The Forex Fractal is related to the
consolidation and channeling of price, which is observed by most of
the traders in the forex market. In fact, the major market players
keep a keen eye on channels’ boundaries. As a result,
support/resistance levels appear on a trading chart.
In literal terms, Fractal means a
geometric formation that recurs at a smaller level so that
asymmetrical patterns and surfaces can be created, which cannot be
shown by traditional geometry. It is just like Fibonacci patterns
that can be seen in the arts, nature and even in trading. Many a
times when a trader selects any pattern on a 5 minute forex chart,
he can see the same pattern forming on higher time frames. Mostly,
these trends or patterns lie within a same span of time on these
higher frames of time.
The Overlapping Fibonacci is
usually the next step for traders after they have already used the
Fibonacci retracement signals in forex trading many times. In this
strategy, traders use the confluence of Fibonacci extensions or
retracements with other indicators, such as, pivot points, and
resistance or support level etc.
The idea of using overlapping
Fibonacci strategy is quite exhilarating because this is exactly
what you need in forex trading. In this strategy, a trader gets to
trade two strong Fibonacci points at a known resistance and support
region, and will probably get a usable reaction from it. Traders
find it very simple to use and therefore, they prefer to use it
instead of any other trading strategy.
In order to understand it more
clearly, let’s take an example of a chart that will be explaining
the overlapping Fibonacci patterns in detail. A trader can use any
chart that shows a reasonable highs and lows of prices in
combination with other moderate level retracements that appear
throughout the way and form Fibonacci signals on the chart.
In a forex dual stochastic trade,
slow and fast stochastic signals are combined with one another and
then traders look for the right time when the signals reach the
opposite extremes. The points at 80 percent and 20 percent are
usually considered to be the extreme levels. Another measure used
for this strategy is the 20 EMA.
In the following examples, you can
see the combination of fast and slow Stochastics in one window at
the end of the chart. It is very easy to use this strategy and in
order to use it correctly, you should start by placing one of the
two stochastic signals on the chart and then move the next signal
from the navigator window and put it right above the first
There are certain rules that a
forex trader should remember while using this strategy, and these
rules are as follows:
He should wait till the price
reaches the point where it shows strong trending.
Make sure that Stochastic signals
are at opposite extremes
In order to confirm the entry,
find a suitable candle pattern that gives an indication of reversal
after a brief retracement to the 20 EMA.
The most suitable price action
strategy in Forex trading is the Bladerunner strategy, because this
strategy uses the price actions in order to find entries. Usually
traders use it in combination with round numbers, candlesticks,
pivot points, and resistance and support level.
Moreover, you do not need to have
any indicators, such as, RSI, MACD, and Stochastics to use the
Bladerunner strategy. These indicators are also known as the
off-chart indicators. However, you can use your favourite
indicators if you are confident about them. For example, some
people trade this strategy along with the Fibonacci levels, which
is completely fine as long as you are comfortable with it.
This strategy is used to enter the
trade by confluencing the daily pivot points and Fibonacci
retracements. Some of the favorable parameters used by the traders
are 38 percent or 50 percent Fibonacci points that are in
confluence with the daily pivots. Like any other free forex trading
strategy, this strategy can be interpreted in many different ways
as there are many variations to it. However, experienced traders
use the daily Fibonacci pivot strategy to increase the chances of
opportunities that comes with relaxing the trade entry requirements
in a following ways:
Find a trade entry of a currency
pair, which shows that the average true range of previous 5 days
exceeds the trading sessions of the past few days.
And draw fibs at the beginning of
the current session, from the last few days low to high in case the
price is currently more than the current central pivot point. Or,
from high to low of the last few days if the current price is lower
than the current central pivot level.
Find a confluence of daily central
pivot level and Fibonacci retracement points.
Once the price is identified after
retracing to the confluence, a trader enters the trade or wait for
the confirmed candle signals in order to confluence before the
entry. Although, entering the trade before a confirmed signal is
very risky, yet, higher risk is associated with higher
Range trading holds a bit of risk
when it comes to trading stocks. The risk is involved especially if
a trader, with the help of powerful support, comes across a stock.
For trading in a range-trading market, you should point out
price-range which is being traded within by security. It involves
regulating the level of support. This level is a specific price
which is touched by security that has not gone through. Another
task you have to do is regulating a level of resistance. This level
is a price-range that remains above the trading-range. Just reach
out both levels twice. It is a strategy to boost up your
confidence. You should reach out the levels a good number of times
and build up a trust that they will work well in coming times.
Now making money from it is very
simple. You should buy at the level of support. Then you should
sell at the other level. Make a sale short at the level of
resistance. Then wait and buy to cover at the moment the price
lowers to the level of support. Traders should keep their eyes open
for breakouts. Leave the price to reach out the line of support or
resistance. Make an order of buy stop/sell stop type at a distance
from the line. It will be pushed when the price returns. It is a
mean of protection against breakout.
Binary option trading has become
very popular among online traders due to its flexibility. Everyone
can trade easily because the requirements are very few. There are
various ready-to-implement strategies that are quick solutions to
trading problems, but the real success can only be achieved by
following a customized strategy that suits your skills and
Cook the best trading
Below is the step-by-step guide on
how you can build yourself the most successful trading strategy
without much trouble. It is not compulsory to use the following
guidelines, but it can help if you are unsure what to do.
The sudden rise in fame of binary
option trading in just a few years and all the success everyone
dreams of getting with this business sometimes leads even
experienced traders to lose focus. Sticking with your trading plan
and strategy is very vital to remain on-course and to keep
receiving profits for a long time.
Unveiling the Parabolic
Trading strategies are the best
ways to ensure you get the most out of your binary option business.
Parabolic strategy is not a new one but most of the traders are
unaware of it. The strategy was earlier successfully used in other
financial investment ventures and it was adapted by experienced
analysts for binary option trading.
The financial markets evolve a
little every year. Each year, there are new global economic
developments, new treaties, new resolutions, new agreements that
widely affect the markets. To remain consistently successful with
online trading for many years, at the start of each year or before
the year begins, it is very wise to revise the trading strategies
and adjust them according to the new advancements.
Preparing for the next
As a trader, when you are preparing
to start trading in a new year, you must seek accurate answers of
some very vital queries for example,
How the next year is going to
Will the next year be good for
traders or not?
Which is the most influential
development that will affect the financial markets all the
There are some important aspects of
binary option trading that separates experienced traders from the
novices. One such aspect is the trading time. Not every time is
good for trading, but most new traders are unaware of this
Most traders know the four asset
classes available for trading: stocks, commodities, currencies and
indices. Almost all online trading platforms attract traders by
The trader can trade on multiple
The trading is available 24/7 to
These attractions are actually
real, but most new traders get the wrong idea from them. If a
platform is offering services 24/7, that doesn’t mean the trader
should trade whenever he wants.