Strategy: Horizon based on the principle of price rebound from market levels

Strategy: Horizon based on the principle of price rebound from market levels
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One of the most effective ways to create market forecasts is to use various methods of technical analysis in option trading.

We will talk about the Horizon trading system based on the principle of price rebound from market levels.

In this case, we will talk about price horizons when trading intraday. This method also uses an additional indicator-filter MACD, which determines the moments of quotation reversals of the underlying asset.

According to statistics, this system gives high trading results, allowing you to conclude approximately 85% transactions with a long expiration period.

Setting up the Horizon trading system

To build an intraday price horizon, we need to draw a line along the quotation extremes of a financial asset.

For this process, we can use any graphic line, but it is best to use the special service "Horizon" on the platform of this broker.

With the help of this service, we will be able to build a non-dynamic line, which will be on the price chart until we ourselves want to remove it.

Tool: Horizon on the Binomo trading chart

Thus, excellent opportunities open up before us. During the week, we will be able to build the main levels of trend movement with the help of horizons, and then effectively apply them in trading on the stock exchange.

The trading template of our Horizon trading system consists of price extreme levels for the day of trading and a classic oscillator - the MACD indicator.

Before we move on to receiving signals to trade on the system and applying tactics in practice, we want to draw attention to the importance of the issue regarding the correct choice of a financial company.

When solving this issue, it is important to take into account the requirements of the exchange market and trading methods, and, of course, the issue of managing financial risks and capital.

The first thing you need to pay attention to when choosing a broker is the trading conditions and technical capabilities provided by the company:

  • Advanced trading software with a set of technical and graphical tools for market analysis - indicators and graphical tools;
  • Accurate quotes of the underlying asset;
  • A wide range of financial instruments, the list of which includes various underlying assets: currencies, stocks, raw materials, commodities, indices;
  • High profitability of options;
  • Loyal conditions for trading;
  • Funds must be quickly withdrawn and credited to the trader's trading account.

These parameters are perfect this brokerwhich offers customers the following features:

  • Trading platform of our own design with the necessary technical equipment;
  • Quotes of financial instruments are supplied by a reliable company;
  • There are over 80 underlying assets, which include financial instruments of the commodity, stock and commodity markets;
  • The profitability of options reaches 87 percent;
  • Optimal conditions for trading, allowing you to trade when replenishing a deposit of $10 from rates of $1;
  • Monetization of profit occurs within one day, funds are instantly credited to the trading account.

Horizon Binary Options Strategy Signals

Deals UP we conclude when the lower intraday price horizon touches and rebounds from it. Also on the MACD oscillator we are waiting for the formation of the intersection of its lines in the upward direction. A binary option with an UP direction is executed when a complete list of signals for trading on the system is created:

Buying an option up

Deals WAY DOWN we conclude when the upper intraday price horizon touches and rebounds from it. Also on the MACD oscillator, we are waiting for the formation of the intersection of its lines in the downward direction. We buy a binary option with a DOWN direction when all the signals on the trading system match:

Buying an option down

When we see a pronounced breakdown of the price horizon, we urgently need to rebuild the level in relation to new market highs and lows, continuing to trade on the listed trading signals.

When applying a bounce from the price horizon and a reversal pattern of the MACD technical indicator at the time of the conclusion of transactions, we get a great way for intraday medium frequency trading.

As practice shows, the system creates only 1-2 trading signals per 1 hour, however, due to such accuracy, a good profit is obtained.

Choice of expiration time

When trading with the Horizon binary options strategy, it is best to use options with an expiration time of 5 to 15 minutes.

This time range is the most efficient for executing trades.

Management of risks

When calculating the level of financial risks, we pay attention to the size of the deposit. This rule works here - with large amounts of funds in the account (over $ 500), bets should be made no more than five percent of the total deposit.

With small deposits, rates should be taken as minimal (for example, this company - this is only 5$).

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