period - from 1 to 5 minutes.
  • Temporary intervals - from 1 to 5 minutes.
  • The strategy is suitable for trading currency pairs.

Selling trading signals for entering the position

Signals come not as often as other systems, but are characterized by an unusually high level of passability. In general, it is possible to conditionally divide the information obtained into three types:


Fibonacci chain is a sequence in which each number is the sum of the previous two. Other relationships expressed in the coefficients of 23.6%, 38.2%, 50%, 61.8%, 100% were established between Fibonacci numbers.

For traders using binary options, fibonacci levels are indicators with which you can explore the amplitude of price oscillations.

The price is usually moving unevenly with regular rollbacks and coming on correction. With the help of a frequency mesh, it is possible to predict quite accurately than the correction will end whether the price schedule will continue to move towards the current trend or turn.

This forecast is based on the breakdown price schedule of key levels:

0.236 and 0.382 are the first levels of price correction;
0.50 - medium level;
0,618 - a deep level of rollback price, the breakdown of which indicates the possibility of turning the trend.

Installing Fibo Mesh

Open the currency pair schedule, install the timeframe and choose Fibo grid. The grid is stretched towards the movement of the main trend:

In the case of a descending trend, the grid is stretched towards the local minimum point to the local maximum;

With an uptrend trend, the grid is stretched from a local maximum to a local minimum.

Trade Rules

Fibonacci levels are powerful support and resistance lines, therefore trade in fibonacci binary options can be performed in two versions: on breakdown levels or on withdrawal from them. It should be borne in mind that the signal is considered, as reliable, only after the end of the formation of the candle at a certain level of Fibo.

If the candle broke through the Fibonacci level only by his shadow, then such a signal is false and does not take into account.

Determine the entry point.

So, if the price schedule breaks the levels of 0.382, 0.5 and 0.618, then in the near future the price will continue its movement if the price scores from these levels, then a reverse trend is formed with a probable movement to the next level.

We buy an option.

When choosing an option, you need to be guided by the Rule: If the price breaks the level of support, we buy PUT; If the price breaks through the resistance level, then we buy Call. The expiration period is chosen by the duration of two candles.

Consider an example of using fibonacci levels in binary options. Figure below shows a GBP / JPY pair schedule.

At this moment, the trader must wait for the breaking of the level of 0.382 (correction) or overcoming the zero mark (the price schedule updates the minimum). Both of these options can be very profitable for binary trading.

In the figure above, we see that the further price movement developed on the first scenario: the price schedule struck the level of 0.382 (resistance line), so at the end of the candle formation you need to buy Call.

We take into account the expiration period.

Traders working with the InstaForex broker - http://www.instaforex.com/ru/, usually does not arise difficulties with the expiration period, since this company has the minimum execution time of the transaction is 1 minutes, and trade in fibonacci binary options provides for the minimum deduction Positions 10 minutes. In individual brokers, the execution time of the contract can achieve half an hour, so there will be no 5-minute trading for trade, but 15-minute charts.

So, the position is closed. The figure shows that it is clear that the value of the asset did not simply increase, but another level of Fibonacci struck, but for binary trading it no longer makes sense, the main thing is that the market moved to the right direction.

Fibo strategy is applicable to almost all financial assets and timeframes. Experienced traders advise not to neglect long-term and not abuse short-term transactions. At long periods, fibonacci levels help to exclude a variety of interference, and in short periods, signals may be erroneous due to high volatility.

In accordance with the statistics of the fibonacci signals for binary options, the signals are carried out in 3 cases out of 4, showing 75% of profitable inputs. Given the profitability of options in 200-250%, it is possible to make a very positive conclusion about the profitability of the entire trading system.

Welcome to you, dear readers. Today we will consider the Fibonacci Strategy for Trade on Binary Options. It is known that the Fibo bands and the ratio of this tool makes it possible to receive income on fishing a basic asset rollbacks. Tactics can be applicable on any financial assets you can find in the terminal of the brokerage company.

This unique system, which will be discussed in detail by us, allows you to earn decent money. It is known that after a trend movement, there is always a rollback, and behind it - the continuation of the current trend on the exchange asset.

You should understand that trade on this instrument can help you stabilize your trading. If you enter into transactions using trading bots, work on Fibonacci system can bring more stable results, this can be attributed to risk diversification.

Description of the system

This unique system makes it possible to benefit even from small price fluctuations, although it was originally designed for trading shares of companies on day charts. Trade should be carried out on charts with a time interval H1 and the expiration time of about 6-12 hours. It depends on the activity of the graph of the base asset. You yourself can check these expirations on a demonstration account.

Fibonacci tool for binary options allows you to earn money on currencies, promotions, stock indexes and other tools. You may not know what freak ratios need to look.

So, from levels of 38.2% and 50% occur rebounds with a continuation of the growth of the value of the exchange asset with a strong and average trend, respectively. If the trend is rather weak, the rebound may occur at the mark at the mark of 61.8%. This ratio is often used today.

Technical instruments: Fibonacci bands.

Trading tools: currencies, stocks, stock indexes, raw materials assets, metals and other tools that are in the platform of your brokerage company.

Trade Rules

Purchase Call Transaction

Call digital options as soon as you see a rebound from one of the Fibo levels - 38.2%, 50.0%, 61.8%. As a rule, it is necessary to place the Fibo grid along the total trend, from its minimum point and to the maximum. The transaction must be enclosed after apparent rebound. Do not trade if you still do not understand, the price bounced off or not.

Purchase Transaction Put.

In the reverse situation, you need to purchase a PUT deal to remove the profit from the collapse of the exchange asset. As practice shows, you need to make a fib-markup from the point of the maximum trend to the point of the minimum if a downward trend is observed, and we always trade along the trend. When bounces from levels 38.2%, 50.0%, 61.8%, it is necessary to conclude an investment operation to obtain quite quick profits.

Watch what is happening on the market, because there are situations to get a series of unprofitable transactions. At least once every 3-6 hours, see that strong news does not significantly affect your position. If the price clearly goes against you, just close the deal ahead of schedule, taking back to your account 10-25% of the amount of the bet.

Management of risks

Professionals believe that if the trend is present, then if the loss is obtained by 38.2%, then 50%, you can already double the bidSince the likelihood of rebound is significantly increased. If another minus is received, you need to buy another contract towards the trend to 61.8%.

Experienced speculators are trying to reduce the interest rate. Newbies can make account the amount equal to 10 minimum rates, which is also sufficient for effective trading. Experienced players prefer to invest from 20 to 50 minimum contracts to their account to be able to extract profits more stable.

results

Our stock speculator tested this system and found out that it is really effective when working on any financial instruments. In order for you to understand, pay attention to the assets that are the highest. More than 80% of orders are closed in plus, so you can not worry about several losses in a row, which can also appear on any financial market.

The ratio of 4: 1 allows to extract profits as efficiently as possible, with a high level of stability of the results. Try making money in other time intervals, with other expirations, because the market is changeable and you can get much more profit if you use it in your trading.

conclusions

This system will be useful, because it allows you to earn good funds, unlike Flat tactics, which are fully on the Internet. On our information portal you can find many technical tools and methods for analyzing quotes on the chart.

Successful to you trade, extract profits at the maximum!

The success of the trader who is engaged in binary options is the right definition of the market state and further price movement. Most of the beginners use a variety of TEXANALIA instruments, which make it possible to compile a competent and profitable strategy for trade in binary type contracts. One of the truly working tools is a strategy based on Fibonacci levels. What is the essence of this strategy?

Fibonacci levels help the trader in identifying local support and resistances, and also make it possible to understand where the asset price will make a turn or short-term correction. Trading, built at levels, brings good profits.

The concept of "Fibonacci numbers." Their main use in trading

Let's briefly understand what Fibonacci numbers are. Leonardo Fibonacci is the greatest mathematician of the 18th century (Italy) and the creator of a certain sequence of numbers: 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144. The numbers that contain this series have a certain frequency and pattern appearance. Each subsequent value is the result of the addition of the previous two. L. Fibonacci also recorded and other bonds between the numbers of a number, which are expressed by the calculated coefficients (or rather levels): 23.6%, 38.2%, 50%, 61.8 and 100%. These are the main five levels used by players in the market for earnings on binary options. Professionals who use trading options as a key income article use fibonacci levels to track exchange oscillations at a particular time interval.

The numbers (levels) of Fibonacci are a tool for carrying out a wave analysis of the trend of binary options. The Fibonacci technique makes it easy to study the amplitude of the price changes asset. Traders apply this strategy as an indicator to predict a market trend.

Fibonacci strategy is rightly recognized as useful because thanks to her you can find out:

  • the value of the levels of the price correction, as well as the side in which the price will go;
  • "Strong" levels of support and resistance.

Professional trading provides for trading operations in order to earn money on binary options, applying corrections (rollbacks). Fibonacci indicator is simply irreplaceable.

How to benefit from kickbacks?

Most traders do not know what to do when rollbacks occur on the market. They stop trading. However, the kickbacks are an integral part of the trading. The frequency of their appearance is so great that it is simply stupid not to use the chances of receiving profit. Working on rollbacks, the trader must navigate the situation in time. Only thus market price fluctuations for binary options will bring the result. Without Fibonacci levels, it's just not to do. Fibonacci trade trade implies tracking price change expressed as a percentage.

Working with binary options based on level indicator, you need to take into account a number of key moments, allowing you to more efficiently use this tool:

  • it is recommended to choose "serious" and more profitable options, such as those based on the currency of EUR / USD, USD / RUB and others;
  • timeframe installation should be carried out with regard to the display of these market trends. If we are talking about rollback, then the trader should not doubt, - roll back this or just hesitation. Changing the timeframe affects the sensitivity of the schedule. The most appropriate time interval for the fibonacci syndicator is a daily chart;
  • the definition of reference points makes it possible to open transactions: if the price is within the level of the level of 23.6%, then you can easily put the options "Call" options. Rollback is no more than 38.2% perceived quite standard. In this case, the exchange rate cost is likely to rise. However, if the indicators crossed the mark of 61.8% and are sent down, then you can not think about opening the transaction "Put".

The main principles of a trading strategy based on Fibonacci numbers

Fibonacci levels are repeated observations of the return movements of the course, which occur within the same price levels. The accuracy of the forecast prepared on the basis of Fibonacci techniques may even envy the most top-end trading strategies. The inverse price movement in accordance with the levels occurs with a frequency of 61.8%. If at one out of five levels the price begins to move in the opposite direction, then there is a high probability that it is the level of support / resistance.

It is important to remember that the trend is the best friend of the market player. In fact, based on its quotation changes, decisions are made regarding trade operations. In the market of binary options, the discovery of transactions contributes to the so-called corrections for support levels or resistances.

Fibonacci level indicator paired with a graph of the main trend form a kind of grid that allows you to determine the point of the start of the trend line. The trader should always be alert and track minimum three price regions: 38.2%, 50%, 61.8%. It is within these areas that trend correction occur, which determine its further direction (trend). Consequently, a trader, making a bet on the binary options of this or that type, must be confident in the correctness of the prediction. If there is a desire, then you can observe in the level of 78.6%.

Fibonacci trade trade has one difficult moment, which is associated with the definition of "force" and the sustainability of price levels. It cannot be rejected here simply to the numbers, and it is necessary to track the factors affecting the price reversals and the rollbacks of individual financial instruments.

Building levels and practices for trade operations

In order to build Fibonacci levels, you need to go to a lively graph of binary options and select a tool called "FIB RETRACEMENT". Next, it remains to expect the appearance of a well-pronounced trend. After its turn and offset by 20-25% of the previous trend, it should be carried out (from top to bottom or bottom up) line between the extreme points of the last price movement. Thus, the "Fibonacci levels" indicator automatically appears on the chart. Now it remains only to analyze the levels of support and resistance, opening transactions on breakdowns or reversals.

Consider a few examples:

1. Trade in Fibonacci levels, if the trend is directed down with ascending rollback (see Fig. 1).

Fig. 1. Application Fibonacci strategy: downward trend with rising kickbacks

To start work, you should conduct a line connecting the upper maximum with a lower minimum point. Further, the chart establishes "Stochastic" and there is a dullness at Fibonacci level. This level is the maximum rollback value. Soon the trend returns to the previous direction. The price, which is located under the maximum rollback, can be selected as a level for a "touch-option".

2. The trend line is directed up with descending rollbacks (see Fig. 2).


Fig. 2. Ascending trend with descending rollbacks. Work on Fibonacci levels

To begin with, it is necessary to carry out a line connecting the lower and top points on the chart. After that, to build an oscillator and determine the level of oversold (in accordance with Fibonacci strategy). This point is the maximum value of the rolling back of the price level of the ascending trend. Most likely, in this case, the price will continue its former movement.

Conclusion

Fibonacci strategy makes it possible to earn in rollbacks (). In the binary options market, this phenomenon is not uncommon. The indicator allows not easy to analyze the price turn, but also to know its relative strength.