Currently, there is a generous amount of different binary strategies in order trade binary options profitable. But even the beginners can use some of them and be successful in the financial markets. Such strategies do not require special knowledge in the technical analysis, and it is very simple to work with them. One of such strategies is the binary options’ Triple touch strategy.
Binary options triple touch strategy: description
In fact, this trading strategy is very simple, and while we will describe it, readers will make sure of it. In order to use such strategy, it is necessary to have the basic knowledge of the technical analysis. It will provide with the skill to draw the trend’s line on a chart.
How is it done? Very simple! In order to draw the trend’s line of the ascending movement, it is necessary to draw lines on the minimums of prices. Usually, it can be done when there are at least two lower extreme points. Let’s look at the picture:
On the screenshot you can see the trend line that has been drawn. The price touches it several times and moves up constantly.
Why the binary options’ triple touch strategy is named exactly this way? Everything is pretty simple: a trader has to buy a contract when the third touch occurs. Why this can’t be done earlier, for example, with the second touch? This is because the second touch shows that minimums become higher, in other words, the second touch is the some kind of indicator of the ascending trend.
The significant benefit of this strategy is a fact that an appearance of these trends on a chart occurs pretty often. In order to make sure of it, it is needed to view the history of quotes on each underlying asset, especially those which are traded in Forex.
Binary options triple touch strategy: trading signals
We in the previous part of this article we have considered description of this strategy. But this is not enough for the profitable trade with it. Of course, now we are lacking trading signals, which are the most valuable results of working with any system.
If you look at the chart attentively, you will notice that price rebounds from the trend line several times. Trading signal for the purchase of the Call option appears right at the time when the price touches the trend line and rebounds from it at the third time. Some professionals recommend waiting not only until the price rebounds from the trend line, but also until the candlestick closes higher than the trend line. In this case, entry to the market and the Call option purchase will be more reliable.
This strategy works the same way within the descending trend too. In order to buy the Put option, it is necessary to draw the trend line at least on two maximums. When the price touches the trend line the third time, rebounds from it, and fixates lower, you may buy the respective contract. At the same time, indicators of the technical analysis are not used with this strategy, and it simplifies the trader’s work substantially because there is no necessity to study additional material.
This strategy will perfectly suit even those who managed to familiarize with only the basics of the technical analysis. In addition, given the frequent appearance of such situation on a chart, you can apply this strategy almost every day.
Therefore, binary options’ Triple touch strategy is one of the simplest profitable systems that provides pretty qualitative trading signals.