Simple False Break Strategy for Binary Options

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  • Binarium
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    Perfect Choice For Beginners and Middle-Level Traders!
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  • Binomo
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Simple False Break Strategy for Binary Options

False breaks occur in all the markets, especially in an environment with low liquidity. Since they occur so many times, there must be at least an effective way to take advantage of them. There are actually a ton of ways to exploit false break but we will discuss one of them which we believe is appropriate for all the binary options traders.

The actual setup explained

We must begin by saying that at least a basic knowledge about technical analysis should be known, so you will manage to understand better what we are explaining. We will take an actual example for the chart, you will manage to understand better how to approach false breaks.

Below you can see a chart with the Facebook stock. The main thing we have drawn is the key resistance area located around the 185 level. The price of the stock had been consistently trading on the upside for a few years and also managed to break above the 185 resistance level.

However, following the break we see that the buyers were unable to hold the gains the counter-trend players, in this case, the sellers, had begun to gain ground. They did so in an impulsive way, driving the price below the 185 key level. This is one of the most important element of our setup – the impulsive move on the other side of the initial breakout.

That communicates that the counter-trend players had not been impressed by the break and are willing to step in at a better price to begin a reversal. As you can see, the price had managed to recover following the bearish impulsive move, but where did it stall?

Around the 185 key level. After three failed attempts to break on the upside, the sellers had resumed and a 25% drop followed. You need the discipline to exploit this kind of setups and place profitable binary options.

You will find this market behavior on smaller time frames as well and their offer opportunities for trading. You can place binary options at the key level that you have found or wait for a confirmation of the false break if you are more conservative.

The best Binary Options Strategy – (That works fast)

On this site, I will show you my best Binary Options Strategy. It has a hit rate of over 60%. You can easily use it in every timeframe like 60 seconds or higher expiry time. Also, it is possible to use the Martingale strategy to improve your results. It is called the “False Breakout Strategy”. It works on every asset and in every timeframe. Learn to trade profitably in a few moments. Look at the picture below for the first impressions.

If you only trade this style of trading, it is possible to make a lot of money. Just search in the markets for a high/low or support and resistance and wait for a false breakout. In the next chapters, I will provide you more information to win against the market!

The False Breakout Strategy

Why do you need a Binary Options Strategy?

Binary Options Strategies can be different methods to trade the market. First of all, a Binary Options Strategy does not have to be difficult. It is possible to make money with simple ideas and methods. Therefore it is important to use strict rules for trading the market. The most common mistake is not keeping to your own rules! In addition, a good strategy reduces emotional and irrational trading.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker!
    Perfect Choice For Beginners and Middle-Level Traders!
    Free Demo Account! Free Education!

  • Binomo
    Binomo

    Honest broker!

Most traders lose their money because they trade without a proven method and strategy. Advanced traders know how the market work and they practice their own methods a lot. You have to learn and get a higher knowledge of the market. From my experience, it is not easy to learn to trade successfully in a short time horizon. In the following article, I will give you strict rules for trading the markets and I will show you how the strategy is working easy and successful.

4 steps to become a professional trader:

  1. Get knowledge about the financial product and the market
  2. Learn a profitable Binary Options Strategy
  3. Practice in the Demo Account
  4. Start trading with real money if you trade successfully

False Breakout – The Best Binary Options Strategy

False Breakout is an easy way to trade the markets. To trade breakouts do not work very well. I have tested it many times in the past (I will show you the reason why it does not work good below). After a breakout, the market comes back most of the times.

All you have to do: search for a level (high/low or support/resistance) and wait for the market to break the level. If the market comes back you can go short (put) and long (call).

False Breakout: The market breaks a high/low or support/resistance and comes back to the level and stays under/upper the level. Support/resistance are more than one high/low in a row. You can use this method in any timeframe and with any asset/market. It is universal. See the picture below!

Why does this Binary Options Strategy work so well?

For this question, it is important to have more knowledge. At highs and lows are a lot of stop-losses from other traders in the market. Professional traders use this knowledge to get high liquidity for their own positions. They quit or open a trade where high liquidity is. In most cases they will fake this breakout or the market will turn because of closed positions.

There are a lot of traders who will trade such breakouts. Algorithms are programmed and triggered to make lose them money.

Facts:

  • Stop-losses are triggered with a breakout
  • A lot of stop-losses means higher liquidity
  • This knowledge is used to open or close big positions
  • The market will turn around in most cases
  • Sometimes it is a short turn around and sometimes the trend will change completely

Which levels are the best for trading?

New and fresh highs and lows are the best levels for this Binary Options Strategy! With several highs in a row, it is more likely that the market will break through this level. Search for big new and fresh highs. For the best results, the level should be created in the current day. See the picture below.

Different levels for your entries

Furthermore, the best levels got the V-Form. I will show you in the picture below. The V-Form is seen clearly by a lot of other traders in the market. They put their stop-losses on these levels. Also, it is possible to trade the V-form as support and resistance. I rather wait for the false breakout of the V-Form. It works with a high hit-rate and you can easily make money with Binary Options.

The best level V-Form

When choose your entry? – For Dummies

Risky traders open a position directly in the opposite of the breakout. In my opinion, there is a better way to get good results. In the picture below I will show your my exact entries. Select the level in the markets. If the market passes the level back, you can open the trade. It is just so simple as it sounds. Sometimes you will need 2-3 trades to make a profit. That is why I double my invest amount if I lose a trade.

Additional information: You can wait for a candle close below/upper the breakout level to get a better confirmation

Which timeframe can I use for the Binary Options Strategy?

You can use any timeframe for this strategy. The time does not matter for your analysis. Only the price of the asset matters. No professional trader cares about the time. You will see that the small timeframes are more difficult to trade because you have to pay more attention to the market. You have to react much faster than in higher timeframes. In conclusion only the price of the asset matters.

Money Management for the best success

Money Management belongs to every Binary Options Strategy. Without the right money management, you will lose everything. Most traders do this mistake. I personally prefer to risk 1 – 5% of my trading account in one Binary Option. So you can lose some trades without destroying your account completely. The money management depends on the trader, too. Some traders are very aggressive and take a lot of money to invest. In the end, you have to decide for yourself how much money you want to risk.

Some trades use 10% or more of the account balance for trading. For example, if you got 4 losing trades (this happens) in a row, your account balance is minus 40%. In my opinion, it is insane to use this risk. The most professional traders use a risk of 0.5 – 1,5% of their portfolio for one trade. From my experience, you will get hard emotions by losing a huge amount of money in a short time horizon or a few trades.

First of all, it sounds like a hard process to invest only 1% or less of your portfolio, but with a steady and continuous trading strategy, you will earn a lot of money in the future. For example, if you make a profit of 2% every day, the account will grow very high in a few weeks.

Martingale for the False Breakout Binary Options Strategy

For better results, you can use the popular “Martingale Strategy”. If you lose your trade, you can double your investment or use more than 2,3x of the last investment in the next trade. This is very risky, but with a successful strategy, it is a good way to work with. In my opinion, only experienced traders should use “Martingale”.

A martingale can blow up your account in a few trades. I only use it when I feel very safe for the next trade and I recommend that.

  • Use sensible money management (I prefer to risk 1-5% per trade)
  • Martingale is a good way for experienced Traders (double the trading amount if you lose)

Attention to Market News

Another point of successful trading is the market economic news (picture below). A lot of traders use this economic news to trade the market. In my opinion, it is like gambling, because you do not know the result of the news. In addition, you are to slow to react quickly when the news appears. Orders are triggered in less sen 0,01 seconds. There are automatic trading programs which are faster than you!

In conclusion, it is not a good idea to trade economic news. My advice to you: Stop trading 10 minutes before and after the news. The volatility is very high and in most cases, the market will jump right over your screen. The market does not care about the numbers, because they are priced in already.

I use the economic news of www.investing.com. You will get the right news 0,1 seconds after they are released.

Get started – Use a good Binary Broker for your Strategy

In the table below you will find the best Binary Options Brokers. It is very important to use a broker with good charting software. You have to analyze the candlesticks/chart for the false breakouts. It is useless to trade a successful strategy for a bad broker because maybe they do not pay out your profit. I tested several brokers and recommend them on my website.

You can create a demo account to practice this new method of trading the markets. My recommended brokers offer you a free and unlimited account. The conditions are the same as in the real money mode.

Another relevant point is the trading software for the execution of your trades. You should analyze the chart in the best way you can. Use the candlestick- or line chart. I recommend the candlestick version. The drawing tools are offered by the platform and you can start in a few seconds.

Facts for a good broker:

  • Regulation
  • Free demo account
  • High asset profit
  • Flexible trading platform
  • Good service and customer support

The brokers below give you the highest yield and the most functional platforms for your trading:

Best Platform
Highest Yield
Best Support

Broker: Review: Regulation: Yield: Advantages: Open Account:
1. IQ Option (5 / 5)
Read Review
CySEC (EU) up to 100%+
2. Olymp Trade (4.8 / 5)
Read Review IFC 92%+

Huge diversity
High Yield 92%
Bonus Program 3. Expert Option (4.8 / 5)
Read Review VFSC, FMRRC 90%+

Good Platform
Account Types
Good Education

Conclusion of the Best Binary Options Strategy for beginners

On this site, I have shown you how it exactly works to make a profit with Binary Options. Just use the false breakout strategy. First of all, it is important to practice this strategy. You can use a free demo account to trade with virtual money.

Follow the next steps:

  1. Find a good level in the market. This can be a big low or high. You can use support and resistance lines, too. These are more highs or lows in a row on the same price. New and fresh highs/lows are working well for this strategy
  2. Wait for the break of the level. Sometime the market will never break your level. This is no problem because there are enough opportunities in the market every day.
  3. If the breakout is done and the market comes back to the level you can do a call or put option. (it depends on the breakout direction)

The strategy is very flexible. You can use it with any timeframe, asset or market. You just need a blank chart of candlesticks or line and a horizontal drawing line tool for trade successful trading the markets. On this website, I showed you how the market works on highs and lows. With this knowledge, you know more than 95% of the traders in the world. Good luck and happy trading ;)

Smart Break Out Strategy

Just a piece of thought before this article commences. There is no such thing as a simple strategy for binary options. If strategies were simple then you and I would be easy millionaires. When you search online you will actually come across dozens of strategies with “Simple” in their names. However, only a few actually are as true as they seem. Trading for forex, futures, and binary options is not simple and if you believe in just any strategy then you might be up for a financial suicide. How about you try a strategy with a word “Smart” in it? If you want to earn more profits in binary options you can try Smart Breakout Strategy. The author definitely did a great staying true to its name.

KNOWING MORE ABOUT THE SMART BREAK OUT STRATEGY

The Smart Break Out strategy is typically used for forex trading but it can also be used for binary options trading. It aims to generate small gains regularly in currency pairs that are actively traded. It is also based on every day price movements. Four possible scenarios make up this strategy. The first scenario happens daily despite of market factors. Its author presumes that present price can perform with regards to the previous day’s price in a single out of 4 other ways. The first way is that prices today can break the high of yesterday price. The second way is today’s price shall break the price of yesterday’s low. Thirdly, today’s price shall break yesterday’s high and low. Lastly, today’s price shall not break the low or high or the action yesterday.

The first and second scenarios are probably winners. When the price breaks the low or high the plan is to trade in the breakout’s direction. When price breaks, high buy calls with hourly expirations or daily expirations. When price breaks low, buy then puts with daily or hourly expiration. However, during days with no break, then trade is not possible. On days were price breaks the low and high then there is a probability of a bad trade. The fact behind this is that you can pick a greater amount of probably winners which is around 80% and then earn profits are a quite unclear set point.

WHY IS THE SMART BREAK OUT STRATEGY GOOD?

In the world of trading, breakouts are very well respected. The problem when it comes to looking for the best and simplest break out strategy is that there are a lot to choose from. However, the one thing break out strategies have in common is that they are not too easy to use. Most of them require some deep learning on the theories of trading including its technical analysis. The Smart Break Out Strategy is simply good because it is quite simple to follow. It starts with a good basis and provides easy entry criteria. There is lesser room for doubts which is where a lot of novice traders often lose a lot of cash.

WHY IS THE SMART BREAK OUT STRATEGY BAD?

For one reason, this strategy is not so appealing because it is very simple. Some traders won’t actually believe that its simplicity can work. It leaves room for doubt. It is also not so good because it is so similar to another strategy called scalping strategy. Scalpers use recurring small movements of underlying assets to gain profits. Scalpers need to trade many times in one day so that they can be profitable but opening them up to more risks. The Smart Break Out strategy is also not so good because it is also a very basic strategy. Traders have to keep up with the markets in a day to day or even hourly level. Something than no one actually likes to do a lot.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker!
    Perfect Choice For Beginners and Middle-Level Traders!
    Free Demo Account! Free Education!

  • Binomo
    Binomo

    Honest broker!

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