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Greetings, our dear readers and lovers of trading. The topic of our article will be a working strategy for binary options, which is based on divergence. In general, within the framework of this article, I want to tell you about an incredibly simple and working approach for binary options. However, even because of its simplicity, it does not lose its relevance.

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In essence, we will be trading through the appearance of a divergence. In my opinion, divergence is a simple but incredibly effective signal that can only be used in trading. Of course, you must understand that even such a high-quality signal will not work from time to time. However, a good divergence will work at least 70% of the time.

Who is this trading approach suitable for? It is suitable for beginner traders who this moment time, for quite objective reasons, they do not yet have a high-quality trading strategy in their arsenal. I want to make a reservation right away, what I will show you is not the ultimate working trading strategy for binary options. I would say that this is a kind of foundation, already on the basis of which you can create your own strategy. And here is another basis for the approach: .

Therefore, it will be quite possible to choose your own additional filters, which, in your opinion, will help you get better and more stable results. You must understand that your approach should be simple, logical and most understandable for you. It makes no sense to overload your strategy with a huge number of unnecessary tools. If we talk about indicator strategies, then 2-4 indicators are enough for your eyes to get a high-quality system on the exhaust.

Moreover, you must be able to prioritize wisely! Yes, the strategy is the most important factor in determining the quality of trading, but it is far from the most decisive. That is, it is not enough to have a high-quality strategy, while you need to have psychological stability and follow the rules of money management.

That is, if you have even the most profitable strategy at first glance, but at the same time you do not follow the rules of money management, or every time you follow your emotions, then you simply will not be able to trade efficiently. This has already been proven by the experience of thousands of different traders.

Dealing with discrepancy

What is divergence anyway? I'm not going to give you long and tedious use of different terms, I simply don't think it's necessary. In simple terms, divergence is a process when the oscillator readings diverge from the current market movement. That is, if we see that, for example, the oscillator renews its maximum, while the market fails to do so at the same moment, then we have the same divergence. At its core, this is a very strong signal, which is a harbinger of, if not a market reversal, then at least a good rollback, which we can just use for personal trading purposes.

The first thing you need to understand when applying a divergence is that it doesn't appear often, especially if you are waiting for a quality divergence. However, the rarity of signals is more than justified by their accuracy. Which indicator will help us look for divergence.

The most popular representatives of the group of indicators that will help you look for divergence are: Stochastic, RSI, MACD.

Naturally, any novice trader will have a question, which indicator is better for these purposes?

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Generally speaking, it is impossible to single out a clear favorite who would not have flaws. I would say that here the question rests on a purely personal perception of each trader. It’s just that it’s convenient for one to use stochastics, and for another RSI. So you need to dance personally from what you yourself specifically prefer. Some people find it convenient to use one, while others need to use a completely different one. Personally, within the framework of this article, I want to show you how a working binary options strategy based on the search for divergence using the MACD behaves.

It was not for nothing that I called the MACD a truly unique indicator. The fact is that it has incorporated aspects of a trend indicator and an oscillator. From the oscillator, he absorbed the ability to indicate potential divergence. From a trend indicator, it shows us the direction and strength of the trend.

I think that you do not need to introduce this indicator, because it has long been known to all traders. This indicator has been used on the stock exchange for many years, while being an oscillator in its structure, it shows divergences in the market quite well. Now, let's talk in more detail and substantively about how to use our approach in practice.

Usage

Now I want to tell you about the approach I propose. We will use a five-minute interval for work. However, we will use options with an expiration time of 50-60 minutes. The fact is that in this way we will give the price some space.

That is, our forecast as a whole may turn out to be correct, but if we give too little time for expiration, then the price simply may not reach our target, so we use a higher expiration. As for the underlying assets, there are no restrictions, because divergence works on all intervals, all assets and all markets.

So, we open the M5 interval, set the standard MACD, and this completes the preparation of our working chart.

Now we are waiting for a potential divergence. If the indicator renews the maximum, but the market does not, then we consider vice versa. I understand that in words it is quite difficult, therefore, let's look at an example with you.

Here we see an example of a good divergence that would give us the opportunity to buy a call option. First of all, we can see that the market has updated its low, but the MACD indicator has not updated the low at the same moment, and a new low has appeared above the previous one. In total, we have a potential divergence, which has worked out very well. As I said, we buy an option for 50-60 minutes.

Actually, these are the simple rules. I think that a beginner will not even have any special problems with this. Right off the bat, I want to tell you that divergence does not appear in the market very often, even if you use small intervals. For example, on the M5 interval, on average, you can see 1 divergence per day if you use the MACD.

But I don't think it will be that straight big problem, especially if you use multiple assets. For example, if you use all 6 major currency pairs in trading, then you will have an average of 3-6 signals per day, which is quite enough.

conclusions

What I told you is a fairly simple working approach, on the basis of which you can create your own personal trading system. Remember, you do not need to complicate your trading in order to achieve a result. Moreover, you need to make it as simple and understandable as possible for you. Well, I will say goodbye, and I wish you good luck in such a difficult task as trading!

This trading technique can be attributed to the simplest indicator approaches to market forecasting - it is built on one well-known Moving Average indicator, configured to determine short-term changes in the value of an asset. It is no coincidence that due to its reliability in professional circles, this system is called working strategy for binary options for 60 seconds, let's look at the details in more detail.

In other words, the MA Wave tactic is designed not only for trading with turbo options, but also for successful scalping. The Moving Average indicator is perhaps the first technical means, which the trader learns about when starting financial trading.

And this is not surprising, because the moving average is not only the most versatile trend indicator, but also the main base of many tools. automatic analysis market.

The indicator algorithm is based on the principle of calculating the average asset price taken over the selected period (the last 14 candles by default). The trader receives one moving average on the asset chart, which displays the current direction of the trend, its rollbacks and global reversals.

Depending on how long the evaluation period is set, the moving average can be used for all sorts of purposes. So in this system, MA is used for intraday scalping.

System parameters:

• Difficulty level - me;
• Chart timeframe – М1, 30 seconds;
• Type of options - turbo options;
• Suitable use time is from 9 am to 18 pm Moscow time;
• Assets for trading - any trading instruments.

To apply the technique, the MA indicator should be applied to a price chart with a 1-minute timeframe, while in the settings you should set the moving period parameter to 15. The Binomo broker platform allows you to easily set up the quotes chart accordingly and get the following markup:

As we can see, the red smoothed MA moves on the chart, moving either higher or lower than the value of the asset - it is this regular behavior of the technical indicator that is the basis for the operation of this system.

Trading signals and trade rules for MA Wave

The principle of trading using strategy signals is very simple - a trader needs to select an underlying asset with a current pronounced trend and place bets on the exit of quotes from short-term corrective rollbacks according to the following signals:
For CALL options:

• on an uptrend, the quotes broke through the MA moving from below upwards;
• the price candle closed above the red MA.

A contract with a quote growth forecast should be executed at the opening of a new candlestick that appeared in the same direction as the previous signal candlestick:

For PUT options:

• on a downtrend, the quotes broke through the MA moving from top to bottom;
• the price candle closed below the red MA.

A contract with a quotes decline forecast should be executed at the opening of a new candlestick that appeared in the same direction as the previous signal candlestick:

It is necessary to make entries into the market only in the direction of the general trend, which will allow you to avoid losing positions.

pros

First of all, the MA Wave technique is the simplest tool for making short-term option bets in scalping mode, which means it can be easily used by novice traders. Subject to all application rules, the efficiency of the system reaches 85%, and the cyclicity of trading signals with increased volatility is up to 8 per hour, so it can be used to accelerate the deposit.

Minuses

The technique will not work on sideways trends or at times when the asset market is “feverish” – you should only work on a moderate trend, where the asset price rolls back to short-term corrections during fluctuations.

Expiration and money management

Using the trading tactics on the 1-minute timeframe (the safest time frame), the expiration time for executed contracts should be set to 60 seconds.

However, with the same expiration date, it is allowed to use this technique on the 30s timeframe, which will improve the cyclicity of trading signals and the dynamics of trading. It all depends on the skills and preferences of the player.

Since scalping is considered the most dangerous trading mode, it is recommended to draw up contracts for a small amount. With a large capital, the maximum amount should be limited to 2% -3% of the deposit volume, and with the initial size of the deposit account, the bet amount should be set to the minimum possible (Binomo has a minimum option of $1).

In this risk management mode, you will exclude a deep drawdown in case of a negative result and will be able to steadily increase the deposit, receiving profitable options.

It is quite difficult to start making money on binary options, especially if you are dealing with stock trading for the first time. To make a profit, a trader must be able to analyze the situation, determine the moments for entry, and so on. It's almost impossible to learn this on your own. However, there are strategies to help with this. We will introduce you to one of them right now.

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The first one, with a period of 5, will be colored red. The second - in blue (period 10). Let's make the third line green and set the period to 15. It's also important that the method of all three lines be set to Exponential (that is, EMA).

Now let's deal with the Stochastic Oscillator. Here it is even easier, since you will have to apply the indicator only once. When choosing, we set the parameters 6,7,3.

After doing these simple manipulations, your chart will look like this.

This is what the “Waterfall” looks like in the MT4 terminal. You can also use online charts or charts of brokers, which, if they provide the ability to use indicators. For example, IQ Option):

Or in Olymp trade:

Expiration dates, timeframes and eligible assets

For trading with the waterfall strategy, we recommend choosing an expiration time of 15 minutes, respectively, the candle timeframe must be chosen from M5. Both indicators can be proportionally increased. For example, when concluding transactions for 1.5–2 hours, we select the duration of a candle for 30 minutes (M30).

It is preferable to use only currency pairs for trading with this strategy, and only during the European or American session, when their volatility is especially high.

Deal opening rules

Now let's analyze when Stochastic and EMA signal us that it's time to enter a trade. Let's start with the option up.

In fact, the conditions for entering are absolutely simple, so even beginners should not get any confusion.

In the screenshot we have shown one of the examples. The candle, which is highlighted with a red vertical stripe, is a signal that indicates that you need to prepare.

The first is the crossover of the moving averages. First, the MA with a period of 5 should break through the line with a period of 10. And after the Moving Average with a period of 15, the average should be broken with a value of 10. This is exactly what you see in the screenshot. However, this condition is not enough. So let's move on to the second point.

Keep an eye on the Stochastic oscillator. If its lines are pointing up (even if it is close to the overbought zone), we buy a bull option with an expiration time of 15 minutes. However, before that, you should wait for the closing of the candle on which the signal appeared. As you can see, in 15 minutes we would have received our profit.

A down trade is concluded with opposite signals.

Accordingly, the following conditions must be met:

• The lines should cross each other in the same order as when making a deal for an increase, but only go down;
• The lines of the Stochastic indicator are also directed downwards.

Following these 2 points, you can get almost regular profit.

An example of a deal with a broker

We discussed all the subtleties and nuances. Now let's show the effectiveness of the strategy in practice. Certainly, one successful deal cannot be judged. However, you can always test it yourself.

The 5 minute chart shows the EURUSD currency pair. We see that a signal is being formed to buy a Put option. Well, let's not doubt and trust. We go to the broker's trading platform, select the desired asset, set the investment amount and the expiration time of 15 minutes. As soon as the candle closes on the chart, we open a trade.

Now you can watch other assets waiting for a signal, or take a break from the monitor and moving averages.

Over time, we take the profit. We see that this deal turned out to be quite risky and we were at a loss for almost all the allotted time, but at the end of the "Waterfall" did not let us down and we got our profit.

The Waterfall strategy really works. However, do not forget about discipline. Do not enter into more trades than you planned and do not invest in trades more than 2% of the deposit amount at a time.

Of the many strategies, only a few really make a profit, so let's get straight to the facts. you can see results using this method, and in this topic I demonstrate the withdrawal of profits received in the process of trading according to the strategy, which I will discuss below.

This is a working strategy for binary options, which is an author's system designed for trading turbo options with a 1 minute expiration period. Like any system, it has its pros and cons, which I will now introduce you to.

Advantages of a working strategy:

• it is really profitable;
• no specific assets required;
• turbo options popular among brokerage companies will be required.

The disadvantages of this technique:

• does not give freebies, you will need to work;
• not all brokers will be able to trade (details below);

Each trader, probably, can add some more pluses and minuses on his own behalf, but they will obviously be of a subjective nature. Now on to the description. working strategy for binary options trading.

Working strategy for binary options - theoretical background

First, a little theory, which is indispensable if you try to describe the very principle on which the this system. Most of the time the market is in equilibrium, that is, the balance of forces (buyers and sellers) is maintained. If the "mood of the market" changes, then there is an advantage in one direction, for example, if the value of the asset increases, then there are more buyers and the market goes up.

At the same time, if the market is in equilibrium, but a large player appears with a large order, then there is a short-term imbalance, which is quickly eliminated. Why is this happening? Imagine that there is a large buyer in the market who buys

all counter orders at the current market price, then at a price that was less profitable (slightly more expensive), but this volume is not enough for him. In such a situation, we see a sharp price jump on the chart, which means that all counter volumes are bought out at several prices at once.

What happens next? A large buyer satisfies his need by buying a large total volume of opposite positions, and the market price has risen. Then there is a sharp increase in the number of orders for sale, because the price has risen and it has become profitable to close positions on it. Naturally, an increase in the total volume of sales drives the price down, that is, back to the levels at which a large buyer appeared.

The entire described process takes place in a matter of tens of seconds. During this time, we can make very good money using exactly binary options, and not some other trading instruments. What is the attraction of such cases for us? The fact that we can catch the moment when the price jumps out of its equilibrium price corridor and apply a working strategy.

A sharp unreasonable price jump is most likely caused by the appearance of a strong player on the market with large volumes. In this case, the probability of a quick return of the price to the previous positions is high, which is due to the behavior of the bidders, which was already mentioned above.

Description of the working strategy of the binary options market

Let's start with what is required to use this system. Firstly, you need a broker who quickly and accurately executes the speculator's orders, otherwise nothing will work. Imagine that the price jumped up, you click on the “Lower” option purchase button, but a second passes, the market falls down and you have a deal not at the price that you needed, but at a lower one.

Each binary option must be purchased very quickly and exactly at the price that we see when it clicks on the deal button. Of the many companies where I tried to trade using this working strategy, in at its best The following brokers came up:

• 24option
• uTrader

In my opinion, 24option has the fastest terminal, followed by uTrader. Other options did not please at all, however, the Binomo terminal seems to be still good, and it is the most affordable of all the listed options (accounts from $10).

Secondly, all transactions must be 60 seconds long (short-term, turbo options), and EUR/USD can be used as an asset to start with. Personally, I only trade on this currency pair, but I know for sure that many traders already use the system on other assets.

To begin with, we identify the equilibrium state of the market, which can be expressed in three forms:

1. lateral price movement (flat);
2. smooth market growth;
3. gradual price reduction.

If the price moves sideways, then this indicates an approximate equality of buyers and sellers. If the price moves up or down, then there is a gradual change in the equilibrium state. Any of the above situations is a signal for a trader about readiness, now he will need to wait for a sharp "knocking out" of the price from the trend.

As soon as the price sharply jumps out of its trajectory on the chart, we should immediately buy a binary option for 1 minute in the direction from which the shift occurred, as shown in this illustration:

One minute is quite enough in most cases for the application of a major player to be completely satisfied and the price then returned back. If you try to work with options for 30 seconds, then there may not be enough time for bidders to " returned"The market price back to the original positions. A longer period than 1 minute is also not very good, because the movement created by a major player has already been worked out and it is not known what the circumstances will be on the market.

The trading strategy is absolutely working for one minute binary options, I have been using it for a long time. It will be necessary to get used to the style of trading, to adapt to identify market situations when the price moves smoothly in order to catch the moment of jumping out. I can say that the time and effort spent on mastering the system will still pay off in full.