The 5-minute Blossom trading pattern for binary options

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The 5-minute Blossom trading pattern for binary options

The 5-minute Blossom pattern for trading binary options

For those who love short-term options, we offer a trading system called Blossom, which can bring very impressive amounts of profit. Thanks to a fine combination of effective technical indicators, the signals of the strategy are timely and accurate and ensures 87% of trading deals close with a profit. In addition, since the system is very simple to apply, newcomers can easily work with it.

The accurate tactics Blossom, 5 minutes of binary options: technical parameters

The technical side of this strategy includes three automatic indicators that determine the trend and foresee its upcoming turns: moving average (exponential type), Bollinger Bands and RSI. Such a combination may seem unusual, but this approach to trading guarantees an almost 100% accuracy of determining the time and direction of market turns, allowing to enter the trade with a serious advantage. As an indicator of trend and volatility, Bollinger Bands are the first to show market turns by forming the classic signal in the form of a rebound of quotations from the channel boundaries. Following the BB, MA indicator (type Exponential) also generates a trading signal that will show the direction of the next turn. The RSI indicator will add an unambiguous confirmation of a new short-term trend, on which it is possible to conclude a deal with a 5M expiration, to the complex trading signal.

So, since this system is an indicator-based system, the main condition for its use is a professional trading terminal with a built-in set of indicators that the strategy requires with corresponding settings. On such a platform, the system will show the intended efficiency. When preparing the article, we chose the trading terminal of the Binomo broker as a perfect example of such a platform. It features all the necessary functions and tools for the most effective use of the Blossom strategy.

How to build a template

From the indicators available on the terminal we choose the following names with the necessary configuration to set on the chart:

– Bollinger Bands, standard settings;
– MA, Exponential, type; the movings periods of 3 and 5 (the color of the senior moving is blue);
– RSI, standard period, the marks of extremes are 50/50.

The timeframe of the chart is M1. We recommend to choose a basic asset with high volatility, and trade only in day time. After all the necessary settings are set, we get the following picture:

Signals of the 5-minute strategy for binary options Blossom

So, you’ve created the technical template. Now you need to wait for the main trading signal to appear: the quotes touching the channel frame of the Bollinger. Then, when the moving average lines intercross, wait for the RSI indicator to confirm the signal and then immediately enter the market — open a deal in the direction, forecasted by the three indicators.
Open an UP deal (CALL option) when:

– The quotes touch the bottom frame of the Bollinger channel and make a turn for growth;
– EMA lines intercross with an upward slope;
– Moving RSI move above the trend level 50.

Open a DOWN deal (PUT option) when:

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– The quotes touch the upper frame of the Bollinger channel and make a turn for decline;
– EMA lines intercross with a downward slope;
– Moving RSI move below the trend level 50.

Expiration and Money Management

This strategy was designed for a 1-minute interval of the chart, so we do not recommend using it on timeframes of several seconds. Taking into account the actual continuity of the trading signal, the optimal expiration of deals is from 5 to 10 minutes, depending on the current level of market volatility.
To reduce the risks, it is best to follow the classical rules of risk management, limiting the amount of the option to 5% of the volume of the deposit. Trading only 1-dollar options, available at the Binomo broker’s platform, will allow to reduce the amount of risk when working with modest trading funds.

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

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 Strategy

5 Minute Expiry

Finding a highly profitable short term trading strategy if often difficult, even for the most experienced of traders. Considered an ideal introductory timeframe for new binary options traders, a 5 Minute strategy offers traders the opportunity of high frequency profits as a result of at least 20 trading opportunities per day.

5 Minute Binary Options Strategy

Considered a short-term contract, the 5 Minute Strategy refers to a trade which expires in just 5 minutes. Ideally charted using 1 minute price bars, a 5 Minute strategy traditionally is most profitable on either high volume stocks or low volatility currency pairs. That is, using a 5 Minute expiry, binary options traders should consider trading stocks such as Apple, Twitter, Yahoo or Amazon while low volatility currency pairs may include EUR/GBP, NZD/USD and EUR/CHF. Trades of 5 Minute binary options result in one of two possible outcomes: a win of a predetermined profit % or a loss of the investment amount.

Trading Retracements

A price retracement is a temporary reversal in the direction of an assets price that goes against the prevailing longer-term trend. The retracement does not signify a change in the larger trend but rather is a short term dip (and reversal) in price. A 5 Minute binary options trader can successfully trade price retracements for profit using trading tools such as Fibonacci Retracement patterns for price confirmation.

Fibonacci Retracement

Used to determine support and resistance levels, Fibonacci Retracement is a very popular tool used among technical traders and is based on the key numbers identified by mathematician Leonardo Fibonacci in the 13th century. Most successful in identify potential price retracement points, Fibonacci Retracement levels are created by drawing a trend-line between two extreme points (swing high and low) and then dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%.

Fibonacci Retracement Levels

A 5 Minute binary option traders must determine Fibonacci Retracement levels to identify high probability trade opportunities.

To do this, when price is trending upward or downward, longer term swing high and swing low data points are identified on the price chart as well as Fibonacci points 0.382, 0.500, and 0.618. These numbers represent how far price could retrace in percentage terms.

That is, after a significant rise (or fall) in an assets price, prices usually go back (retrace) to their previous levels. It is during this return movement that prices often meet support and resistance levels at Fibonacci retracement levels (or close to them).

On the upside, when the price breaks through a resistance level, this resistance level then becomes a support level. Conversely, on the downside, when price falls below a support, this support levels then becomes a resistance level.

Fibonacci Retracement Trading Signals

For 5 Minute binary options traders, Fibonacci Retracement support and resistance levels can be used for determining buy and sell points.

A trader will typically place a buy (call) trade on a retracement at a Fibonacci support level when the market is trending upwards, sell (put) on a retracement at a Fibonacci resistance level when the market is trending downwards.

Reversal Pin Bars Confirmation

Pin Bars are considered a very reliable reversal candle pattern and when combined with the Fibonacci Retracement tool, assists 5 Minute traders with identifying high probability trade opportunities.

For a clear Call or Put trading signal, binary options traders should await a bullish (or bearish) reversal pin bar registered in close proximity of a key Fibonacci Retracement level such as 61.8%. The larger wick and/or candle body confirms a price reversal, with price excepted to continue in the direction of the previous (or prevailing) trend.

A 5 Minute expiry Call (or Put) trade placed at the bar following the reversal pin bar signals a high probability opportunity for profit.

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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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