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Binary Trading Option Higher, Lower.

This research report summarizes strategies for binary trading higher/lower options. It discusses evaluating the average true range to determine an appropriate barrier amount within the selected trade duration. The report also outlines lower risk strategies of trading in the direction of the trend, as well as higher return strategies such as trend reversals and trading against the current trend. Finally, it emphasizes the importance of money management and maintaining a fixed trade amount.

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stefan Michaelson
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1K views

Binary Trading Option Higher, Lower.

This research report summarizes strategies for binary trading higher/lower options. It discusses evaluating the average true range to determine an appropriate barrier amount within the selected trade duration. The report also outlines lower risk strategies of trading in the direction of the trend, as well as higher return strategies such as trend reversals and trading against the current trend. Finally, it emphasizes the importance of money management and maintaining a fixed trade amount.

Uploaded by

stefan Michaelson
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Research Report Date:

11/07/2022.

Research Topic:- Binary Trading Option( Higher/Lower).

Assigned by: - Mr. Bhushan Ambre.

TRADING HIGHER/LOWER BINARY OPTION.

Binary Options Higher lower type of trade is for pro traders where you can earn a
standard profit with a carefully selected strategy. The higher lower type of binary
trade provides profits ranging from 23% to 350% return on investment.

Trade Duration.
You can set trade duration in two ways, either you can set a fixed expiry time for
your trade as “End time” or you can set a specific type of time units like “Tick”,
“Seconds”, “Minutes”, “Hours”, “Days”.

Barrier.
Next, you need to select a barrier. You can define the barrier positively or
negatively. “Plus” sign before the barrier x amount means, from the current price
plus x amount. A “minus” sign before the barrier x amount means, from the current
price minus x amount. Look at the example below: Say, the barrier is +2.39 The
current symbol price is 7130.10 Trade duration: 5 ticks Then if we select higher
with a barrier of +2.39 that means if the market stays between entry + the barrier
price: 7130.10+2.39 = 7102.39 until the end of the trade, then we will win the trade.
Changing Symbol: You can change the default symbol at any time according to
your needs. Just click on the symbol name arrow, it will open a drop-down to
choose other symbols like Forex, Stocks, Synthetic Indices, eStock Indices,
Commodities, etc
Strategy – Lower Return – Lower Risk.

This is the easiest method to gain constant profit with lower risk. This strategy
works with the basic trend analysis. If the market is rising up or in an uptrend trend
or you know that the instrument or currency will move a certain amount within a
limited time, then you can place the “Higher” trade with a barrier. If the market is
falling down or in a downtrend trend or you know that the instrument or currency
will move a certain amount within a limited time, then you can place the “Lower”
trade with a barrier.

Trade result
Introducing ATR (Average True Range): ATR indicator shows the average price
movement under a certain period. The importance of ATR in Binary options higher
and lower is knowing if you select 5 minutes of trade time, when how much o
average a specific instrument can move during that time.

In the above picture, we have displayed the Average True Range for the 5 minutes
chart. ATR showing 2, which means on an average per 5 minutes, USDJPY can
move 2 pips. So we have to place a barrier within 2 pips.

Multiple Currency Dashboard

The indicator posted above you can scan for a signal with multiple currencies or
symbols one at a time with any preferred time frame. Here we have shown the
daily trade signal.

Inbuild indicators
You can use inbuild indicators that come by default with the Deriv chart. All you
need to do is to add any indicator with your preferred settings on the chart for the
technical analysis. Check the video posted at the top. Here in the picture above,
we have added a Bollinger band on the Deriv chart for instant analysis.

Sell trades early exit


With this method, you can close your trade before expiry. Sometimes if you think
that market is going against your trade entry point. Then you can close that trade
with the sell option. But sell option availability depends on the market condition. If
you sell the trade, then you can get some percentage return of your capital rather
than losing the whole money.
Strategy – High Return – Sharp Entry
With this strategy, you can make a higher return, but the trade risk will also be
higher than as usual. Plus there, will not be much consistency in winning, but once
you spot a good signal, that will compensate all of your losses with one winning
trade.

Trend Reversal
You will earn a higher return if you trade against the current trade. If the current
market is upward, and you place a sell trade, downward against the trend. Then
you will see, it’s providing you the highest return. This situation can only occur
when you get an early signal on trend change. Suppose the market is moving
upward and you know that the nearest point is a resistance level. The market might
reverse back from that level. So you can advance place a sell trade or place lower
trade on that level, only if the market shows some reaction. Because sometimes
the market breaks out any resistance levels if the current uptrend is strong.
In the example above, we can see in the minute chart, market is trending down.
Therefore “lower” trade had only a 48% return. But “higher” binary trade had a
187% return. Now, if we consider that at the current price point, there is a bounce
up area, then we can place a “higher” trade with a trade duration of 1-5 minutes.
This trade will give us a good return. But such a situation will occur less frequently.
Therefore trading selectively, in this case, is highly recommended. Choose only the
best possible trades. Introducing WD Gann Pivot Points One of the sharpest pivot
point indicators ever. Where you can plot pivot points based on daily trend and four
hourly plus hourly trends. Indicator plots pivot automatically on the chart.
In the above picture, notice USDJPY created a double bottom at a minor support
level and interim day top at four hourly resistance level and daily open price level
conjunction point.

One note, don’t forget to use ATR along with it. Because ATR finally decides what
will be the barrier amount. The rest of the indicators indicates trends only.

Money management –
Ending Notes: Money management is the key here. Make sure you maintain a
fixed amount per trade. Otherwise, unbalancing the lot size on each losing trade to
recover losses is not a good idea. Check the link below to learn more about money
management strategies.

Created By: - Rohit Goswami.

(Research Analyst).

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