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How to Use
Binary Options Strategies
The game plan of professionals
explained for beginners!
 Hello Traders!

Welcome to BinaryOnlines ebook aimed at introducing the top

8 trading strategies for binary options. In this ebook, you will
learn the basics of trading the binary way, how it works and
unlocking the potential of charts to better inform your trades.

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 TABLE OF CONTENTS

01. An Introduction to Binary Options ................................................ Page 3

02. How It Works ........................................................................................ Page 4

03. Why Binary Options Are Becoming Increasingly Popular .... Page 6

04. Unlocking The Potential of Charting ........................................... Page 8

05. The Importance of Trading Strategies ....................................... Page 10

06. Trend Signal Strategy ...................................................................... Page 12

07. Tunnel Strategy .................................................................................. Page 13

08. Fractal Strategy ................................................................................. Page 14

09. Fishing Strip Strategy ....................................................................... Page 16

10. Zigzag Strategy ................................................................................... Page 17

11. T-Chaser Strategy .............................................................................. Page 19

12. Fibo Trap Strategy .............................................................................. Page 21

13. Zoom In Strategy ................................................................................ Page 23

14. Choosing The Best Strategy ........................................................... Page 25

Lets get started, shall we?

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 AN INTRODUCTION TO
BINARY OPTIONS

Binary options, also known as xed return options, are

trading products that allow investors to predict the

01 future price movements of assets through a trading

platform. In general, the current price of the asset is
shown and traders are asked to speculate if the price
will be higher or lower at a future time.

This future time is called the Expiry Time and the market price of the asset
when the binary option expires is termed the Expiry Rate. In order for a
trade to be successful, the price of the asset at Expiry Time should be in
agreement with the direction you originally anticipated.

When trading with binary options, the potential payout is also known
ahead of time. It is expressed as a percentage of the investment amount.
For example, lets say the trading platform states a potential payout
percentage of 80%. If your assessment is correct at Expiry Time, you
receive 80% of your invested amount plus the initial investment.

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 HOW IT WORKS

Binary options provide an avenue for investors to trade

assets across stocks, currencies, commodities and

02 indices. All you have to do is correctly predict whether

the price of the asset will go up or down by Expiry Time.
To make a trade, simply follow the 4 steps below:

1. Choose an asset
2. Choose an Expiry Time
3. Choose an investment amount
4. And decide whether you want to place a Call or Put option.

1 2 3

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For example, lets say USD/JPY is trading at 115.428 at 10:50 GMT. A trader
thinks that the price of the asset will drop in the coming hours so he
places a Put option with the following parameters:

Investment amount: Expiry Time: Potential

$100 19:30 GMT payout percentage:
85%

If the price of the asset drops below 115.428 by the predetermined Expiry
Time, the trade is In-The-Money and the trader earns the payout of $185.
Conversely, if the price of the asset goes up, the trader loses his
investment.

Want to learn more about the basics of binary options trading?

Check out this awesome article entitled Binary Options for Beginners.

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 WHY BINARY OPTIONS
ARE BECOMING INCREASINGLY
POPULAR

03
As you can see from the example above, binary options
offer many advantages over the more conventional
methods of trading. For example,

1. Binary options are simpler to trade with than other

instruments.

This is because, with binary options, the payout depends entirely on the
direction, and not the actual price value, of the underlying asset. The
option holder has no further investment decisions to make.

2. You can expect faster outcomes.

In the binary options industry, you can get in and out of markets in a
matter of hours. This is because binary options offer contracts with
short-term as well as long-term durations ranging from 60 seconds to
1 year.

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3. Its less risky than conventional trading.

With binary options, risk and reward are also predetermined at the time
an investor enters in a trade. Traditional options have no such
boundaries, which means that your loss can be limitless. This is
because the payout will depend on the actual price of the underlying
asset among other factors.

4. No broker fees.

Unlike conventional trading, there are no fees or commissions

associated with trading the binary way. Brokers make their money from
the difference between what they pay out in winning trades and what
they collect when traders lose.

5. Trade assets across all 4 asset classes and one more.

Finally, whether you are a Jack of all trades or you have a preference
for an asset class, with binary options, you can trade assets across all 4
asset classes as well as correlated asset pairs. Usually assets are
available for trading during the daytime business hours of the country
of origin.

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 UNLOCKING
THE POTENTIAL OF CHARTING

Spot trends in the nancial market and you could be on

04 a winning streak. To do this, you need to use charts.

After all, at any point in time, an asset will either be
trending up or down.

By understanding what affects the value of a particular asset, you can

predict its future course by nding patterns in historical price movements.
Enter charts such as support and resistance levels, moving averages and
RSI.

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For example, the moving average of an asset gives you a representation of
what its price is doing over a period of time. Lets consider the 10-day and
50-day moving average of the Dow Jones Industrial Average. When the
shorter moving average crosses the longer average on its way up, this is a
buying opportunity.

Conversely, when a 10-day moving average crosses a 50-day moving

average on its way down, this is a selling opportunity.

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 THE IMPORTANCE
OF TRADING STRATEGIES

As a trader, you can utilize technical analysis (or charts

05
if you will) to help you forecast the future directional
movements of any asset of interest. In doing so, you
obtain a complete picture of the trading history of the
asset.

Technical analysis is also structured on the idea that history has a

powerful inclination to repeat itself by generating price patterns
possessing predictable structures. Your primary goal here is to discover
new high quality trading prospects.

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After all, one of the most important aspects when trading binary options is
to know when to open a position. Even though trading is available 24 hours
a day and 7 days a week, not every hour or minute is worth trading.

This underlines the importance of having a trading strategy. It helps you

identify when to trade, what to trade and how to trade.

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 TREND SIGNAL STRATEGY

In the trend signal strategy, we look for a candlestick

that indicates return to a previous trend following a

06
correction. This strategy is appropriate for timeframes
of 15 minutes and higher, where the bigger the
timeframe, the higher the level of precision. This
strategy is suitable for all currency pairs, commodities,
indices and stocks.

A signal for entering a Call position is triggered when an upwards trend

followed by a correction has been identied and a long bullish candlestick
appears whose length includes the 3 previous bearish candlesticks.

Conversely, a signal for entering a Put position is triggered when a

downwards trend followed by a correction has been identied and a long
bearish candlestick appears whose length includes the 3 preceding bullish
candlesticks.

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 TUNNEL STRATEGY

In this strategy, we are looking for a break in a tunnel

07
pattern. The strategy is suitable for timeframes of 4
hours or higher. It is suitable for all currency pairs,
commodities, indices and stocks.

In binary options, a tunnel is identied when several peaks and troughs

form within a uniform trend. A break in a tunnel is signaled when the rate
exceeds the tunnel value by 30 pips. A Call position should be entered
when the tunnel is in a downtrend and the tunnel is broken in an upwards
direction.

Conversely, a Put position should be entered when the tunnel is in an

uptrend and the tunnel is broken in a downwards direction.

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 FRACTAL STRATEGY

In the fractal strategy, we are looking for a

combination of averages and fractals which indicate
the possibility of a future trend. This strategy is suited

08 for timeframes of 15 minutes and up, where the longer

the timeframe, the higher the level of precision. It is
suitable for all currency pairs , commodities, indices
and stocks. Indicators used include Alligator and
fractals.

A signal to enter the market is received when the following conditions are
met:

A deeply non-trending market characterised by a crossing of the 3

average lines of the Alligator Indicator.

The values of a fractal pair converge more than the pair that
preceded them.

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Enter a Call position when a candlestick appears, which is over the fractal
rate of the peak by 30 pips.

Conversely, enter a Put position when a candlestick appears, which is

under the fractal rate of the trough by 30 pips.

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 FISHING STRIP STRATEGY

The shing strip strategy involves looking for turning

points. These points indicate the possibility of a change
in a trend direction and enables traders to act

09 accordingly. It is suited for timeframes of 15 minutes

and up, where the bigger the timeframe, the higher the
level of precision. The strategy is suitable for all
currency pairs, indices, stocks and commodities. The
indicator used is Bollinger Bands.

A trading signal to place a Call option is received when a candlestick

closes below the shing strip and the next candlestick closes within the
strip. The trade should be entered at the start of the third candlestick.

Conversely, the preliminary signal to place a Put option is received when a

candlestick closes above the shing strip and the following candlestick
closes within the strip. The position should be entered at the start of the
third candlestick.

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 ZIGZAG STRATEGY

The purpose of the zigzag breaker strategy is to identify,

10
using indicators, cases where the previous peak or
trough has been broken out so traders can take
advantage of the momentum that is created following
the breakout.

Because this strategy is a momentum strategy, it is particularly suited for

1-hour charts. The best currency pairs to trade with this strategy include
GBP/USD and GBP/JPY. The indicators used include Zigzag and the
Commodity Channel Index.

To use the zigzag strategy, enter a Call position when a break of the
previous zigzag peak has occurred and, simultaneously, a CCI value of
over 100 is received.

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Conversely, enter a Put position when the last zigzag trough is breached
and, simultaneously, a CCI value lower than -100 is received. The trades
entry rate will be a break of one pip from the most extreme rate reached
within the zigzag.

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 T-CHASER STRATEGY

In the T-Chaser Strategy, the goal is to identify the start

11
of a new trend and ride it as far as possible. It is
suitable for time frames of 15 minutes and up, where
the bigger the time frame, the higher the level of
precision.

The strategy can be used to analyze all currency pairs, stocks, indices and
commodities. The indicators used include 4 exponential moving averages
(8, 12, 24 and 72), fractals and the Commodity Channel Index.

To trade with the strategy, place a Call option when the following 3
conditions are met:
1. The fast 8 moving average is above the short 12 moving average, which
in turn is above the medium 24 moving average.

2. The rate is above the long 72 moving average.

3. The Commodity Channel Index indicator is above 150.

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Conversely, traders should place a Put option when:

1. The fast 8 moving average is below the short 12 moving average, which
in turn is below the medium 24 moving average.

2. The rate is below the 72 moving average.

3. The Commodity Channel Index indicator is below -150.

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 FIBO TRAP STRATEGY

The Fibo Trap Strategy is a reverse strategy whose goal

is to identify the end of a correction so that traders can

12 enter positions immediately when a new trend begins.

The strategy is suitable for timeframes of 15 minutes
and up, where the bigger the timeframe, the higher the
level of precision.

The strategy can be used with all currency pairs, commodities, indices and
stocks. The indicators used are Fibonacci (61.8), Relative Strength Index
and the Stochastic Oscillator.

To use this strategy, place a Call option when 3 conditions are met:

1. The rate is correcting a previous trend in a downwards direction.

2. A candlestick appears that goes below the 61.8% Fibonacci level but then
reverses to close above that level.

3. The stochastic index is under the 50 line but displays a crossing of its
averages.

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Conversely, traders should place a Put option when the following
conditions are met:

1. The rate is correcting a previous trend in an upwards direction.

2. A candlestick appears that goes beyond the 61.8% Fibonacci level but
reverses to close below that level.

3. The stochastic index is above the 50 line and displays a crossing of its
averages.

To determine a favorable entry point, look out for a new candlestick that
opens following the candlestick that triggered the signal . Place a Call
option when a candlestick closes where the RSI is in the overbought area,
that is, above 70. Place a Put option when a candlestick closes where the
RSI is the oversold area, that is, below 30.

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 ZOOM IN STRATEGY

The Zoom In Strategy is used to identify a new minor

13 trend and properly time an entry point.This involves a 4

hour graph to identify the minor trend and a 15 minute
graph to choose the best time to enter a position.

The strategy is suited for all currency pairs and main indices. The
indicators used are 2 exponential moving averages (5 and 10), the relative
strength index and the stochastic index.

With this strategy, a signal to place a Call option appears when, in a 4

hour chart, the 5 moving average crosses the 10 moving average in an
upward direction and the RSI is over 50 but below 70. An entry signal is
received on a 15 minute chart when the stochastic index is lower than 20
and crossing over its own lines.

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Conversely, a preliminary Put signal appears when, in a 4 hour chart, the 5
moving average crosses over the 10 moving average in a downward
direction and the RSI is below 50 but not below 30. An entry signal is
received when, on a 15 minute chart, the stochastic index is higher than 80
and crossing over its own lines.

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 CHOOSING
THE BEST TRADING STRATEGY

Well, to begin with, there is no such thing as an ultimate

14 and foolproof trading strategy. This is because not all

traders have the same knowledge and skill set when it
comes to approaching the nancial market.

With that said, using the right trading strategies can boost your
performance in the markets and catapult you into the hemisphere of the
elites.

The trick is to choose a strategy that complements your level of knowledge

and expertise. Choose a strategy with market indicators and chart
patterns that you understand and are comfortable with to avoid expensive
mistakes. Free education on market analysis is widely available on our
website and over the web in general.

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The other consideration is to use more than one trading strategy to inform
your trades. The rationale is that if you deploy only one strategy, a
breakout can rapidly convert into a fakeout, generating losses. If you use
more than one indicator and more than one strategy, you gain a wider and
more in-depth perspective of the market.

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 WELL DONE!

You have now reached the end of this ebook. We hope you enjoyed the
read. If applied correctly, the above trading strategies can help you take
your trading to the next level.

Feeling condent enough to give it a try?

Head to our trading platform

Dont have an account yet? Click here to open one.

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