Contents:If you have a chance to see the chart establishment of the world’s most professional traders, you will be surprised at its simpleness. In fact, traders of “market drivers” such as banks or investment funds almost trade with no indicator but price action, which itself is an independent system. Based on the basic principles of price action, a strategy so-called Everything is simple has been developed.
What is a Everything Is Simple Strategy?
The Everything is Simple strategy uses support and resistance lines which are manually drawn to define entry points. Nevertheless, the determined signals are still highly reliable because the point of this independent technique is that it enables us to follow the currently strong momentum. In a notably buoyant market like Binary Options, only flexible traders who are proficient in spotting the steps of market makers are able to make profits in the long run.
The most interesting fact of this strategy is that it doesn’t require any other indicator to be combined with. However, in case you want a better signal filter, you can use the system along with one or two effective leading beacons like Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), or Stochastic Oscillator.
In technical analysis of securities trading, the Stochastic Oscillator is a momentum indicator that uses support and resistance levels.
Having been watchfully tested by us over the last 12 months, this strategy has so far confirmed a win-rate of about 85%.
How to use Everything Is Simple Strategy to trade binary options
This strategy works best on large time frames like 1-day or 1-week and is suitable for all currency pairs. You will have to observe candlestick’s performance to identify trading signals.
The steps to define a calling opportunity are as follows:
- Spot a candlestick which has a long wick on top and a small body;
- Draw a horizontal resistance line at the highest point of the candlestick;
- Once prices pierce above the resistance level with a strong-looking bullish momentum, a bullish occasion is present. Enter a buy limit position which distances 5 pips above the horizontal line.
Meanwhile, the steps to determine a bearish occasion are as follows:
- Determine a candlestick which has a long wick below and a small body.
- Draw a horizontal support line at the lowest point of the candlestick.
- Once prices breach below the support level with a strong-looking bearish momentum, a putting signal is defined. Open a sell limit order which distances 5 pips below the horizontal line.
There are some significant entering rules when trading with this strategy as follows:
- Only enter the market when the candlestick breaking through the line is fully closed;
- Given the pump candlestick moving too far, the signal should be rejected;
- The expiry time of the position should be set four times larger than the chart period. For example, you can set the finishing time to be 4 days when trading on the 1-day chart.
If you like this strategy, you might also be interested in this Bollinger Bands Strategy
Pros and cons
- Generating highly accurate signals by its strict checking requirement;
- Allowing traders to profit from various market conditions;
- No additional indicator required.
- Necessitating traders to keep eyes on charts;
- Requiring a high level of patience.
The Everything Is Simple has shown itself as a simple but effective strategy which is totally suitable for mid-term or long-term binary options traders. Given sticking to its strict checking rules along with risk controlling and psychological managing methods, trading lovers may find this technique a perfect companion generating substantial returns.