support resistance binary options Strategy
In binary options trading, technical analysis is an analysis method for forecasting the direction of prices through the study of price action.
Your main goal of technical analysis should be to identifying strong support and resistance trading levels. This is the most basic skill every price action trader must have. A powerful way to draw support and resistance zones on candlestick charts is to draw Fibonacci levels.
So what are the best trading strategies for beginners and professional traders to use to find strong support and resistance levels?
In this video, I explained the correct way of plotting the best Fibonacci support and resistance levels on a candlestick chart you can use to find high-probability trade setups.
Combining these levels with FX Master Code V2 buy and sell trading signals will help you successfully trade binary options.
Binary Signals After Bounce On Support
Doing some simple technical analysis like drawing Fibonacci retracement levels between highs and lows can increase your profitability a lot. Trading buy signals after a bounce on a support levels up to a resistance level is a very good strategy to increase win rate.
In the chart below you can see EURUSD on 1-minute time frame after a bounce on a Fibonacci 50% level (drawn on higher time frame). You have 5 buy long wins and 1 sell short win.
EURUSD 1-minute chart by TradingView
Binary Signals After Bounce On Resistance
You can also draw support and resistance lines on recent connecting tops and bottom on a higher time frame (if you trade signals on 1-minute time frame you can use 5, 15-minute or 1-hour time frame to find support and resistance levels), you then trade buy signals after bounce on support and sell signals after bounce on resistance.
In the chart below you can see USDJPY on 1-minute time frame after a bounce on a resistance level (drawn on higher time frame). You have 2 buy long wins before the bounce on resistance and then 3 sell short wins after the bounce following FX Master Code V2 buy and sell signals.
USDJPY 1-minute chart by TradingView
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