One Touch Binary Options Strategy
Why trade Binary Options?
Binary options trading has been gaining popularity gradually and attracting all kinds of traders from novices to those who have ample experience and are well established market players. The reason for this can easily be attributed to the fact that using proper market research tools, careful analysis of various factors that might influence your trade and then placing your trades are bound to give you high returns in addition to minimizing your risks. Using all these factors a trader can generate high profits which may go as high as 150%; thus trading in Binary Options an excellent choice.
Binary Options Strategies
There are many trading strategies available to trade in Binary Options. Though it is not necessary that a strategy which is good for one trader is good/bad for every other trader too, it is for you to understand each and find a strategy that works best for you.
What is One Touch Binary Options Strategy ?
This is an exotic option where a trader sets a predefined value that his asset is going to reach or “touch” within the time frame that the trade is active or till the trade expiration point. This is one of the binary options strategies that is pretty simple and yields high profits if your trade touches the predefined point before the expiration of the trade. This is a high risk strategy if used randomly; but a very effective and high yield strategy when used with proper understanding.
Understanding One Touch Binary Options Strategy
Say for example, you have a EUR/USD pair trading at 1.2500. After studying the markets you reach a conclusion that looking at the way the currency price is moving, it is going to touch 1.2400 within the next one hour and you have accordingly placed a 60 minute trade on the EUR/USD pair trading at 1.2500 which is set for a payout of 150%. Now all you need to do is sit back and watch! After about 30 minutes, when you see that the price of the asset reaches/touches the predicted price, it means you have ended in the money and you get a payout of 150% within 30 minutes only. In essence, if you placed a $100 trade, then you get $250 at the end of the trade following this simple One Touch Binary Options Strategy .
Advanced One Touch Binary Options Strategy
The success of One Touch Binary Options Strategy is dependent primarily on two factors: market volatility and direction of the market. It is important to be able to predict both these two factors accurately to get a winning trade; because if you know that the market is going to explode and have no idea about the direction then this alone will not help. To help predict the direction you can use support points, averages manipulations, patterns isolation etc., and for predictions of volatility ATR (Average True Range) can be used. The ATR techniques consist of Average True Range (ATR), Parabolic SAR, and Relative Strength Index (RSI).