Surfers often talk about “catching a wave”, and interestingly, this phrase is just as relevant in the world of trading electronic contracts. But what do water sports and financial markets have in common?
It’s quite straightforward. Just as surfers ride the waves on their boards, traders aim to catch the start of a market movement, which also has a wave-like structure, to make a profit. This tactic is particularly effective in the binary options market, where the duration of the movement is irrelevant, and profit depends on accurately predicting the direction rather than the distance the price travels.
Like surfers, traders need to “catch the wave” by buying the right contract at the right time. In this article, we’ll delve into the Binary Surfing strategy, which leverages two popular indicators found on most trading platforms, including Pocket Option. This strategy helps traders accurately determine the direction of price fluctuations to make money on market movements.
How Set Up Your Workspace for Binary Surfing Strategy?
The initial step in to all strategies is setting up the workspace. Let’s start with the chart. The authors of this article advocate for employing Japanese candlesticks or bars. Suitable assets include currency pairs, stocks, or cryptocurrencies, where typically high volatility prevails, making the “waves” we aim to catch more discernible.
The timeframe can be adjusted within the range of M5 to M15. Considering the focus on binary options, it’s prudent to retain the M5 setting to enable more transactions throughout the trading session.
Now, let’s delve into understanding the indicators signaling the onset of movement. The Binary Surfing strategy utilizes the widely-used tools Parabolic and MACD. Notably, one signifies a trend while the other functions as an oscillator. This blend is deemed optimal for any strategy.
Both indicators are highly adaptable and exhibit equal effectiveness across various timeframes. Hence, the methodology’s authors recommend retaining their default parameters.
How Trade with Binary Surfing Strategy?
The strategy utilizes the most popular signals, such as the formation of a starting point at the Parabolic and the exit of the signal line beyond the histogram at the MACD. You need to watch for specific signals.
Hence, a contract is initiated in the following scenarios:
- CALL when the MACD line exits the histogram from the negative region, coinciding with the formation of a Parabolic point below the bar.
- Conversely, PUT option is purchased when the MACD moving average crosses above the histogram in the upper region, accompanied by the formation of a Parabolic point above the candle.
Set the expiration period at 10 minutes for the M5 timeframe.
In conclusion, the Binary Surfing strategy offers a methodical approach to trading binary options, leveraging the signals provided by Parabolic and MACD indicators. Despite generating less frequent signals, the strategy’s accuracy is heightened, eliminating the need for additional systems such as Martingale. By following the established guidelines, traders can effectively capitalize on market movements and secure stable profits. This approach underscores the importance of patience, precision, and adherence to strategy in navigating the dynamic landscape of binary options trading.
