In this post, Forex Insight Pro (FIP) for MT4 was used to help planning in trading EURUSD binary option. The platform of binary option trading could be from any borkers on any devices, each one has slightly different rules and facilities. The FIP was set to have EMA(5,10,20) ribbon, MACD(12,26,9) increasing (green) / decreasing (red) colors on EMA40 line. Upward green triangles were for local max points and downward red triangles for local min points. Red vertical lines were for MACD < Signal and green vertical lines were for MACD > Signal. Upward green arrows were for EMA5 > EMA10 and downward red arrows were for EMA5 < EMA10. The CCX counting was set to 5. The CC5 down numbers were below the prices while the CC5 up numbers were above the prices. We need to be very selective in binary option trading. The discipline in this case is to be very patient and wait for entries at the right occasions only. This historical example was for the CALL option. The trade setup began when we saw a red vertical line or MACD < Signal, a red downward arrow or EMA5 < EMA10, a flipping downward of EMA(5,10,20) ribbon and a start of CC5 down counting. These confluence of factors told that the market was going down. We need to wait until the selling pressure dries up before placing a CALL option. The CC5 down counting went on while the EMA ribbon spread wider and downward. Local max and min points occurred during this stage could be used to gauge the likelihood of trend reversal. By creating a trend line that connected a new local max point to the previous and higher one. This was called Supply line 1. The Supply line 1 guided the downtrend until the CC5 down = 12 and a local min point were seen. In this stage, the RSI7 indicator was below 30%. The price broke above the Supply line 1 and went side-way to the right to consolidate the strength. During this period, another local max point was used to create the Supply line 2. When the price broke above the Supply line 2 and the EMA(5,10,20) ribbon ( green upward arrow or EMA5 > EMA10 ), a CALL 15 minutes binary option was placed. Fifteen minutes later, the call was in the money with a 80% gain.
Investors who want to learn how to read market stories from the charts can consult me (Dr. Nimit Chomnawang) at [ m.me/nimit.chomnawang ].
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