Many trading strategies are based on non-indicator trading methods and this makes them very simple, but highly effective tactics for earning money on binary options. Our today’s strategy is built on support and resistance lines as well as the famous Pivot Points, which are able to identify trend reversal points.
Working in a pair, the above tools have shown very good indicators!
To start with Finmax, we will need the Hammer Candlestick pattern. This is a fairly common candlestick pattern that signals the trend reversal. In general, the analysis of Japanese candlesticks is a very strong thing, so we strongly recommend you to master this science.
The graphic depicts the Hammer as a candle with a small body and a long shadow, which is located only on one side. The above screenshot shows a classic pattern of the Hammer, which signals the price rise in the future.
There’s also an Inverted hammer candle the Shooting Star. Such a candle indicates that the trend will change to a downward one.
Now let us move on to the rules of building support and resistance levels. Beginners can sometimes find it difficult to build these lines on their own. But it is not necessary to do it at all, because there is a Pivot Points Standart indicator, which will draw them for you.
We will enter into transactions based on the principle of forming these patterns near key support and resistance levels.
A hammer candle has formed near the support level. This is a strong sign that from the next candlestick the asset will start to rise. In the end, it turned out to be so.
Well, for downward trading, the situation is completely opposite. We have to wait for the Sinking Star candlestick to form near one of the resistance levels. In this case, starting from the next candlestick after the closing of the signal candlestick, we open a down trade.
As for timeframes, this strategy is absolutely universal, which allows us to analyze charts at any intervals. However, it is recommended to work at older intervals – from 15 minutes. This will avoid market noise.