The most common strategies for use with 60 Second binary options trades relate to trading along with the trend. The purpose of this article is not to tell you that fast trading along with the prevailing trend is a bad thing, but instead to tell you that there is an addition strategy for earning and that would be to cash in on reversals.
Many traders avoid trading on reversals because they can at times be difficult to predict. What this binary options strategy aims to do is allow you to avoid trying to predict a reversal and instead trade for profit immediately after one has taken place. The 30, 60, and 120 second expiry times within the Digital Options platform will provide you with all you need in order to put this strategy to use.
There are two ways to use this strategy, one being when you are already trading along with the current trend and the pause when the price is about to hit support or resistance. Once you see the hit occur, place a short expiry trade in the direction opposite of the trend direction you have been trading. The other method is basically the same, except weâ€™ll assume that you havenâ€™t been trading the trend, only monitoring it instead. Again, youâ€™d watch for the price to change directions and trade immediately.
Fast action is going to be required in order for this binary options strategy to provide you with profit, so you will need to be sitting at your computer monitoring the chart(s) of your choosing. Some knowledge of support and resistance is obviously going to be helpful, but it is possible to identify a trend within the Digital Options asset price chart and then trade the reversal the moment you see it occur.
The main benefit of this binary options strategy is that you will not need to predict the reversal, just take action as soon as it is noted. The risk is that trading too quickly could cause a loss if the price is just a bounce and not a full reversal. Should a full reversal of the trend take place and the asset start to pullback to its comfort zone, youâ€™ll be given additional opportunities to trade along with the new trend. As simple as this strategy is, it can provide you with plenty of easy trade opportunities throughout the day.