Trading on reversals is a very important skill for each binary trader. Even the cutting-edge option trading signal service won’t be profitable if the trader doesn’t have enough knowledge and practice. If you want to know how to make money on trend reversals, check this strategy.
For this method, you will need two indicators: Relative Strength Index (RSI) and Parabolic SAR (P-SAR).
Characteristics of strategy
Type of strategy: Trend.
Timespan: Any between M1-M5. We used M1, but with an increasing period of analysis, the precision also increases.
Asset: Any currency pair. The necessary demand is a fixed spread (2-3 points) and the absence of hidden fees.
Time: All Forex trading sessions.
Percentage premium option: Not less than 70-75%.
RISE-option. RSI is coming out from the oversold zone and it is pointed up. Three points of P-SAR are below the price.
FALL-option. RSI is coming out from the overbought zone and it is pointed down. Three values of P-SAR are above the chart.
Use this methodology to find out the best free binary options signals during the reversals.
For our trading session, we chose the vfxAlert signals. If you want to know more about this program, follow the link. Open an option on the next candlestick after binary option trading signals. The expiration time should be not less than 7-10 minutes even on the one-minute timespan. The longer the sideways movement, the higher the likelihood of a strong trend after its end. In such a situation, you can open the position, when P-SAP comes to reversal with strong signals. Use the economic calendar to follow the market situation. It is included on all popular trading platforms.