Financial markets experts claim it is much easier to trade on binary options than on other types of exchanges. We completely agree with the statement, because in order to profit from the purchase of an electronic contract, it is enough to determine the direction of the price. How can it be done? Well, you need three basic elements: knowledge, expertise, and practice. You need a reliable trading strategy.
Imagine you just started trading? How to get three elements in your strategy if you are a beginner? To beginners we recommend applying tested trading strategies like “Three in a row”. We will discuss all details of the strategy in this article.
The main feature of the system is that you do not even need to know a lot about the indicators. All you must do is to monitor its shapes.
How to set up parameters
As mentioned above, to implement the strategy, you need a price chart. We recommend selecting “Japanese candles” because it is the most visually appealing and readable. That is why it is the most popular among traders. We all like simplicity.
Are you a beginner? If you have never traded binary options, or have never dealt with financial markets, you need to know the following:
- There are ascending and descending candles.
- In Pocket Option, they are colored in different colors: green – ascending, red – descending.
- The body of a candle is a rectangle painted in one of colors.
- Spikes, shadows or tails are the lines that emanate from the body of the candle. However, for this strategy we do not use it.
Each candle takes a certain amount of time to form. It is called the timeframe. For example, if you have chosen a frame equal to 1 minute, then one candlestick will form in 60 seconds. After this time, a new one will open.
To set the timeframe, just click on the corresponding menu in the terminal and select the value.
Now, you know everything to start with the Three in a Row strategy.
How to use the Three in a Row strategy for electronic contracts
Let us start with trading EUR/USD currency pair. Its volatility will be enough to exclude possible multidirectional fluctuations. We will start with 5 minutes as the timeframe.
Ready, steady, go. After you have set up the workspace, start trading.
The system is not accidentally called “Three in a row”. It has simple logic: as soon as you see three candles of the same color on the chart, then at the opening of the next one you should buy a contract in the same direction.
For example, if three candles are green, then do a CALL contract and vice versa.
The expiration time is set to 5 minutes.
With the “Three in a row” strategy, each beginner will be able to get acquainted with the binary options market. However, consider the news and speculative fluctuations and trade safe, which buy a contract for an amount not exceeding 2% of the total deposit. It is one of the safest option strategies that you can execute.