In its time, the market of electronic contracts attracted a lot of attention from users due to its availability and variety of trading methods. However, many of the systems existing on this type of financial exchanges may contradict the traditional rules used on stock, commodity and currency markets.
In particular, one of the peculiarities of working with binary options is that they are often traded not in the direction of the main trend, but on corrections or reversals. This peculiarity is due to the fact that transactions on the market of electronic contracts, as a rule, have a short duration.
As a result, it is not always necessary to expect significant price fluctuations for successful trading. Sometimes the initial impulse, which occurs at the reversal of the current trend or its local correction, is enough.
In this article, you will get acquainted with the Click strategy, which allows you to determine the beginning of the above-mentioned price fluctuations in a timely and highly accurate manner.
Introduction to the Click strategy
To begin with, the trading system is based on the use of two popular tools – Bollinger indicator and stochastic oscillator. These Expert Advisors are available in the terminals of most brokers, including CloseOption, which makes them very convenient to use.
Traditionally, before starting to work within any strategy, it is important to properly customize the working space. To analyze the market using the Click methodology, it is recommended to use the Japanese candlestick chart with the period M5, which will allow you to make several deals in one trading session.
When selecting assets, you should focus on instruments with high volatility, as the system discussed in this article is ineffective on sideways movements where there is no trend.
Bollinger Bands in this case will fulfill its main function – to show the trend direction and indicate the price channel. There is no need to change the parameters when installing the indicator.
In turn, Stochastic will serve as a signal for opening trades. For this purpose, its fast and slow lines should be set to values 5 and 3 respectively.
How to trade with the Click strategy?
The best signal for the start of a correction or trend reversal is when the candles go outside the Bollinger indicator. A trade is opened after the price returns to the channel, which, however, can sometimes be a late signal. That is why Stochastic is attached to the Bollinger Bands.
The signal for a CALL option occurs when the price breaks the lower boundary of the Bollinger Bands and the fast line of the Stochastic crosses the slow line below the 20 level.
The signal for a PUT option occurs when the price breaks the higher boundary of the Bollinger Bands and the fast line of the Stochastic crosses the slow line below the 70 level.
The recommended expiration is 15 minutes.
The Click trading system demonstrates high efficiency and can provide stable profits on the digital contracts market. Meanwhile, it is important to remember that no trading strategy can guarantee 100% success. Therefore, you should always keep in mind the rules of money management when making any action on the financial markets.
