Binary Trading Strategy Tutorial

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Introduction

The Pocket Option trading platform is one of the best and reputable for trading Binary Options. It has been around for many years and offers all the charts that you need for trading forex, stocks, indices and crypto.

The platform also offers a web based platform and mobile application depending on your preference.

Binary trading is different from regular trading as your predicting the way in which the market is going to move within a certain time period. This is done by investing a certain amount on each trade to get a percentage back if your prediction is correct.



To Start

The first thing you will need to do is goto pocket option and create an account. When you have opened your new account you can choose to use the web trading version or download the app for mobile. In this strategy tutorial we will show you examples on the mobile platform but you can still use the web based platform if you wish.



Settings

Once you have downloaded the mobile app or logged into the web based trading platform you will first need to change your account to demo by clicking on the balance section (shown below).

The next thing to do is change the time settings (for each candle) to M1 (1 minute) by clicking on the section shown below (on the right). M1 represents the time of each candle shown on the chart and we will be taking 1 minute exploration trades.

Next you will need to add an indicator to your trading chart.

First click on the indicator/drawing settings as shown below.

Once you have done that you will be directed to the next menu item. Choose "indicators" from the list which will bring you to a list of indicators to chose from.

You then need to choose the "STOCH Stochastic Oscillator" indicator from the list and choose save.

Once you have done this you then need to edit the settings of the stochastic as follows.

%K period = 5

%D period = 3

Smoothing period = 3

As shown below

Also set the overbrought and oversold levels to 80 and 20 and change the colours to green and red as shown below. Press save and go back to the chart

Next choose your pairs to trade with from the section below. The best pairs to use with this strategy is a trending market (ie Up and Down movements in waves touching the stochastic overbrought and oversold areas). You are also looking for the highest payout rate if possible.

When you have chosen your assets to trade you need to choose the amount you want to invest on the certain trade (shown below). The section on the right (below) will show you the payout if your trade is successful.

Once all these setting have been activated then it's time to place your trades with our strategy on the platform.



Strategy Overview

The strategy that we will be using takes advantage of the overbrought and oversold conditions in the market and waiting for a trend reversal. In a normal trending market this situation is common, although the markets can trend for a period of time in either direction (up-trend or down-trend) so waiting for the rsi crossover (trend reversal) is imperative. You will then place your 1 minute exploration trade in the correct direction



Strategy Instructions

When trading you are waiting for the Stochastic Indicator to be touching (or crossing over) either the overbrought or oversold area. When this happens you are then waiting for the green line to coss the red line in opposite direction (trend reversal).

You can also place your trade early if you expect the crossover is going to happen. This gives you a better chance of winning the trade.

In the oversold (bottom) area you are looking to place a 1 minute CALL trade when the green rsi line is crossing over the red rsi line.


In the overbrought (top) area you are looking to place a 1 minute PUT trade when the green rsi line is crossing over the red rsi line (in the opposite direction).


The yellow lines and circles (picture below) show the Stochastic crossovers and when to take the appropriate trade (in the opposite direction).

A trending market is the best time to trade this strategy as it respects the overbrought and oversold areas more often. This strategy has been tested and we have got around an 80% winning rate with it.

Please make sure you practice on the DEMO account thoroughly before investing your own capital.

If you have any question or you need help regarding this strategy then please don't hesitate to contact us.


Happy Trading




DISCLAIMER

We offer this binary trading strategy to help you make money on the Pocket Option trading platform. We are no way linked to the platform, other than having our own trading account. We are not financial advisers. We are in no way responsible for any losses incurred whether its part or all of your capital. Please do your own research on binary options trading and investing before investing money. Investing is a very risky business so make sure you only invest what you can afford to lose.

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