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Trading Strategy For 2M Duration Using Williams Indicator

Binary Options Trading Strategy Using the Williams Indicator

The Williams indicator is a technical tool developed by Larry Williams to identify whether a market is overbought or oversold and therefore to determine possible turning points. This strategy would be better to use in manual and automatic binary signal pro strategies. 

In this strategy you can trade on any binary options broker, to profit from any asset, as in this example We
will provide an explanation in the pocket option platform.

Trading platform

First, choose a broker in the vfxAlert program or you can register on the pocket option receipt website, and register via E-mail/password:

Pocket Option

Choose a demo account to test binary options signals. We always recommend and do this before placing it in a real account.

Pocket Option

Binary options strategy characteristics:

  • Type: Trend
  • Term: M2. Technical analysis has started to work correctly, a steady trend appears for 15-20 minutes.
  • Trading assets: All Forex currency pairs and cryptocurrencies. The main requirements are fixed spreads (2-3 points) and no hidden fees.
  • Trading times: All trading sessions.
  • Suggested expiration: 10-15 minutes.

Install in your graphic:

Alligator Indicator

Bill Williams trend indicator, with which we determine the opening point of the option. You need to know that this strategy is not intended for trading during flat periods. We trade only if the range is at least 15-25 points.

Williams Percent Range Indicator (Williams %R)

All indicators on moving averages must be confirmed by oscillators indicating an overbought state when buyers can no longer raise prices or oversold when there is hardly anyone in the market selling at a lower price.

The market is overbought when the indicator is above or near the 20 levels. Oversold at the 80 levels.

Awesome Oscillator (AO) Indicator

The oscillator should finally confirm the options signal. Additional signals can be obtained using the intermediate level in this case, Williams Magic Oscillator will also function as an indicator of overbought/oversold conditions.

After you install the tool, the working terminal window will look like the image below:

Binary options trading signals:

How to make a HIGHER purchase

The moving average of the alligator is directed upwards, the price must break through all of them and be above it. Williams %R must get out of the oversold area (level 80) or point pointing up. AO green and up.

How to make a LOWER purchase

Reverse condition: The moving average of the alligator is directed downwards, the price must break through all of them and be below it. Williams %R exits the overbought area (level 20) or downwards. AO turns red and goes down.

The following are examples of options trading signals

Here is a good example of how the Williams indicator works as a simple scalping strategy. "Hummer" reversal candlestick pattern appears, and the price begins to fall. However, the Alligator indicator continues to show a strong uptrend. Is this the beginning of the first uptrend reversal or correction?
what does the Alligator keep showing?

Let's look at the oscillator. Williams %R leaves the overbought zone. That is, there is a high price at the level of the candlestick pattern, where potential buyers ended up in the past. The second attempt to break the maximum and continue the trend may not be successful, here %R serves as a binary signal

The Awesome Oscillator also confirms the change in the balance of power by the sellers (the red bar is at the high of the histogram). It is better to open a LOWER option, on which a profitable expiration is more likely.

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