In this article we’ll try to explain how to use double red strategy in binary options trading.
In binary operations strategies are an important factor for success in investment. Using proper knowledge about trading and using tactics right investment can increase profits and minimize losses.
In this case try a strategy that is based on scalping techniques and provides very consistent results.
But beware, is also considered a risky strategy, so I would not recommend that any novice investor would make use of it.
As I said this strategy is designed for more experienced traders, so abuse it will be a responsibility of whoever decides to implement it. From here I can only invite you to ensure that those qualified to bring this strategy without involving an unreasonable risk to your operations.
Warnings aside let’s see what exactly this investment strategy.
What is the tactic Double Red?
Mainly Double Red strategy is based on support and resistance levels as well as price action. It is a tactic retractor for short-term operations.
How to use the system?
To implement this strategy is to do this in binary operations of Above / Below guy with short maturities, ideally not exceeding 15 minutes in length. This tactic is also very usable for 60 seconds Express operations, although it should be faster to hunt the best business opportunities.
Before performing the following strategy is important to identify a financial asset whose price has shown a defined range of movement in the market, leaving very clear levels of support and resistance. To do this we must make use of a price chart, preferably with a time frame of 5 minutes to make it more effective.
During the observation will have to wait for the asset price reaches the resistance level and then wait for it to happen that causes the bounce motion a new downtrend. Then if the same procedure is repeated it will be time to act by opening a position. Obviously, given these market circumstances have to bet on a put option if we intend to hit.
How say warning alerts generated by this tactic usually have a maximum validity of 60 minutes. And now, I will explain in a little more detail the procedure to implement the strategy of Double Network step by step:
- Identify the active : Should we identify a financial asset whose price has remained well defined for a time. With the graphics is very easy to analyze price fluctuations of assets and set levels of support and resistance.
- Find the resistance level: Once picked the right asset should be focusing our attention to locate the most relevant level of resistance. To achieve this it will be necessary to use price charts 5 minutes.
- Wait until the price reaches the resistance level : After locating this level will have to wait for the price of the asset reaches you. Must reach, rebound and bearish candles form two clearly visible in the graph. Make sure that the second candle ends below the closing price of the first candle.
- With the clear signal is the time to act : When will we see clear when opening the position. In this case we are talking about type PUT options. The maturity period must be less than or equal to 15 minutes.
As can be seen, the theory of this strategy is quite simple although the practice is perhaps what becomes more difficult at times. In any case, yes well we deal with graphs and analysis we should not have any problems.
- Avoid risk more than 2% of your account balance on each trade inverter. Due to the level of risk exposure is not recommended anymore.
- The strategy allows for Double Red steady gains but be able to make quick decisions, it is effective in very short time frames.
- Experience in the analysis of markets and the use of price charts. To use this tactic is useful to know to interpret patterns candles.
- One last tip: Make use of demo accounts to practice safe strategy.
Finally I wanted to recommend you take advantage of a platform of binary operations, our team is definitely the best, read the review of 24option and decide if you would like to join. It certainly is a perfect platform to test this strategy double red.