Scalping is an effective strategy with a 60-second “got trade” period. It works within a trend reversal model, traded only on selected low or high shoulders. Identifying oversold or overbought peaks, followed by the movements on the charts changing is the essence of the method. There is one of the most suitable strategies for novice traders because of its simplicity, minimum risk and high accuracy.
- Complexity: simple;
- Got trade period: 60 seconds;
- Forecasts accuracy: up to 90%;
- Additional indicators: available;
- Chart type: candlestick;
- Appropriate assets: futures, currency pairs, stocks.
Scalping works without an indicator, but its availability will minimize the number of binary options that have not been confirmed. You can use oscillators. If you are trading at the IQ Option, use Awesome or Stochastic.
How to trade on the basis of “Scalping” Strategy
Roll the chart back to determine the emergence regularities of bullish and bearish trends. Draw a coded line to start from it when you activate the binary options domain. The teleregister must be set up to a got trade period in one minute. If you scale the trading interface too much, it will be difficult to see the situation.
Make a prediction to “down”, when the next candle push through the conditional vertex as for the completed trends. If the price has fallen to a minimum rate regarding the previous falls, you can expect its growth. Look at the example. The transaction was recorded when quotations start a new movement after the disputed prices falling. Even in such questionable matter, there is a possibility for successfully trading with high forecast accuracy, as during the 60-second holding market often there is not enough time for changing trend direction significantly.
When is better to refrain from trading
Put the trade off or change the asset if the chart shows a relative calm. If the price increases or falls without noticeable fluctuations for a long time, it means you observe the global trend formation, which can last for hours. You can determine the emergency of such a shoulder in an easier way: reduce the chart scale to one day and analyze the situation. If the market presents the peak trend falling or moves up after stagnation, you need to change the asset.
Increasing trade accuracy
Turn on an indicator. You can take any oscillator or tool for testing the relative strength of the trend index. If you select Stochastic, make sure that the binary option entry point overlaps with similar indicators in the indicator body at the chart peak or falling. If the oscillator does not show oversell, but the chart shows a clear prices falling, perhaps you are watching just the ordinary correction.
Scalping is suitable for traders who prefer active trading. The necessity of constantly market analyzing requires concentration and outstanding patience. Trading can be compared with doctor’s work, who operates with a surgical scalpel because of 60-second strategies. You need to learn to be cold and calculating, be patient and high accuracy predictions will become your constant companion.
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future
GENERAL RISK WARNING