Advanced Swing Digital Options Strategy

Advanced Swing Digital Options Strategy

The Advanced Swing Strategy is for digital options traders who have been trading for long enough to feel comfortable with advanced analysis. The strategy is centered around support and resistance breakouts within 15-minute charts. Signals are extracted from charts which contain 15 candles, with support and resistance lines each being marked on the extended charts. Initially designed for Forex trading, this strategy can in fact be used along with any asset.

There are four steps to this strategy. The first points out how to uncover signals and where to pull them from. Step two covers the sizing of your trade positions. The third provides the details of profit targets, something which is actually not of utmost importance. Step four covers strategy use and other factors.

What you’ll be trading is short-term breaks of support and resistance levels. To locate these breaks, you will need to evaluate three different time periods. The first is 4-hours. This establishes the primary trend and support and resistance. The goal is to link at least three points. After this, repeat the process using a one-hour chart and then drop down to 15-minutes. With the charts set up, hold out for the signal. Set your charts before the market opens so you’ll be ready to take fast action.

Signals are generated when the price breaks above or below support or resistance. The break relies upon a close over or under your selected line. A basic break without any close should be considered a false signal until it is verified. Once the close occurs, open your broker. For breaks underneath support, trade the Put. For breaks above, trade the Call.

Targets can be used to establish whether to go with hourly or daily positions. The closer the target price is to the entry point, the shorter the expiry should be. If the target appears in the 15-minute chart, go with an expiry of one hour or less. If it appears on the one/four hour charts, consider full day expiry periods. Avoid trading when market sentiment is causing too much volatility, or during times when the market is flat. The signals will be clearest under normal market conditions.

This digital options strategy offers fantastic signals for short-term trades using various expiration times. One caution would be that at least some trading experience is necessary. Beginner traders could struggle when trading with short-term breaks. Such trades equate to trading against the prevailing trend, and this is an action best avoided by novice traders.

2 Responses to “Advanced Swing Digital Options Strategy”

Leave a Comment

Contact Us - Terms & Conditions - About Us - Privacy Policy - Cookie Policy
General Risk Warning: Trading Binary Options carries a high level of risk and can result in the loss of your investment. As such, Binary Options may not be appropriate for you. You should not invest money that you cannot afford to lose. Before deciding to trade, you should carefully consider your investment objectives, level of experience and risk tolerance. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to Binary Options or (b) any direct, indirect, special, consequential or incidental damages whatsoever.
en English