5 Minute Binary Options Strategy

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    1st Place! Best Binary Broker 2020!
    Best Choice for Beginners — Free Education + Free Demo Acc!
    Sign-up and Get Big Bonus:

  • Binomo
    Binomo

    2nd place! Good choice!

Contents

5 Minute Binary Options Strategy

A quick look at the best types of strategies for one of binary option’s most popular expiry times: 5 minute.

Strategies For Five Minute Option Expiry

There are a lot of ways to trade the 5 minute binary options expiry. This time frame is one of the most versatile in terms of the types of strategies you can use because it is inherently volatile yet at the same time can sustain a trend long enough to be useful to us binary options traders.

You can look at the bigger picture with 5 minute candles or you can drill down to 1 minute charts to see the swings in momentum. When choosing a strategy it really comes down to what kind of trader you are, what types of analysis you prefer and in the end, the asset you are trading.

When it comes to assets there is really no one class that performs best in the 5 minute time frame although most binary traders prefer forex, commodities and indices, not necessarily in that order. These assets tend to have more day to day action because they are traded globally around the clock and will move up/down within their near term ranges with more conviction than less liquid stocks.

When using the 5 minute expiry set charts to 1, 2 or 5 minute for best effect.

Most strategies are adaptable to any time frame, the caveat is that the shorter the time frame the less reliable the signal. A candlestick signal on the daily charts is stronger than one on the hourly charts that is likewise stronger than one on the one minute charts.

  • Price Action Strategies – Price action strategies are trading in it’s simplest form. Traders simply pay attention to price action, the minute to minute changes in prices, and how that action behaves in order to make trading decisions. In the old days this was done by watching the ticker tape all day, today it is much easier and more fun to use a charting package like MT4. These will work with charts set to 1,2 or 5 minutes. Patterns include triangles, head & shoulders, pennants, flags, diamonds and many more that can indicate continuation or reversal in the market.
  • Scalping Strategies – Scalping strategies are very short term form of price action trading although they also incorporate other types of signals as well. Scalping, simply put, is a trade based on what you think the market is going to do in the next period, and this usually means minutes, never more than 10, 5 is perfect. These strategies do not care about trend, only on which direction the market is going now and if it will keep going that direction long enough to place a quick trade. These are best used with charts set to 5 minutes as the signals are generally good for the very next candle.
  • Japanese Candlestick Strategies – Japanese Candlesticks are the premier method of viewing trading charts and give a variety of signals that are at heart price action signals but can also be used for scalping and other types of strategies. The candlesticks are nothing more than an expanded method of plotting price data on a chart but the effect is startling, almost like putting on a pair of glasses and seeing the world clearly for the first time. Candlestick signals are good with any chart setting, depending on which method of trading them you choose.
  • Momentum/Swing Strategies – Momentum is an important aspect of price action and technical analysis. When prices, the market, moves it has momentum. Momentum is the amount of force behind the move, this force is the sum of the people and money moving into, or out of, an asset and can carry prices in once direction for an extended period of time. When this happens you want to trade with the momentum using an indicator like MACD or stochastic. Sometimes the markets momentum will carry it too far in one direction and when it does, prices will swing in the opposite direction in order to rebalance. I would suggest using the 1 or 2 minute charts with this type of strategy/expiry combination.
  • Trend Following Strategies – When there is enough momentum, often described as the entrance of new money entering the market, a trend can be established. A trend is a periodic and systematic movement in which longer term moves in one direction more than offset nearer term corrections in another. Trends, like all aspects of technical analysis, can be both measured and predicted. This means that those nearer term corrections are entry points in trend following strategies. One of the oldest sayings in trading is “the trend is your friend, always trade with your friend” and it’s still around for a reason.

This video shows how to use multiple charts at IQ Option. This can be useful if trying to spot trends over multiple timeframes as mentioned above:

5 minute strategies

Binary Option Trading using the ADX and EMA Cross System

This system is based on two indicators only and offers consistent profits. It is called the ADX and EMA Cross System and it is an uncomplicated system suitable even for amateur traders. This system on reflection appears suitable for binary option trading as well. The system is based on an average directional movement index (ADX) […]

HGI v2… 5 Minute BO Strategy

This is a binary options strategy that we’ve received. It’s very simple to use. You might be able to find this strategy on the web, but not this v2 version. It’s specifically upgraded to be simpler to use. We recommend only to trade in the direction of the current trend. If you use M1, go […]

Binary Options ‚3‘ Strategy That Works + Video

While we go haywire finding a reliable trading system, we tend to miss out on the obvious. Three indicators strategy ensures high potential profits as it produces exact entry signals confirmed by 3 indicators. Moreover, it can be used with all sorts of currency pairs. This strategy that works is based on three most popular […]

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    1st Place! Best Binary Broker 2020!
    Best Choice for Beginners — Free Education + Free Demo Acc!
    Sign-up and Get Big Bonus:

  • Binomo
    Binomo

    2nd place! Good choice!

BBand Stop binary option strategy

BBand Stop Strategy is a 5 minute binary option trade strategy which uses BBand Stop alert indicator in MT4 to define ideal position to enter the trade. How to setup the chart Timeframe: M5 Template: BBand Stop Strategy (Download here: eDisk or UlozTo.Net) How does this strategy work Arrows (pointing up and down) will be displayed over/under […]

MARSI Strategy – Gaps and other trade signals

MARSI is a strategy that uses the lines of support and resistance. These are drawn automatically and we only need to pay attention when an arrow appears. How to setup the chart Timeframe: M5 Template: MARSI Strategy (Download this binary options strategy here; or download it here) How does this strategy work As soon as an […]

Pinbar/Value Chart strategy

This strategy is based on tracking pinbars (candles which have their wick at least 2 times longer than the body). This strategy is recommended for currency pairs, but it might as well work with other assets. How to setup the chart Timeframe: M5 Template: Download the strategy ZDE How does this strategy work The Pinbar / Value […]

T3 Sniper’s binary options strategy

T3 Sniper’s strategy is great for binary options trading if we want to leverage trend strength. With these indicators we can enter a trade at the beginning of it and then ride with it. This strategy is used for currency pairs only and has a success rate of about 75 %. How to setup the chart […]

Binary trading with BOSTS_1 indicator

Trading using BOSTS_1 indicator is very simple, however it is not without risks. You may have seen this indicator before as it is usually a part of more complex strategies. According to our experiences, this indicator works using Bollinger bands. It is trend indicator, therefore you don’t need to use trends if you use BOSTS_1. We, […]

Strategy for binary trading – 8 OSSEN

This is a very thought out strategy which is among my favorites and it brought me lately interesting profits. Even though it is a more complicated strategy, trade openings are very comprehensible from the chart. How to setup the chart Timeframe: 5M Template: 8-OSSEN-STRATEGY- (Download it) How does this strategy work We pay attention to yellow […]

5 Minute Binary Options Strategy

Finding the right way to trade in any type of financial market is difficult. It will generally take an extended period of trial and error; this will allow you to discover what works for you and what you are comfortable with. However, there are some approaches; such as the following 5 minute binary options strategy which are easy to learn and provide a high success rate. This particular 5 minute binary options strategy requires you to adopt a patient approach, have a trading account already in place and know how to use the charts generally provided by your broker.

Derivative Oscillator – An Indicator For Your 5 Minute Binary Options Strategy

This method of trading relies on what is known as the Derivative Oscillator; this is a type of trading indicator which looks for trends and even creates trends. This approach is based on a technical analysis of the data available; it can accurately predict the direction and length of a specific assets price movement. This is especially true if the asset is already experiencing a strong movement. In these cases it is generally a matter of knowing when to place the transaction; this will usually be the difference between success or failure.

Applying the 5 Minute Binary Options Strategy

You must start by ensuring the trading account you intend to use is looking at five minute intervals. It is then safe to say that you are looking at the asset in the right light. A 5 minute binary options strategy needs a five minute time frame! An essential part of this strategy is the approach; to ensure the signals which are created by your analysis are accurate and will generate successful trades. It is also worth noting that the 5 minute binary options strategy is most effective when used against low volatility currency pairs such as USD / EUR or the US dollar and the Canadian one. It also works well with high volume stocks such as Nike, Amazon or even Apple.

Candle Chart Analysis And Derivative Oscillator

Once you understand these factors and have access to the trading account, etc. You will be ready to trade. The easiest approach is to look at a candle chart and add the derivative oscillator indicator to it. In general the oscillator will move alongside the price action of your candle chart. Alternatively the indicator, should provide three indicators; will show the likely price movement. The candle analysis will then follow the indicator.

As soon as you note a change in direction from the indictor you should be ready to trade. Providing the next candle on your chart shows a supporting change in movement then you can be assured that the price is about to shift and you a trade should be placed as per all the chart movements. Your trade must be a 5 minute one to generate a profit. Shorter increases the chance of a bad trade due to volatility; 5 minutes is long enough to get the result you want!

Once you have looked at the candle and the indicator you will realize that this is a simple approach which can provide a good rate of return. In fact, the success rate of this approach is generally as high as seventy percent. Of course, you can refine and improve on this strategy if you wish!

5 MINUTE TRADING STRATEGY

Binary options ‘5 minute trading strategy’ is one of the best and most simple high-frequency trading strategies for binary options trading. It is easy to learn for beginners and it can serve as a great starting point towards learning technical analysis. Watch the full video tutorial and try it out.

IF YOU FIND MY INFO USEFUL, PLEASE LIKE THIS VIDEO, G+ or TWEET AND SUPPORT MY WEBSITE

Introduction to 5 Minute Trading Strategy

5 Minute Trading Strategy is a great introductory strategy to start trading binary options with technical analysis. It will allow a beginner trader to learn how to use the basic technical indicators and at the same time make profit from the very beginning. As the basic analysis is done on the 1 minute charts and the trades are executed in 5 minutes, the system allows making high number of trades in one trading session. The basic idea of this strategy is to enter the positions on the levels of resistance where short-term reversals are expected. This can be considered> High-Frequency Trading Binary Options Strategy . Once you understand the basic concepts, the strategy can be modified and can be traded on higher time frames (for example 5 minute chart with 10-20 minutes expiry times) for higher in-the-money returns and less ‘noise’ (that is a constant factor on 1 minute charts) and thus less risk. Additional indicators can be used to get even more precise entry positions and even higher winning trades ratio.

The Basics of 5 Minute Trading Strategy

  • is extremely simple and easy to understand for beginners,
  • allows beginners to learn how to trade with technical analysis,
  • is designed for currency trading (Forex) with binary options,
  • produces extremely good results in ranging markets with an average of 65% winning trades,
  • uses only a few extremely simple set of rules,
  • allows a trader to make up to 20 trades on a single currency pair in one day,
  • can be traded with minimum risk by investing the same amount of money into each trade,
  • can be traded with moderate risk by using a martingale scale (in case of a bit higher initial account balance).

5 Minute Trading Strategy Full Step by Step Tutorial

STEP 1 – Watch the video on the top of this page

  • Watch the video above (if you still haven’t) to see the potential performance you can get with this strategy.

STEP 2 – Learn the Basics of Binary Options Trading

  • If you are a complete beginner to the concept of binary options trading you should first learn the basics. The best way to do so is to join the free education center on the binary.com website and WATCH ALL THE VIDEOS in the VIDEO CENTER.

STEP 3 – See how I used the Technical Analysis (watch the video below)

STEP 4 – Open the Freestockcharts with preset indicators and take a look at the charts

  • Open Preset Technical Analysis Charts. You can use these same charts to make the analysis when trading.
  • Freestockcharts – Preset charts for 5 minute trading strategy – CLICK HERE

STEP 5 – Watch the video presenting the Full Strategy Rules

STEP 6 – If you don’t have a brokerage account yet and you are looking for a trusted broker, you can check MY RECOMMENDED BROKER BINARY.COM – CLICK HERE.

STEP 7 – Learn more about Technical Analysis Indicators used in This Simple Strategy

To find more possibilities on how to further develop this trading strategy you can watch the Binary Options Indicators Videos on this Website. This way you will learn how to use the basic freestockcharts technical analysis indicators which can be efficiently combined with the 5-minute trading strategy.

5 Minute Binary Option Strategy

A 5 minute Binary Option strategy involves using one of shortest expiry times available for Binary Options. There are indeed some brokers who will offer expiry times such as 60 seconds and 30 seconds but these are mostly speculative and should be avoided.

What is interesting about a 5 minute binary option strategy is that you can utilise a number of tools and indicators that work best for shorter dated trades. This strategy also allows the trader to enter as many trades as possible within the trading day.

The main technical indicator that the trader will be using is moving averages such as the simple and exponential as well as Bollinger bands. The trader will also be using candlestick indicators with a time frame of 5 minutes.

Setting up the Strategy

Before you trade with a 5 minute binary options strategy, you will need to set up your platform and charting environment in order to provide yourself with the most information in order to trade.

The first step is to plot the individual candlestick bars. These should be set on the 5 minute horizon as this corresponds to the expiry time of the individual options.

You will then need to set up the charts with the appropriate indicators. In this case, we will be using the Bollinger bands as our moving average indicator. This is because they have an upper and lower limit around the mean. These can sometimes also act as resistance and support levels.

The best Bollinger Bands indicators to use for this strategy would be the (2, 20) bands. These bands use the 20 period lookback period together with the upper and lower bands that are 2 standard deviations above and below.

What to Look For

A 5 minute binary options strategy tries to establish whether the candle that starts on the entry of the option will end up above or below the open price on close. This will determine whether the option will expire in or out of the money.

This is why the trader will need to examine each of the individual candles in order to make that decision. This also has to be combined with an analysis of where the price is in relation to the Bollinger bands.

Therefore, the trader will be looking at indicators that are either projecting bullish or bearish sentiment. This could allow the trader to form the right opinion of where the preceding candle will end up.

Resistance Levels and Formations

As mentioned, the Bollinger Bands are sometimes seen as key resistance and support levels for the price of an asset. As such, the trader can form a view around the candle that is likely to form based on where the price is in relation to the support and resistance levels.

For example, in candlestick analysis, a three method formation is a collection of 5 candles where the middle three candles are smaller in size than the 1st and 5th and are also a different color. This can either be a bullish or a bearish three method formation. You can see examples of these in the chart below.

If the three method formation occurs around a bollinger band support or resistance level then the trader is likely to form a view on whether it is likely to break the resistance / support or rebound from it.

When the 5 minute candle is used, the trader can then enter either a PUT or a CALL option based on the readings that he / she is getting from these two indicators.

In the below chart we are going to analyse a 5 minute binary option strategy. This is the price of Bitcoin in USD. As one can see, there was a point at which the top of the Bearish three method formation touched the upper Bollinger band and rebounded.

This therefore confirmed the suspicion of the trader to enter a 5 minute PUT Binary Option on Bitcoin. The trader would have won this trade as it would have ended up in the money.

Band Riding with Three Candles

There are also cases in which the price of an asset rides the top Bollinger band on the way up or the bottom Bollinger bands on the way down. This can either be a bullish or a bearish indicator.

Candlesticks can also be helpful in this case and especially when you have a particular formation of three candles. These could either be the “three white knights” or the “three black crows“. These are three candlesticks of the same color that are either increasing or decreasing in price.

What is important to note for the 5 minute binary option strategy is that the three white knights are a bullish indicator and the three black crows are a bearish indicator.

Therefore, the white knights will sometimes form while riding the upper band of the Bollinger indicator and the black crows will sometimes form when riding the lower bands on the way down.

When the trader observes the candles together with the bands they can form an opinion of what the next candle is likely to be and hence what sort of binary option they should purchase, a CALL or a PUT.

In the below chart of GBPCHF we can see that there appears to be three white soldiers that are on top of the upper Bollinger bands. This is indeed a bullish sign for the trader and hence an indication that he should enter a 5 minute binary call option on GBPCHF.

The result would have been a 5 minute binary option strategy that ended in the money and was hence a win. Indeed, the trader could have also entered a long 5 minute call option on the next candle and this would also have been a win. Band riding is often quite a momentum based strategy.

Engulfing Patterns

One of the more simple candlestick patterns that only involves two candles is the engulfing pattern. With this, a candle is “engulfed” by the second candle with a much larger body and of a different colour.

This can either be a bearish engulfing pattern or a bullish engulfing pattern. In the case of a bullish engulfing pattern, a larger green candle is engulfing the smaller red candle. The opposite can be said for the Bearish engulfing pattern.

When these patterns are observed on the edges of the Bollinger bands then the trader can also take a view on the whether the next candle will be an up or a down candle. Hence, the engulfing pattern can be used to determine whether the pattern is likely to break through the upper / lower bands or rebound from them.

For example, in the below chart of brent crude Oil, we have a Bullish engulfing pattern that breaches the upper Bollinger band. This is a bullish indicator and hence is an indication that the next candle will end up on the open.

Indeed, if the trader had entered a 5 minute call option on Brent Crude on the applicable candle, the trade would have ended in the money and the trader would have got the win on the option.

Keep it Risk Controlled

Although the 5 minute Binary Option strategy can be a profitable strategy, one needs to keep in mind that it can be risky if trade size and draw down limits can not be met. The trader should not enter an option that is more than 2.5% of the capital on the account.

Having a daily trade loss limit is also a prudent move. This can either be based on a value number or number of trades. Moreover, the trader should not trade for the sake of entering a position. All of the indicators should confirm the trade that he is entering. There are a number of other Bollinger Band and candlestick indicators that you can look for.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    1st Place! Best Binary Broker 2020!
    Best Choice for Beginners — Free Education + Free Demo Acc!
    Sign-up and Get Big Bonus:

  • Binomo
    Binomo

    2nd place! Good choice!

Like this post? Please share to your friends:
Binary Options Trading Wiki
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: