“The free e-book of the OFS Trading System has initially been written for online forex trading, but it appeared that this trading system is also very suitable for binary options trading. In this article I’ll demonstrate how to use the OFS Trading System in case of binary options trading.
The OFS Trading System originally is a trend trading system, in case of which each time the same patterns are being traded. These patterns are comprehensively explained in the free e-book of the OFS Trading System. To be able to also use the OFS Trading System while practicing online binary options trading, we’ll have to choose the right expiration time as well as the right timeframe.
The expiration time in case of online binary options trading
In case of forex trading you’ll gain profit when the price has reached your take profit level. In case of online binary options trading you’ll gain profit when the price, while the expiration time is ended, is lower or higher than the price was at the moment you opened a position.
It’s very important that you should keep this distinction in mind. So in case of online binary options it’s definitely not the intention to reach a certain price level. Even if the difference is only 1 pip at your advantage, it will be already sufficient enough to gain profit!
Instead of aiming at a take profit level, like in case of online forex trading, in case of online binary options trading it’s much more important to aim at an expiration time, which corresponds with the trading setups according to the OFS Trading System.
At this it’s important that a trade has enough room to develop itself. I’ll show this to you using the following example:
On the above shown figure you can see a trading setup on a 5 minutes chart according to the OFS Trading System. The black horizontal line indicates the entry for this setup. At the closing of candlestick 1 we have an entry according to the OFS Trading System.
In case of binary options at this point it’s important to determine the right expiration time. Candlestick number 1 is going to close at 11.10 hours and on that moment you can make a choice out of the expiration terms 11.15, 11.30 and 12.00 hours.
You might rather compare the expiration term in case of binary options trading with the stop loss in case of forex trading and the purpose of this expiration term is to grant a trade enough moving space. If in case of this example you should have chosen for an expiration term of 11:15 hours, you would have had a pretty big chance that you would have closed your position suffering a loss. In this example the difference with the entry was negligible, however candlestick number 3 (which closes at 11:15) could just as well had been closed above the horizontal line.
In this situation it would have been better to choose the 11.30 hours expiration time. This term equals candlestick number 3 and as you can see the price was closing well below the entry.
So take good care that, while determining an expiration term, a trade is going to get sufficient moving space!
The most suitable timeframe in case of online binary options trading
In case of forex trading you can employ the OFS Trading System on all timeframes. In case of online binary options trading this will depend on the number of available expiration terms.
For instance Banc de Binary offers a large choice when it’s about expiration terms. In case of contracts from $1 up to $100 you can make a choice out of 4 expiration terms, namely 15 minutes, 30 minutes, one hour and at the end of the day. When you’re trading contracts as from $100, then you’ll have by means of the so-called Option Builder a fully free choice when it’s about terms of expiration.
As you have been learning in the meantime, in case of binary options it’s quite important to choose the right term of expiration in order to grant a trade enough moving space. Consequently you ought to base the choice regarding timeframe on the available expiration terms.
Binary options contracts lower than $100
In case of contracts which are lower than $100, it’s sensible to use the 5 minutes chart at most in order to go looking for trading setups according to the OFS Trading System. It so happens that you’ll consequently be able to choose out of expiration terms, which are sufficient to give a trade enough room to develop itself.
Binary options contracts as from $100
In this case you can determine the expiration term, with an accuracy amounting up to 5 minutes at least, till a maximum of 23 hours. In this case you can use the OFS Trading System up to and including the 4 hours chart and consequently you’ll have a much more wider range to choose.
The OFS Trading System is very suitable for online binary options trading if you’ll take choosing the right expiration times as well as the right timeframe into account. Apart from that the employment of this trading system does not differ a lot from online forex trading. As it happens judging a trend and determining the right entry moment just remain the same.
You can also choose to employ the extensive version of the OFS Trading System in case of online binary options trading. Also in this case counts that you’ll have to give a trade sufficient moving space by choosing the proper expiration term.”
OFS Trendtrading System Guide
Website:Binary Options Daily
Today I just wanted to share with you one of the price action strategies I truly love, I like to call it “The Rejection”. Essentially what we are looking for in this particular strategy and example is a drop in price after heavy upward momentum in which a bar breaks and closes below the last green bar.
Once this occurs we wait for a pullback and for price to get rejected at the start of the candle which was had shifted the momentum by closing below the last green bar.
Once we see that three green 15 minute bars were rejected around that area, the 4th bar we would be taking a PUT immediately as soon as the candle opens as this is our opportunity to get in at a high probability “DROP” area.
Website:Binary Options Daily
Website:Binary Options Daily Forum
“The inspiration for using this indicator comes from chris.r.floyd.
You can just read chris’ post to get the full instructions. But, to summarize, I load the indicator on a 1M chart and enter a trade when the price reaches the 161.8 fib level as shown on the indicator. If the currency pair has risen to that level, I take a Low trade to expire on the next 15-min. If the currency pair has fallen to the 161.8 level, then I take a High trade. If the signal occurs within the lockout period, I take the trade for the following 15-min expiry.
The indicator I am using is different from the one that chris.r.floyd is using. But, I think it is doing the exact same thing.
PLEASE NOTE:As you see on chris.r.floyds post about the 60-second system, the rule I am using for the direction of the trade is EXACTLY THE OPPOSITE of chris’ rule. Don’t mix them up. I am referring to the fact that under his rule for 60-second, he takes a High/Call if the currency has risen to the 161.8. I am taking a Low/Put in that situation. It makes sense that this rule would be different when you are trading on a 60-second window versus a 15-min window. Let’s not mix up the rules between these two similar but different methods.
1-2-3 MTF v3.1
Website:Binary Options Daily Forum
This one is for 60 second expiries and in 2 nights, with 2 pairs (EUR/USD and USD/JPY), has gone 17/18, with the loss being my fault (I didnt look at the bbands, this will make sence below). It’s a 123 pattern with Fibonacci lines. I have spent all week reading about 123 patterns and Fibonacci, and staring at this indy at work. Backtesting wont work unless you are really good with fibos and can draw your own lines. The indy will only draw on the chart when there is a setup in progress, and erese what its drawn once the setup is done.
So heres the system setup.
1. Download the indicator. I set “target” to “0″, and change the colors, to clean it up a little.
2. Put it on a 1 Minute chart. If nothing shows up at first this is fine. It will only draw on the chart when there is a setup in progress.
3. Put default Bollinger Bands on your chart. BB’s are used as a confirmation for entry.
Thats it! Your chart is ready.
Here are the Call/Put signals.
1. Once the indy draws on your chart it’s time to start paying close attention as a setup is in progress.
2. We are waiting for the current price to hit the fibo level of 161.8. THATS IT! No other levels are used. Once 161.8 is hit in an uptrend place a call. Once 161.8 is hit in a downtrend place a put.
3. When price is approaching 161.8 and your sure a trade is coming, look at your bbands for confirmation.
If they are squeezing avoid the trade, if they are seperating, jump in.
On the 1 minute chart when price hits the 161.8 and bbands confirm, this is a breakout!
1-2-3 Pattern MTF
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