Named exactly as the function, “Tick” is a very popular strategy with high accuracy, enabling traders who intend to scalp the market to collect short-term trading opportunities following the “buy low, sell high” rule. In this article, we will guide you in detail how to establish and apply this system to make profits from the smallest waves in the binary options mar" />Named exactly as the function, “Tick” is a very popular strategy with high accuracy, enabling traders who intend to scalp the market to collect short-term trading opportunities following the “buy low, sell high” rule. In this article, we will guide you in detail how to establish and apply this system to make profits from the smallest waves in the binary options mar" /> Named exactly as the function, “Tick” is a very popular strategy with high accuracy, enabling traders who intend to scalp the market to collect short-term trading opportunities following the “buy low, sell high” rule. In this article, we will guide you in detail how to establish and apply this system to make profits from the smallest waves in the binary options mar" />
› Tick strategy

Tick strategy

Named exactly as the function, “Tick” is a very popular strategy with high accuracy, enabling traders who intend to scalp the market to collect short-term trading opportunities following the “buy low, sell high” rule. In this article, we will guide you in detail how to establish and apply this system to make profits from the smallest waves in the binary options market.

Introduction


This strategy consists of two groups of indicators which could easily be found in FiNMAX’s advance charts. The first group is composed of a set of three 50-period Bollinger Bands (BBs) that have separate deviations and colors, used to identify entry points. The other group contains two leading indicators including Relative Strength Index (RSI) and Stochastic Oscillator, exposing whether the defined trading opportunities are reliable or not. The detailed setup is as follows:

  • 50-period BBs with the deviation of 2 (black)
  • 50-period BBs with the deviation of 3 (blue)
  • 50-period BBs with the deviation of 4 (red)
  • RSI with the period of 8
  • Stochastic Oscillator with parameters 14, 3, 3

Initially, this technical system has been developed for scalping binary options traders who always tend to sit beside their computers and constantly observe the charts. Despite the inventor asserting that it works well on 5-minute chart and the positions should be held in about five minutes, we judge that trading too quickly is quite dangerous. Therefore, we intentionally made some important adjustments to stabilize the strategy. In case you still want to use the aboriginal one, we suggest that the expiry time should be set less than 30 minutes.

The modified system has carefully been checked by us for the last eleven months, presenting a win-rate of about 82%.

How to use the Tick system to trade binary options


Our version works best on 15-minute and 1-hour charts. To gather trading occasions, you will have to observe the Bollinger Bands to define signals, and confirm them with the leading indicators (RSI & SO).

A calling signal is affirmed when:

  • Prices approach the lower blue band and present potentially reverse signs
  • RSI line holds above 30
  • Stochastic Oscillator lines are above the 20 level

Tick strategy

On the contrary, a putting signal is confirmed when:

  • Prices rebound from the upper blue band and expose signs of a reversal
  • RSI line remains below 70
  • Stochastic Oscillator lines are below the 80 level

Tick strategy

Position’s expiry time should be set eight times larger than the timeframe of the chart you trade on. For example, you can set the finishing time to be 120 minutes when trading on the 15-minute chart.

Pros and cons of the system


The biggest advantage of the “Tick” system is that it allows binary options traders to gather highly reliable near-term trading opportunities due to strict checking rules made from the combination of five indicators. Besides, the strategy is relatively easy-to-use since the indicators are available in FiNMAX’s advanced platform. Nevertheless, a high level of patience is required as traders have to constantly get eyes on the charts to collect signals.

Conclusion


“Tick” is a very effective technical system and is especially suitable for short-term traders who are able to constantly observe the trading platform. We believe that given you disciplinarily following the entering terms, earning substantial profits in such a volatile market as Binary Options is entirely possible. However, please don’t forget to use the strategy along with risk controlling and psychological managing methods to not only minimize the risk but also maximize the income.


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