Sixty second binary options trading offers one of the most profitable forms of trading available. Traditional forex and stock traders acknowledge that the possibility of making up to a typical 85% profit on an investment in just one minute is often simply not possible outside of binary options trading. This has also been a major contributor to the popularity of binary options trading and one of the main reasons why so many professional traders now consider trading binary options over the conventional forms of trading. Whilst sixty second binary options trading also carries the risk of losing up to 100% of the investment in just a single minute, there are a large number of trading strategies which are used profitably by traders to make very handsome returns.
Basic strategies using time-tested methods
The world of 60 second binary options trading moves very quickly and having a trading strategy is imperative to ensure continued trading success. Without a strategy, purchasing binary options for such a short period is akin to gambling and something which will not provide consistency in profitable trading and will most likely end with a blown account. Keeping things simple when trading using such small timeframes is also a key element to avoiding the ‘analysis paralysis’ that occurs when trading with multiple indicators to sport short-term opportunities.
Applying candlesticks to 60 second binary options trades
In terms of a time-tested strategy, the use of candlestick anaylsis is one of the most time-tested techniques since the rise of the Japanese rice traders in the 1500’s. Candlestick charts provide traders with a visual indication of the strength of market price and future price movements as well as the existence of support and resistance. By applying candlesticks to short term trading charts, binary options traders can observe patterns and individual price bars which would indicate a near-term movement higher or lower. For 60 second binary options traders, one of the most important of these is the ‘engulfing’ candlestick, where a dominant candlestick literally engulfs the candle before, either bullish or bearish, to indicate that market sentiment is strongly to the upside or downside.
Adding volume indicators to 60 second binary options trading
Volume indicators can also be very helpful for 60 second binary options traders as these will demonstrate the level of trading activity in an underlying asset. Ideally, 60 second traders are looking for a switch in market sentiment in order to confirm the movement of price either higher or lower over the next 60 seconds to ensure that their binary options expire in the money. One of the most useful ways to interpret market sentiment is to look for rising volume following a reversal signal. Applying candlestick analysis to this, when an engulfing candlestick in the opposite direction to the short-term trend occurs at a recent high or low, a reversal movement is very likely to occur. On a 1 minute chart, if an engulfing candlestick is followed by one additional candle showing rising volume in the direction of the reversal then a 60 second momentum trade in this direction will have a high probability of success.
Patterns and volume combined offer binary options trade setups
There are many additional candlestick patterns which can assist binary options traders in successfully trading 60 second options. Many of these can be back-tested by viewing historical charts to ensure that they create the required immediate momentum to ensure that 60 second binary options close in the money. Using the strategy above, the engulfing candlestick is one of the most reliable trading signals for short term reversal momentum and can be considered one of the most effective single-bar patterns for binary options traders. Combining the fact that a rise in volume following this bar will indicate the validity of the market to move in the direction of the engulfing candlestick. For those binary options traders looking to further increase the probability of success using this type of trading strategy, increasing the expiry time of the binary options and looking for similar opportunities on the 5 minute charts can also provide additional high-probability binary trade setups combining candlestick and volume analysis.