Vfxalert Strategy For Beginners - Reversal Trading Strategy

In binary options trading, we must accurately predict the price movement of an asset to make a successful trade. But speculating on price changes is not easy because binary options trading is a volatile market, and a price trend reversal is not impossible.

In a previous article, We discussed that opening a deal with binary options signals is the easiest way for a beginner to make money trading. However, after several unprofitable signals in a row, there may be some questions arising - according to what strategy does the service work?

The answer: No one can give 100% profitable signals every time We make transactions, knowing how they are generated, you can significantly reduce losses.

You need to know that even medium-term and long-term trends, will always end. It won't always be that trend. "bullish" and "bearish" resources are not enough to raise a price (overbought) or (oversold). Another reason for a stopping trend may be the presence of strong news publications and fundamental statistics, especially for intraday trends or daily trends.

A market reversal can occur quickly during 3-5 price bars or after a period of consolidation. Reversal strategies give fewer signals than trending ones. For trending markets, you can use "TREND TRADING STRATEGIES".

Reversal Strategy

As practice has shown, they are more reliable because there is a high probability of opening an option at the very beginning of a new trend, and not at the end of the movement when the top binary options signal S becomes false.

Disadvantages of reversal strategies:

after a long trend, overbought/oversold oscillators such as RSI and Stochastic can "trample" for a long time in critical areas or close to level 50 without cutting them. The strategy does not give signals, although a reversal has begun. Always look at the chart if the reversal is clearly visible, especially after the "Doji" or "Pin-bar" candle pattern, you can try to open an option with an increase in expiration.

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