60 Seconds Binary Options Reversal Strategy
I am going to explain how to trade 60 second binary options with pin bars and the oversold/overbought Laquerre BO trading indicator. This is a typical reversal strategy.
First off, what are pin bars?
They are candlestick patterns which are made up of one single candlestick with the following characteristics:
They often appear at the top of an up trend. Now, we’re looking to buy PUT options.
They often appear at the bottom of a down trend. Now, we’re looking to buy CALL options.
Binary Indicators: laquerre_BO (settings: gamma 0.25)
Time Frame: 60 seconds (M1)
Trading sessions: Euro and US Sessions (we need volatility)
Currency pairs: EUR/USD, GBP/USD, USD/JPY, GBP/JPY, EUR/JPY
GBP/USD 1 Min Chart Example (Open Buy PUT Option)
Buy CALL Option:
- Bullish pin bar formed (body near the top of the candlestick)
- Laquerre Bo back above 0.15 from below
- Buy Call Option at the open of the next bar
Buy PUT Option:
- Bearish pin bar formed (body near the bottom of the candlestick)
- Laquerre Bo back below 0.75 from above
- Buy PUT Option at the open of the next bar
As the strategy name suggests, 60 seconds expiry time for both buy and sell signals.