Pivot Point Binary options Strategy is a trading system that basically follows a trend following approach. While the system might look a bit complicated, it is in fact a very simple trading strategy and with enough practice, traders will find this to be a simple and easy binary options strategy.
Who is this strategy ideal for?
This trading system works best for 60 minutes or higher expiring binary options contracts and therefore more suited for intermediate to advanced binary options traders.
- Daily Pivot Points
- EMA 50
- EMA 200
- MACD (12, 26, 9)
For Call Options
- 50 EMA must be above 200 EMA to ascertain the up trend
- MACD Histogram must be above the Red signal line
- Price touches the pivot point from above
For Put Options
- 50 EMA must be below 200 EMA to ascertain the down trend
- MACD Histogram must be below the Red Signal line
- Price touches the pivot point from below
Examples of Pivot Point Binary Options system
- EMA 50 is below EMA 200 indicating down trend, so we only look for Put Options
- The candlestick marked in the blue vertical line shows a touch to the pivot point
- At the same time, we see the MACD also below the Red signal line
- A put option is placed with a 1 hour expiry time
- EMA 50 is above EMA 200 so we only look for placing Call options
- The candlestick marked in blue vertical line shows the touch to the pivot point
- At the same time, the MACD rises above the Red signal line
- A call option is placed with a 1 hour expiry time
Strategy Tweaks and Tricks
Because of the 50, 200 EMA trend filters there are not many signals that come by, which require traders to monitor multiple currencies.
Pivot point binary options strategy is well suited for intermediate to advanced traders. For those seeking more signals will find this strategy to take its own time to trigger the signals thus disappointing traders who are accustomed to trading on smaller time frames.