Binary Options 5 Minute Strategy
Binary Options 5 Minute Strategy you really should know about Binary Options 5 Minute Strategy
The binary options 5 minute strategy is a very popular method used in binary options trading simply because of the fact that the entire process takes only 5 minutes. When engaging in Binary Options Trading you are simply betting on the future movement of financial underlying assets. You have to bet whether the value of the asset will go up or down. If you are able to predict the direction of the value then you will be able to gain a profit which is predetermined. This strategy is quite useful if you know what you are doing and can determine when the best time is to act based on the choices available to you. There are many 5 minute binary options strategies available online and it is important to understand their aspects if you want to make the most out of this key strategy.
If you want to understand the main concept behind the binary options 5 minute strategy, you will have to keep in mind that this is amongst the most important features that each binary options trading platform is offering with regarding to this approach. The reason this strategy is so popular is the fact that you will get some of the quickest results in the least amount of time. This is perfect for you if you prefer short term investments and quick turnarounds. The binary options 5 minute strategy method requires minimizing the amount of losses that an investor can sustain during a given trading session. Some of the more experienced traders will say that in order to control the amount of losses in a 5 minute binary options deal, you should most likely wait until the deadline is very close. The logic behind this idea is that it is easier to avoid experiencing losses when you essentially wait up to the last second of the 5 minute process. It is certainly a short window of time, but it is an effective method of maximizing your profits from trading binary options.
So how does this strategy work? The first step would be picking the asset you would like to trade. To start with your binary options 5 minute strategy you will want to watch the asset on a live chart assembled from 5 minute bars. You can go online and find a charting system if you don’t already have a real time charting platform or something similar. Use open-high-low-close chart (OHLC) bars in the settings of your 5 minute chart. An OHLC is a type of chart that is typically used to illustrate movements in the price of a financial instrument over time. Each line on the chart shows the price range over one unit of time; in this case each line will cover a period of 5 minutes. 1 bar equals 5 minutes worth of trading. You will want to look for 3 consecutive bars in the same direction. If you found 3 green bars it means you are watching a rising trend (Bullish market conditions) and would probably want to buy the call binary option for that asset so that you can join this trend. If you found 3 consecutive red bars it simply means you are viewing a decline trend (bearish market conditions) and you should probably buy the put Binary option for the same financial asset. Make sure that you also use hourly expiration dates when viewing charts and searching for a trend opportunity. If you feel comfortable with this binary options 5 minute strategy it may be something you would want to practice at and engage at.
You should note that this strategy is called binary options 5 minute strategy, but you can use the same strategy with different time frames such as 1 minute, 10 minutes, 30 minutes or any other time span that you see fit. You should make sure that the chart you are working on is suitable to your strategy, meaning it the price bars is similar to your strategy. Now all you have to do is to find an occasion at which there are 3 consecutive price bars on the same direction, once this situation is spotted you should buy the option with the same direction of those 3 bars, so if 3 bars are colored in green you would buy a CALL binary option and if the bars are colored with red you would buy the PUT binary option for that asset.
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