There’s a common belief that trading digital contracts offers a simpler and potentially more lucrative alternative to other financial exchanges. It’s important to acknowledge that this notion holds some truth.
The primary allure of binary options lies in their capacity for frequent trading, coupled with the potential for substantial earnings. Here, profit isn’t contingent on how many price points have been traversed.
On the flip side, it would be misleading to assert that electronic contracts are categorically easier than Forex or other financial markets. Success in any domain of finance hinges on the presence of a well-crafted strategy.
This often leaves newcomers pondering: Where can one acquire such a system to kickstart their digital options journey? Fortunately, such methods do exist, and we’ll delve into one of them in this article.
The “Intersection Point” strategy, our topic of discussion, boasts several merits. Firstly, it harnesses the power of two indicators, bolstering the reliability of contract purchase signals. Secondly, it’s remarkably straightforward to put into practice, with no need for an in-depth grasp of the tools’ intricacies. One more advantage is that the IP strategy is good for lower timeframes, which makes such a system ideal in the binary options market.
How to set up a trading area?
To put the “Intersection Point” system into action, you’ll want to focus on a highly volatile asset like the EUR/USD or GBP/USD currency pair.
Set the timeframe to M5. According to the majority of traders, this particular time frame is ideal for binary options trading, as it offers frequent trading opportunities while being less risky compared to turbo options that last only 60 seconds.
For chart analysis, you can opt for either a bar chart or Japanese candlesticks.
In this system, we’ll be relying on two indicators, namely the trend Parabolic SAR and the Stochastic oscillator. You’ll find both indicators readily available in the Pocket Option terminal, and the best part is that you don’t even need to tweak their settings – the default configurations are perfectly suited for this technique.
How to trade with the “Intersection Point” Strategy?
The heart of this system is encapsulated in its very name, quite literally. Your main task revolves around observing the Parabolic points and the intersections of the Stochastic lines.
In this strategy, to initiate a CALL option, you should make your move when the fast Stochastic line crosses over the slower one from the bottom to the top, and concurrently, a Parabolic point forms beneath the candle or bar.
In contrast, for a PUT option, you’ll want to act when the blue Stochastic line crosses below the orange line, and simultaneously, a Parabolic SAR point takes shape above the bar.
Set the expiration period equal to the duration of two bars or 10 minutes.
This illustrates that certain strategies can be harnessed effectively even without an extensive understanding of trading. The “Intersection Point” technique is intuitive and accessible, making it well-suited for beginners.
However, it’s crucial to recognize that no trading system can promise a flawless 100% success rate. Consequently, it’s imperative not to disregard the principles of prudent money management, which means refraining from allocating more than 3% of your deposit to a single transaction.
In conclusion, the “Intersection Point” strategy offers a practical approach for trading binary options, especially for those new to the trading world. While it doesn’t guarantee foolproof results, when applied with disciplined risk management, it can be a valuable tool in your trading arsenal.