Iron levels for binary options are a new way of making a profit. Strategy "Iron levels

Iron levels for binary options are a new way of making a profit. Strategy "Iron levels

The emergence of one or another price dynamics can be explained in a variety of ways. For example using zones of demand and supply in forex, which are able to give the price a very strong impulse, which leads to its significant rise or fall. It is about such zones, the methods of their identification and methods of application in trade that will be discussed in this article.

Reasons for the emergence of supply and demand zones

Most often, the price movement is caused by an imbalance between the volumes of an asset offered by sellers and demanded buyers. If buyers want to buy more than sellers want to sell (demand exceeds supply), then the price starts to rise. And if sellers want to sell more, and buyers do not want to buy so much (supply exceeds demand), then the price begins to fall.

With the imbalance described above, the price continues to move as long as it exists. But at the moment of equalization of supply and demand, the intensity of price dynamics falls rapidly (if it is not affected by other market factors).

Thus, the trader faces the following tasks:

  • determine the zones in which demand or supply is predominant (in these zones, positions are opened);
  • define zones in which supply and demand become equivalent (profit is fixed in these zones).

Identification of supply and demand zones on price charts

The method of finding these zones is similar to finding support and resistance levels. That is, it is necessary to fix global and local extrema:

  • the maximum levels will be located in the supply zones (ZP);
  • the levels of the minimums will correspond to the zones of demand (ZZ).

However, not all extremes formed by the price will correspond to the sought-for zones. The principle of filtering false extrema is as follows (Fig. 1):

  • the level of the true RFP determines the maximum, from which the price turned down very quickly;
  • the level of the true ZS determines the minimum, from which the price turned up very quickly.

Extremes that do not fit the definition of ЗС and ЗП are the levels of support and resistance. At the same time, in contrast to these levels, the strength of the ZS and ZP is inversely related to the amount of its testing by the price. This is due to the consistent decrease in the excess number of sellers and buyers (supply and demand, respectively) in the formed zones. Therefore, most often these zones are tested no more than 2 times.

You should also take into account the time spent by the price in the AP and RFP. The ratio between buyers and sellers in it is inversely proportional to this time.

There are also similarities between the levels of support and resistance and ZS and ZP. It consists in the fact that when the price overcomes the ZZ down or ZP up, they often become ZP and ZP, respectively.

Trading strategy for zones of supply and demand

After analyzing all the above-described features of price dynamics near and within the supply and demand zones, you can draw up a profitable trading strategy described below.

First, you need to wait for the formation of a supply or demand zone and mark it on the chart. It should be borne in mind that each such zone has two boundaries - lower and upper, and, therefore, a certain width.

Then you should wait for a secondary return of the price inside the identified zone (Fig. 2). After that, a pending order is placed:

  • for the demand zone - to buy at the upper border;
  • for the supply zone - for sale at the lower border;

and StopLoss:

  • for the demand zone - under the lower border;
  • for the supply zone - above the upper border.

Thus, the smaller the width of the identified zone, the lower the StopLoss and, therefore, the lower the risk.

TakeProfit is placed at a distance from the pending order 2 ÷ 3 times further than the set StopLoss. At the same time, you need to make sure that there are no strong key levels and zones on the way of price movement to Take Profit that can stop and reverse it. If they are, then you should not place pending orders.

Supply and demand zones indicator

The results of any trading strategy largely depend on the correct analysis of the market situation and the adoption of appropriate decisions. For trading on supply and demand zones, such an analysis consists in the correct marking of the boundaries of these same zones on the chart. The technical tool described below called Shved Supply and Demand (download ).

Its principle of operation is to automate the algorithm described above, based on identifying extrema and analyzing each of them for compliance with the identified zones. At the same time, mistakes that a person can make are excluded. On the price chart, SSD performance appears as horizontal bars starting from a minimum or maximum (Figure 3).

Each zone type is marked with a specific color. Additionally, the strength of each of them and the number of tests are indicated.

The trading strategy based on supply and demand zones built by the SSD indicator does not differ from the one described above. Immediately after it is displayed on the chart, the trader needs to place a pending order, Stop Loss and Take Profit according to the rules specified in the previous section.

Video

Quotations are the engine of progress in the asset market - they determine supply and demand. Strong demand gives strong growth, but active supply leads to a market decline. And until the quotes again reach the level of demand, supply will fall, after which a new wave of increased demand will begin. Thus, the quotes chart has been chasing from the bottom up and back for hundreds of years by the players of the stock exchanges. And if you learn to accurately determine the supply and demand zones, you can make good money on this. My trading system, built on the levels of supply and demand, has been bringing me good profits for more than six months, while increasing my deposit by about 3 times. Now I will tell you what her focus is.

My TS "Iron Levels"
To trade my TS, I use the MetaTrader4 technical analysis platform and the Binomo binary options broker. The platform itself can be downloaded from the Internet. And I chose this broker because it has a minimum trade size of 1USD, which suits me perfectly.

After installing MetaTrader4 on your computer, you need to install from this one archive the indicators and the TS template to the main platform folder, which you will find on your PC in the already known Program Files folder. However, a detailed description of the installation can also be found on the Internet.

When you have completely completed the installation, restart MT4 and select the "Iron Levels" template in it. After that, your quotes chart will be drawn in the following way:

Now you can see that the indicators in the form of red zones show us the levels of demand, and in the form of green zones - the levels of supply. The arrows that will appear during the movement are the places where the moving price crosses, which tells us about the appearance of an upward or downward trend.

How to recognize trading signals
First of all, you need to select a trading instrument, open its quotes chart and wait for a signal to enter the market.

The signal that you need to conclude an UP deal will be:

  1. The price of an asset entered the red demand zone
  2. An upward arrow has appeared, which indicates a short-term upward reversal of quotes.

After the appearance of these two signals, you need to conclude an UP deal (CALL):

The signal that you need to conclude a deal DOWN will be:

  1. The price of an asset entered the green demand zone
  2. A downward arrow appears, which indicates a short-term reversal of quotes downward

After the appearance of these two signals, you need to conclude a DOWN deal (PUT):

How to make deals on the rebound from the supply and demand levels, which are not colored in red or green, is shown in the screenshots above. The power of these levels has long been tested, because they are tested by the asset price several times in a row. Thus, the levels that have colored are secondary, since they are not confirmed by the price due to the fact that they appeared for the first time. Personally, I believe that it is better to enter the market when the rebound from the levels of supply and demand that are uncolored.

My earnings on the "Iron Levels" system
The profitability of my trading system is 8 closed plus trades out of 10. And this is a guaranteed 80% closed in profit trades out of the total. And in six months, I managed to increase my deposit by about 3 and a half times, while using no more than 5% of my deposit in trading operations.

Suitable options
For this trading system, there are two types of options that the broker Binomo has - "Binary Options" and "Turbo Options".

Provided that I put a chart of quotes on the M1 timeframe in MT4, I use Turbo Options, and set the expiration time for them to 300 seconds. When I put the TS template in MT4 on the M5 or M15 timeframe, I take “Binary Options”, and the expiration time for them is about 30 minutes.

Automatic trading software

Let's now figure out what are robots for trading. They are paid and free; automatic (make deals for the trader) and semi-automatic robots-advisors (the signal drops at the right moment to invest in a particular option).

I would advise you to choose semi-automatic forex robots. You will trade together, but you will own the situation as a whole. Your personal presence and your personal supervision are essential. Do not forget to analyze what the robot offers you. Indeed, in any case, the responsibility for completing the transaction lies with you.

To correctly configure a trading robot, you must first understand the principle of its operation. After all, this is a guarantee of error-free work and subsequent profitable transactions. Therefore, do not hesitate, ask questions and clarify all the nuances. And for this, the official websites of the developers have the necessary technical support, which will promptly answer all your questions.

Competent application trading systems for forex will allow you to make a better decision. Systems differ in the methods and ways of identifying profitable trades. But in any case, they can help you to be in the black when trading.

What else do we know about Forex systems? They have been worked out and tested by a large number of professionals and experts in the financial market. They determine profitable trade entry and correct exit. Short-term deals will amaze you with their positive results and high productivity. Even leading traders with many years of experience admit that their success was largely dependent on the right strategy and trading system. They have become an integral part of their daily trading, giving constant signals to buy or sell assets.

Correct use of trading systems and subsequent analysis of signals will allow you to always be a winner and open the most profitable deals.

Forex trading systems - the first step into the future

Every trader one day comes to the understanding that trading takes a lot of time and effort, am I not right? Moreover, for me, as a girl, it sometimes becomes difficult to combine household chores, regular work and trading. Plus, there is a great psychological load when the volume of transactions becomes too large, or a series of losses occurs. How to get to the next level? Today, the subject of our conversation will be trading robots and systems. It's not a secret for anyone that automation is used everywhere today, in accounting, in production, accounting and so on. There are even complex mathematical systems that analyze various natural phenomena. Why not take advantage of computers in binary options trading? Let's discuss this in more detail.

What is a trading system?

By tradition, let's start with the basics, give the simplest definition so that we talk about the same thing, and not about different phenomena.

A trading system (robot) is a program that trades automatically without the participation of a trader. As they say, turned it on and forgot it. In the community of traders, you will find many alternative names:

Algorithmic trading
robotic trading
automatic trading
trade advisor and so on

What is the advantage? Everything is obvious. Logically, a robot, unlike a human, can work around the clock with the same efficiency. Plus, such a system has no exposure to emotions and human factors that ruin any trade.

Before we move on, I will make a small lyrical digression. In the vastness of the network, you will find a lot of negativity regarding trading systems, as well as a huge number of empty promises. Some people stop believing in the existence of profitable robots at all, but this is the wrong position. There are good trading advisors; there are even world-class contests on this topic, for example, the Automated Trading Championship. In addition, trading robots regularly win competitions between traders, for example, in the Russian competition on the stock exchange - Best Private Investor. Thus, all attacks in their direction are groundless.

What types of trading robots are there?

It makes sense for you and me to classify systems, firstly, according to the market strategy used:

Working in a trend - on large movements
Flat - trade in a corridor, consolidation
Scalping - make a large number of micro-trades
Universal - works everywhere
Based on neural networks - self-learning robots using quote history

Secondly, according to the principles of capital management used:

Martingale - in case of a losing trade, the next one is opened in double size to cover the loss
Grid of orders - opens several deals in different directions, “hedges” the position
Standard - ordinary transactions in a certain amount of percent of the deposit (the safest method)

This is not to say that some kind of robot is better or worse, each has its own characteristics and goals. For example, a risky martingale will help "accelerate" the deposit, but at a distance it can show large drawdowns and lead to a drain. Nevertheless, in some specific situation, it can come in handy. In this regard, I will not go over to the "personalities" of these or those systems. I will only say that almost any robot can be optimized to a plus if you understand the principle of its operation, which we will now talk about.

As a rule, the creation of work for binary options, as well as Forex, is done in the MQL programming language. However, there are different solutions, because your entire operating system is software code.

When forming the strategy according to which the system will work, indicators are often used. If you plan to use robots, then at this stage it is important to understand which indicators and where will work in profit.

We have already said in previous articles that there can be a trend and consolidation in the market. For you and me, flat is a synonym for a large and long consolidation, a trading corridor. There is a group of trend-following indicators, here are the standard ones in the MetaTrader terminal:

Moving Average - moving averages
Bollinger Bands
Ichimoku kinko hyo
Parabolic Sar etc.

To illustrate, I will give typical signals of advisors based on these indicators, for example, on moving averages.

As you can see, Expert Advisors based on these indicators work only when there is a pronounced trend. In the trading corridor, such robots will show large losses. In addition, many custom indicators are created on the basis of standard ones, so be careful.

The next group that interests us is oscillators. Such indicators just work in the corridor, in the flat. By analogy, here are the standard ones:

MACD
Momentum
CCI
RSI
Stochastic, etc.

Let's consider for an example.

What else can be used?

Standard technical analysis tools:

Trend lines
Technical analysis patterns
Trading levels
Fibonacci levels
Gann trading instruments, etc.

We have already discussed some things with you in previous articles, here, as an example, we will give a Fibonacci correction.

Moment of truth

As a rule, when creating advisors, developers use all these groups, combining them, optimizing them for work at a specific time, adding something of their own. One of the latest developments and our recommendation is trading robot Abi.

What are the features of this system? It uses a whole combination of indicators that work both in a trading range and in a trend. Plus, when working, they use their own secret developments of the creators of the robot. In terms of money management, Abi offers several types of systems to choose from, including martingale and standard. Thus, regardless of whether you prefer aggressive "overclocking" of the account, or a stable profit, you will find what you are looking for. The robot is absolutely free, so nothing prevents you from trying it.

Summarize

In life, as in the market, you need to be in trend, keep up with the times. Today trading robots are a step forward, an evolution, and you have to choose whether to adapt to new conditions or not. The automatic system copes with tasks better than a human, due to the absence of emotional background and stable round-the-clock efficiency. The question concerns not only trade, but also many other industries, so you should think about it. The strongest wins, and I wish you victory!

Will there be a strong level?
Greetings to all readers of our site and all those who want to become successful in the financial market. The topic of our new article will be a long-term strategy for binary options called "Iron levels". Of course, the name is very interesting, but it rather carries a certain convention.

I must say right away that you must clearly understand that there are no iron levels on the market. Any level in the market, one way or another, will be broken by the price and it's just a matter of time. Even if you noted a quality and global level for yourself at first glance, there is still no guarantee that this level will resist the price.

In general, all trading comes down to a game of probabilities. That is, you never know where and how the price will go. Once you have set a level, you do not know in advance how the price will react to it. Perhaps she will unfold on it, perhaps she, in general, will sew it without any effort. Perhaps the price will roll back a little and the like, in general there are a lot of possible scenarios and you cannot know in advance which of them will unfold now.

In this case, you simply set a certain level, you see that it is very strong, and therefore you think that the probability of a reversal from it is much higher than the probability of its breakout. With all this, mind you, probability in this case is the key word, do not forget about it!

Long-term on the fly

So, as you understand, the long-term strategy for binary options is based on the fact that we will purchase this or that option for a fairly long period of time.

Who is this strategy for? First of all, it will suit those people who are looking for a conservative and simple binary options strategy for trading. In addition, due to their workload, these people simply cannot physically devote a lot of time to trading. For example, a person is constantly working, he is busy with something else. Therefore, he aims to work within the framework of such an approach, which will not take much of his time, but at the same time, this approach will be simple, logical, and most importantly, workable.

Description of the strategy

As it has already become clear, we have a simple long-term strategy that is very simple to use. I think that even any beginner can easily figure out how to use this trading strategy on binary options in practice.

First of all, I would like to point out that there are several main indicators within this strategy. The most important indicator is SUPDEM. This tool automatically builds the so-called supply and demand zones, from which we will just work with you.

There is also a BKGA 10 SMA indicator. This indicator is displayed on the chart as an arrow. And the arrow itself appears when the price breaks in one direction or another a moving with a period of 10. In addition, there is a moving with a 200 period on the chart. In this case, this indicator is auxiliary and allows us to understand which trend we are in. globally.

There will be few signals

The working interval for this strategy is D1. Therefore, you must clearly understand that this system will not have a large number of signals. But, for example, if you set pairs 10 on the chart, then you may have several fairly good signals in a month. I am more than sure that many of you will not be satisfied with this.

In general, you should understand that the main working interval for this strategy is D1. As for the underlying assets, here you can choose any asset that you like, there are simply no special restrictions here. As part of this strategy, you must clearly understand that if the price has approached a certain level, then we still have no guarantee that the price will reverse on it.

Download

A huge number of different nuances can affect the result of the transaction, it is important to understand how strong the level is, in addition, a transaction with a trend will be of higher quality than against it. It should be understood that in a strong uptrend, resistances will break through, absolutely, just as in a strong downtrend, support will break through. If we talk about the presented trading strategy, then if you do everything correctly and according to the rules, then it is quite possible to achieve about 75% of profitable signals over a long distance, and this is a very good figure.

Using the strategy

Now let's talk with you about how to use this strategy correctly in practice. First, let's talk about the rules of this strategy. To purchase a call option, we need to wait for the moment when the price touches the level formed by SUPDEM at least a little, and a green arrow appears. In addition, the signal will additionally strengthen if the price is above the 200 SMA, which will tell us about the development of an upward global trend.

Watch strategy video review


As for the rules for opening a put option, here we are waiting for a touch of the level, for the appearance of a red arrow, and if the price is below the 200 SMA moving distance, then this strengthens the signal. The expiration time for this strategy is 10 candles or 10 days. For a better understanding, let's look at a real example with you!

Here we see that we have a level, while, where I marked with a red arrow, we have a touch of this support level, and a green arrow appears. In addition, we see that our price is above the blue moving average of the 200 SMA, which indicates to us the development of an uptrend. All these conditions are suitable for us to purchase a call option for 10 days. As you can see, as a result, the deal worked just fine.

As you can see, there is nothing complicated here, you just have to understand that in the conditions of such a large interval, you will need to be patient, and there will be few transactions!

conclusions

The presented long-term strategy for binary options called "Iron levels" is the choice of those traders who prefer conservative trading. In any case, this strategy is very interesting and I can safely recommend that you pay your attention to it.

A person can be given a really good and high-quality strategy, which has proven its effectiveness over the years. However, being a psychologically unstable person, he will simply drain money through this system.

If you are an adherent of aggressive trading, then you better not even look closely at this strategy, because with 10 currency pairs, you will receive, on average, 5-6 signals every month. I hope that this material was useful for you and you can use it competently in practice!

In binary options markets, the engines of quotes are supply and demand. When supply is greater than demand, the quotation begins to fall, but if demand intensifies, the market grows rapidly. It will fall until the quote is in the demand zone, from where a new round of upward growth begins. In this way, players "have fun" and make fortunes by running price charts back and forth.

Therefore, if you, as a trader, learn to understand this “wave-like movement” and can determine the “levels” of supply and demand, you will be able to earn, if you do not learn, there will be no earnings. A trading system based on the movement of these supply and demand levels will allow increasing the amount of the deposit by 3 times in just six months, so any trader can try this technique.

A brief description of the strategy

To independently carry out technical analysis, you will need to install a good and stably working Meta Trader 4 platform on your computer (you can download it here), and it is best to trade with a broker agent Binomo, since only this broker has a minimum lot rate of only $ 1, other brokers have lots the rates are much higher.

You will also need this software - you can download and install it in the root directory of the downloaded platform (it is located on the "C" drive).

After all the installations, the working diagram should take something like this:

In the diagram, the green areas indicate the supply level and the red areas the demand level. The arrows that will appear on the diagram will indicate the points where the price crosses the moving average, and this clearly indicates that there is a tendency to a decrease in quotations or to their growth.

Receiving trading signals

Signals indicating the growth of an asset to a trader are the following signs:

The cost enters the demand in the area indicated in red;

An upward-pointing arrow appears, which indicates that quotes are turning up in the short-term.

After the appearance of these signals, the trader can enter into an agreement to increase the value of the asset.

The signals that indicate to the trader that the asset is falling are the following signs:

The cost is included in the demand area indicated in green;

An arrow appears pointing down, which indicates that quotes are turning down in the short term.

After the appearance of these signals, the trader can enter into an agreement to reduce the value of the asset.

The diagrams show the conditions for concluding deals - a rebound from the level of supply and demand, which are not painted in green and red. These levels can be considered quite powerful, since they are tested several times in a row by the value of the asset. Naturally, the colored level is considered a level of secondary importance, since they have appeared for the first time and have not yet had time to be confirmed by the price. It is best to start your market entry during the rebound from uncolored supply and demand levels.

Trader's earnings on this system

Departure from the already confirmed level can bring the trader 8 "positive" deals, out of 10 carried out by him. Thus, closed 80% of transactions will increase the trader's deposit by 3 times, however, provided that the size of the transaction does not exaggerate 5% of the size of the deposit.

What options should you work with?

Binomo brokerage company has a number of options suitable for working with this system (for example, "Turbo Options" or "Classic Options"). In the event that you put the M1 timeframe on the template, then the optimal expiration period is 5 minutes, if the template is set to the M5 and M15 timeframes, then the expiration time should be set within 30 minutes.

You can try to use these best practices in your work, perhaps in your hands they will show even better results!

Download the "Iron Levels" strategy for trading binary options for FREE