ZENITH TRADING STRATEGY FOR BINARY OPTIONS

ZENITH TRADING STRATEGY FOR BINARY OPTIONS

No one, not even the most experienced trader, is insured against losing money but to reduce the likelihood of such an outcome, it is important to adhere strictly to a proven strategy, follow the rules of money management and seriously approach the choice of broker.

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These recommendations concern not only the forex market: binary options trading, for all its visual simplicity, also requires compliance with these critical recommendations. Otherwise, the probability of loss increases significantly.

ZENITH TRADING STRATEGY FOR BINARY OPTIONS

In this article, we offer you a simple and affordable strategy for trading binary options – Zenith. With the exact observance of all the conditions listed in it, you can get a good profit after 10 minutes. Zenith is an indicator trading tactic based on two popular technical analysis tools, namely, the Stochastic indicator and the Envelope with a certain setting.

Terms of the trading algorithm

Terms of the trading algorithm

Trading this strategy can involve binary contracts for any asset, but mostly currency pairs. Trade is conducted on a three-minute chart.

The duration of transactions can vary from 9 to 12 minutes, that is 3 to 4 candles. The trader will need 2 indicators, configured as follows:

♣ Stochastic – with settings 5,3,3

♣ Envelope – with a deviation of 0.1

To understand trading with this strategy, it is best to use the advanced charts, access to which is provided to all clients of the FiNMAX broker. Some traders may ask, “Why can’t the trading platform tools be used for this purpose?”

The answer is simple: rather than overloading the site with superfluous information, the broker has installed only the most popular indicators on it, but on the advanced charts there is a large arsenal of additional technical tools, including those necessary for the implementation of the Zenith strategy.

So, we open the advanced charts and install the tools we need there, after which the chart takes the following form:

The following form

As you can see, the Envelope indicator is plotted on the price chart, and the Stochastic is displayed in its lower part. Now it is necessary to change the standard settings of these indicators to those specified in the strategy. Initially, we indicate the deviation of the envelope.

Then adjust the stochastic settings. The schedule is ready to work, now you need to wait for the moment when the conditions for entering the market appear.

Further reading

Conditions for trading a falling price

Conditions for trading a falling price

You can buy a put option when the following conditions match on the extended chart:

♣ The price chart goes beyond the upper limits of the Envelope indicator

♣ Stochastic curves rise above 80, enter overbought areas, and intersect

The appearance of such signals suggests that soon the uptrend will decline, and therefore, it’s time to trade for a fall in price. Visually, these conditions will look like this:

Conditions for trading a falling price

Further reading

Conditions for trading a rising price

Conditions for trading a rising price

You can buy a call option in the opposite situation when the following conditions coincide on the extended chart:

♣ The price chart goes beyond the lower limits of the Envelope indicator

♣ Stochastic curves fall below 20, enter oversold areas, and intersect

The appearance of such signals suggests that in a short time the falling trend will reverse, which means it is time to open a trade on the price rising. Visually, these conditions will look like this:

Conditions for trading a falling price-

Further reading

Practical example

Practical example

To make sure that the Zenith strategy works and that you can use it to profit when trading in binary options, let us show an example of a deal on the FiNMAX trading platform.

Practical example

To begin, open the advanced charts. As a base asset, choose the EUR/JPY currency pair and set a three-minute time frame. Next, we wait for the appearance on the chart of the necessary conditions for opening a trade.

The first is a signal that the price will soon go down, namely the price has gone beyond the upper limits of the Envelope indicator, and the Stochastic curves have broken through level 80 and have crossed each other. As soon as this signal appears, you should immediately switch to the trading platform and choose the EUR/JPY currency pair from the list of underlying assets.

Following the terms of the strategy, we set the expiration time of the option at 4 candles, that is 12 minutes, invest 40 cu in the transaction, and press the “Down” button, assuming that at the time of execution of the contract the price of the asset will be below the current value.

Click on “Buy” and wait for 12 minutes to pass. If the forecast is correct, the profit will be 71% of the original amount. After expiration, the price really fell, so the deal closed “in the money,” that is, in favor of the trader. As you can see, the net profit after just 12 minutes was over $68.

It should be noted that Zenith strategy signals do not appear often but each of them is very accurate and guaranteed to be profitable. If you want to test the effectiveness of this strategy in practice, open an account with a FiNMAX broker; he has all the necessary tools to help you successfully trade binary options.

General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.

Further reading