Please Share this Trading Strategy Below and keep it for your own personal use! Thanks Traders! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more.

Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow. The article on binary option trading strategy was useful.

Thanks sharing for valuable information about binary options. Thanks for the article. Are you referring to building a strategy multi-step indicators in a trading platform?

Does the starting point and ending point of your 50 candle low have to be the same color candlestick too? You from tradingstrategyguides, could you create an indicator with these settings for us binary traders. That way we would be better able to migrate to Forex. remembering that I am a loyal customer of yours and I pray that one day you can help us with this.

And thank you so much for that knowledge. Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page. Binary Options Trading Strategy — Best Seconds Strategies by TradingStrategyGuides Aug 8, All Strategies , Options Trading Strategies 21 comments.

And that, my friends, is the real beauty of binary options. What are Binary Options? So, the first thing you need to decide upon is to select the asset to trade.

Trading binary options require you to correctly forecast two things: Whether the market will rise or fall. Your forecast needs to be accurate during a certain time frame — called the expiration time. The Best Binary Options Strategy Our team at Trading Strategy Guides is ready to share with our beloved trading community our second binary options strategy.

Use the second chart 1 Minute TF The 1-minute binary options or the seconds time frame is the best chart for trading binary options.

See below: Step 2: At the moment the 50 candle low develops, we need an RSI reading of 20 or below Since this is a reversal trading strategy we need the RSI indicator to show a bullish reversal signal.

See below: Step 3: Look for a bullish divergence to develop between the RSI indicator and the price. See below: Step 4: Buy a Call Option after the first candle that closes above the high of the 50 candle low The first thing you need to do is to mark on your chart the high of the 50 candles low with a horizontal line.

If you want to buy Put binary options, use the same binary options guide, but in reverse. See below: Conclusion — Binary Options Trading Strategy Before learning how to make money trading binary options you need a great Binary Options broker.

Thank you for reading! Also, please give this strategy a 5 star if you enjoyed it! No Ratings Yet. First option recovery says:. April 6, at am. Rury says:. January 4, at pm. Ky says:.

January 14, at pm. lenniiijuss says:. February 20, at pm. TradingStrategyGuides says:. March 23, at pm. aman says:. February 22, at am.

Keon says:. May 20, at am. dipak kujur says:. March 21, at am. In order to go to step 2 for a BUY trade , the fractal must show an up fractal and be appearing above the alligator teeth. This means there has not been a real breakout in the recent timeframe. You can also trade with the breakout triangle strategy. The reason this strategy has to wait for at least five consecutive candles is that this is the time where either there is a pullback that is forming, a reversal may be forming, or the price action is still consolidating in a flat market.

Any one of those does not sound pleasant if you are looking for a big upward bullish move to form on the chart. As you can see, the price action stayed quiet and did not move up or down drastically these five candles. That is exactly what you should see when trading this strategy. Once you see that five consecutive candles did not make a drastic move to the downside and stay in between the high of the fractal candle and the alligator teeth, then we go ahead and make an entry order.

You can make an entry this way, or if you are sitting in front of your charts live with this occurs, then you can make a market order also.

Either one is ok to do because the same criteria are needed. As you can see, I marked where our original fractal was discovered. What happened after was that there were five or more candles that appeared that did not drift down to the alligator teeth, the alligator lines did not cross, and the price action finally broke above the fractal candle thus triggering a trade.

This most likely means the alligator is going back to sleep and the price action will either head the other way or consolidate. Check out my other article here that talks about these important areas. This will give you the best opportunity to salvage a trade if the price action would turn on you and turn into a bearish trend. These basic fractal trading techniques should lead you in the right direction if you have been searching for a great strategy to use with these indicators.

There are many different strategies you can use with these indicators, but in our experience, we like this combination of the Bill Williams indicators. The Fractal Trading Strategy uses the combination of price action analysis that complements these great indicators.

So if you are one of the sceptics, give this strategy a try and let us know your results. Please leave a comment below if you have any questions about Fractal Trading Strategy! Like this Strategy?

Grab the Free PDF Strategy Report that includes other helpful information like more details, more chart images, and many other examples of this strategy in action!

Please Share this Strategy Below and keep it for your own personal use! Thanks Traders! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow.

I think the second picture in step 2 is wrong. If so, please e-mail me after the update. Thank you, this was very useful. I may be implementing this a little differently than you suggest, but the fractal support and resistance concept is very powerful. A sell fractal was below the alligator teeth before the entry point.

Why was the buy signal not reset and invalidated? Can you clarify on this? More conservative exit: After the fractal formed, needed to have bars stay above the teeth. Therefore, this is an important limit. So, rather than waiting for any of the lines to cross, exit when prices breaks below the teeth.

More technical SL via the teeth: After the up fractal formed, price bars must stay above the teeth. Therefore, the teeth are an important level throughout the trade, and if price breaks below the teeth, you want to be out of the trade. So, as you wait for your entry, simply look for the most recent down fractal and set the SL to the teeth value that corresponds to that down fractal bar. Then you can trail the stop on the teeth either with each new bar, or just with each new down fractal.

This is very helpful in trading, although I have not tried it and I am also a beginner in trading.. I will try it before going to the paid signal stage. RSI is an acronym for the Relative Strength Index. It is one of the most popular indicators of the oscillator class. It consists of one line. The calculations of this line happen by a complex formula.

The RSI line shows oversold and overbought conditions from It suggests buyers are winning, and the trend will come down. It mentions sellers are driving, and the trend can go up. Fifty is the neutral level. It marks neither bulls nor bears. In this strategy, the Relative Strength Index acts as a filter. This is because fractals frequently surface on the chart. You have to combine it with another indicator to filter the market noise. Such market noise or whipsaw makes detecting entry and exit points harder so we have to use an oscillator to help limit these whipsaws.

Hence, the RSI oscillator helps in filtering any false signals. Setting up a trading platform is part and parcel of any trading strategy. You might be well aware of the Tradingview platform. Charts show us plenty of info, so what we need to do is make this data concise. We can only compress the data if we set up our trading platform accordingly.

When setting up your trading platform, you should ask:. I am answering these questions before the trade helps you get the relevant info. One of the good things about this strategy is applying it to any asset. For instance, you can use it for any forex pair or stocks.

This is because they have a low-profit percentage. You need to specifically configure the RSI. The period of the RSI should equal eight.

You can make the overbought area green and you can paint the oversold region red. You can see an example of an RSI indicator in the picture below. First, the chart should show a descending fractal. This fractal has a structure like a downward triangle. You can find it under a Japanese candle. Second, the oscillator must cross level 50 and enter the overbought zone.

The extremum consists of 5 candles. There is a delay of two price elements in real-time before it appears on the chart. In most cases, a fractal appears first, followed by confirmation from the RSI. You can enter the market right after the closure of the signal candle.

by TradingStrategyGuides Mar 15, All Strategies , Indicator Strategies , Indicators 14 comments. Do you know how to trade with the best Fractal Trading Strategy? This Fractal Trading Strategy will answer all of your questions about fractals. Before we start trading using fractals profitably, I want to give you some background information on Bill Williams himself.

This will help you understand the significance of these special indicators. Also, read about Scaling in and Scaling out in Forex. Mr Williams developed a unique theory by combining the Chaos Theory with trading psychology. Along with the effects they have on the market movement. Each indicator has a specific value. They are great to trade with if you understand the basic concepts of each one.

His market view was: in order for you to make money trading, you must be able to understand that basic market structure. I could go on for quite a while about Bill Williams. But the important part to note about all of this is that his analysis and perspective of the market were different. These powerful indicators are not outdated, as some claim.

They work very well when you apply the right strategy. His indicators come standard on most trading platforms. Well, These are simply arrows that are on top or below the candles on the chart. These fractals are formed when five repeated bars align in a distinct manner.

You need the fifth bar to close to discover the highest high or lowest low. We will go more into detail about this indicator and show you how to use the alligator indicator. You can find the fractal indicator on mt4 or other popular trading platforms. There is no need to have to run a fractal indicator download because it will already be there for you.

Bill Williams Alligator: How does the Bill Williams alligator indicator work? This indicator consists of 3 specific moving averages. We will go more into this indicator in a bit. Each of these lines has a specific name. This is because we will reference them later on in the strategy. We developed a strategy called the Big Three Trading Strategy that uses three specific moving averages as well if you wanted to check that out later. I do like each of these 5 indicators, but after extensive research and testing putting together, the alligator and fractal indicator not only was the easiest way to trade with his indicators but are extremely powerful with the right strategy.

As stated above, a fractal formation is built by five consecutive candlesticks where:. To the left and to the right of the middle candlesticks we have two other candlesticks.

The basic fractal trading strategy is very simple. On most trading platforms the fractal arrows that appear above the price action are green and it signals the potential of a swing high being developing. Conversely, fractal arrows that appear below the price action are red. The red arrow signals the potential of a swing low being developing or an important price level being created.

With these trading principles, we have developed a Bill Williams trading system that can signal low risk entry points. The First step you are going to want to do is, of course, throw these important indicators on your charts.

As I have said, they do come standard on every trading platform that I am aware of so this should be very simple for you to do. The fractals indicate a bottom or a top. The basic fractal indicator is composed of a very minimum of 5 bars. So when you see a fractal here is what may have happened for it to appear:.

Above are the unique alligator indicator lines on the chart. Now you need to be aware of where the fractals are being placed on the candles for this strategy concerning this special indicator. I drew a yellow circle on this specific up fractal. This up fractal appeared on this candle ABOVE the red line or the alligator teeth This is criteria 1 for the Fractal Blaster strategy.

In a BUY trade, the Fractal must appear on a candle ABOVE the red line alligator teeth. What is happening here is that the fractal forms a new high to the previous fractal and therefore made an up fractal appear on the candles. In order to go to step 2 for a BUY trade , the fractal must show an up fractal and be appearing above the alligator teeth. This means there has not been a real breakout in the recent timeframe. You can also trade with the breakout triangle strategy.

The reason this strategy has to wait for at least five consecutive candles is that this is the time where either there is a pullback that is forming, a reversal may be forming, or the price action is still consolidating in a flat market. Any one of those does not sound pleasant if you are looking for a big upward bullish move to form on the chart.

As you can see, the price action stayed quiet and did not move up or down drastically these five candles. That is exactly what you should see when trading this strategy. Once you see that five consecutive candles did not make a drastic move to the downside and stay in between the high of the fractal candle and the alligator teeth, then we go ahead and make an entry order.

You can make an entry this way, or if you are sitting in front of your charts live with this occurs, then you can make a market order also. Either one is ok to do because the same criteria are needed. As you can see, I marked where our original fractal was discovered. What happened after was that there were five or more candles that appeared that did not drift down to the alligator teeth, the alligator lines did not cross, and the price action finally broke above the fractal candle thus triggering a trade.

This most likely means the alligator is going back to sleep and the price action will either head the other way or consolidate. Check out my other article here that talks about these important areas. This will give you the best opportunity to salvage a trade if the price action would turn on you and turn into a bearish trend. These basic fractal trading techniques should lead you in the right direction if you have been searching for a great strategy to use with these indicators.

There are many different strategies you can use with these indicators, but in our experience, we like this combination of the Bill Williams indicators. The Fractal Trading Strategy uses the combination of price action analysis that complements these great indicators.

So if you are one of the sceptics, give this strategy a try and let us know your results. Please leave a comment below if you have any questions about Fractal Trading Strategy! Like this Strategy? Grab the Free PDF Strategy Report that includes other helpful information like more details, more chart images, and many other examples of this strategy in action! Please Share this Strategy Below and keep it for your own personal use! Thanks Traders!

We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow. I think the second picture in step 2 is wrong. If so, please e-mail me after the update. Thank you, this was very useful.

I may be implementing this a little differently than you suggest, but the fractal support and resistance concept is very powerful. A sell fractal was below the alligator teeth before the entry point. Why was the buy signal not reset and invalidated? Can you clarify on this? More conservative exit: After the fractal formed, needed to have bars stay above the teeth.

Therefore, this is an important limit. So, rather than waiting for any of the lines to cross, exit when prices breaks below the teeth. More technical SL via the teeth: After the up fractal formed, price bars must stay above the teeth. Therefore, the teeth are an important level throughout the trade, and if price breaks below the teeth, you want to be out of the trade.

So, as you wait for your entry, simply look for the most recent down fractal and set the SL to the teeth value that corresponds to that down fractal bar. Then you can trail the stop on the teeth either with each new bar, or just with each new down fractal. This is very helpful in trading, although I have not tried it and I am also a beginner in trading.. I will try it before going to the paid signal stage. Everyday we learn new things about how to trade forex and make profit what happen to old technique and does it expire.

The new techniques are there for if you want to try something new. Hi, if i set up the fractal at 15 period , does it mean it will give signals only after every 15 candles? Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page.

Fractal Trading Strategy: Fractal Blaster Trading Techniques by TradingStrategyGuides Mar 15, All Strategies , Indicator Strategies , Indicators 14 comments. Table of Contents hide. Ronald Kaputin says:. November 20, at pm.

So, you should place a CALL order with your binary options broker at that point. A sell fractal was below the alligator teeth before the entry point. RSI indicator on the chart. The calculations of this line happen by a complex formula. Expiry Dates and Fractals Indicators which are repainting, like fractals are difficult to use without integrating them with another indicator or system. Charts show us plenty of info, so what we need to do is make this data concise.

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