5 Minute Binary Trading Strategy

Binary Option Trading in Just 5 Minutes

There are different kinds of binary option trading. Some trades can be done in as short as 30 seconds while some can last for an hour. It is possible to trade binary options within a short period and still have high chances for profit. The 5 minute binary option trading strategy is a good start for those who wish to get in and out of trades quickly.

The 5 minute binary option trading strategy is all about making the most number of transactions in a single session. It is a good technique for beginners. Not only does this trading strategy help them understand the basics of technical analysis, but it also leads to profits as they proceed with the method.

Going for a five-minute strategy will give you good payout rates with less risks. You simply have to understand which will work for you and which won’t.

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Components of the 5 Minute Binary Option Trading Strategy

There are two components to this trading strategy: the chart and the oscillator.

The chart, of course, is where you can find all the trading details and technical information. The oscillator, on the other hand, is what illustrates the stock movement for that particular five minutes.
Aside from the chart and the oscillator, you also have to choose a suitable broker and binary option platform that will help you make the most out of this strategy. Various platforms are available, but the ones highly recommended are TradeRush, 24option and StockPair. You can download them all and see which works best for you.

If you are not satisfied with any of these three, then you can always check out other platforms to see which will work with you better.


How It Works

The 5 minute binary option trading strategy involves three steps.

• Your first step is all about picking out the asset for trading.
• Your second step is establishing the charting system to use once you go online.
• Your third step is about using the open-close & high-low bars in your chart.

Your chart should have lines that show the asset’s price movement for five minutes. Once that five minute period has passed, a bar should indicate if the asset price had increased or decreased.

To understand an asset’s trend, you need to study at least three bars. Three green bars mean a bullish market and you can go for the call binary option. Three red bars, on the other hand, indicate a declining market and you can choose the put binary option.

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If you think the market is on the rise, then you can go for a call i.e. the asset price at the expiry time must be above the strike price. A falling market, on the other hand, should allow you to buy a put i.e. the asset price at the expiry time must be lower the strike price.

To make it simpler, here’s what you do:

• If the price is fluctuating from lower to higher when compared to its moving average, then you should buy.
• If the price is fluctuating from higher to lower when compared to its moving average, then you should sell.

It’s also recommended to check out resistance points that expect short-term reversals.

Why Go for This Strategy

If you use this correctly and are able to create a well-crafted strategy, then you’ll be able to make money. This strategy is also recommended because brokers won’t be able to manipulate prices.

Going for this strategy will give you a bit of an advantage especially when you’re trading in sideways markets. Sideways markets are usually avoided by traders because they do not point out a specific direction. While other traders are uncomfortable with it, the five-minute strategy actually works best with this kind of market.

5 minute binary option trading strategy

With this strategy, you are able to create several trades within a day. You will understand chart movements and trade using your own observations instead of waiting for signs and indicators.
According to those who have tried the 5 minute binary option trading strategy, the success rates are high. Once you get the hang of it, then your chances will be higher and your profits will be greater.


Points to Ponder

Like any other strategy, there are points you have to remember in using the five-minute strategy.
Don’t take huge risks just yet. Use dummy accounts and demo platforms first in testing these strategies. It’s good if you’re already comfortable using a particular platform, but it is always better to test a new strategy before you finally shell out your money.


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Some platforms have timers that immediately start upon entering the trade. This concept may be simple for some, but there are people who need time to get used to it. And so, traders going for these platforms should be comfortable enough with them to maximize every second allotted for this strategy.
The average minimum trade size is $25. Small-sized accounts need to be careful in using this strategy or else they’d deal with over-exposure. What you can do is to trade first for as low as $1,000 to avoid exposing your capital on the market anytime.


Conclusion

Going for the five-minute trading strategy for binary options is recommended for new traders. In fact, it’s one of the most ideal and highly suggested strategy, even for beginners.

Setting this up is easy. All you need is a reliable platform to guide and assist you. It only requires three steps – choosing the right asset, choosing the platform, and utilizing the charts to obtain profit. If you’re able to establish an appropriate platform and identify a strategy that works for you, then profit is sure to come.

The five-minute strategy also has its pros and cons. Profits are the leading advantage it brings. It also allows you to create multiple trades and take advantage of its prices. But of course, you shouldn’t be too complacent in using this strategy and immediately jump into using real money. Try to go for using a demo platform first to ensure you’ll be familiar with the platform.

 


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