Intermediate Course

The 200 binary options course video series are lessons for intermediate to experienced traders looking to learn more about the finer concepts. This series includes various strategies for binary options trading from a technical and fundamental point of view.

BO201 Lesson – Fibonacci Retracement
There are many trading tools that can be used to help us analyse financial markets. One of the most reliable of these tools is Fibonacci Retracement. In this video Sam covers the basics of Fibonacci Retracement and how it can be used effectively to trade binary options.

BO201 Lesson – Fibonacci Retracement Transcript

-Welcome to our Binary Options 200 training series. We going to start off the series with Binary Options 201: Fibonacci Retracements. If you haven’t viewed our Binary Options 100 training series, I suggest you do so now, as it’s well worth watching. Both series– Binary Option 100 and 200– are brought to you by binaryoptions.education.

Fibonacci retracement. So who was Fibonacci? Leonardo Fibonacci was a famous Italian mathematician. And he discovered a simple series of numbers that created ratios to describe the natural proportions of things in the universe. And these ratios can be used as a trading tool.

So why do we use Fibonacci? Well, Fibonacci retrenchment is used by many professional and retail traders and because of that fact, it is self-fulfilling. How was Fibonacci used? Fibonacci is used as a trading tool to identify the end of a retracement or a pullback in price, and can be used to join market rallies.

Where price moves in the general upwards direction, price up-trends. When price moves in a general downwards direction, price down-trends. And price creates this step promotion, which is a series of pushes and pullbacks, or rallies and retracements. So with a down-trend, we can have a rally to the downside, a retracement, a rally, a retracements, and do forth.

With an up-trend, we can have a rally and a tracement, or using different terminology, a push and a pullback, a push and a pullback. So once we identify a trend, obviously the ideal place to join the trend is these troughs on an up-trend, and the peaks on a down-trend. Here is your ideal area to place calls, and here are your ideal areas to place puts, as price moves strongly in the direction of our binary option’s position.

So Fibonacci retracement provides a series of levels which act as potential areas of price reversal, or potential levels of where every tracement will become a rally, or a pullback becomes a push.

If you could imagine this black line is an up-trend, we’ve had a retracement, followed by a rally to the upside. Now price is pulling back, or retracing again. We would use the Fibonacci retracement tool to measure the start and end of this rally, or push, and then the Fibonacci tool will automatically calculate these ratios for us. And each of these levels is a potential level where price would reverse, the pullback would end, and price would go for another push.

There are five levels, or ratios, but the middle 3– 0.382, 0.500, 0.618– are the most commonly used levels, and these can also be expressed as percentages.

This is an hourly chart of the dollar Swiss Franc. Price is down-trending. We have a rally the downside, a retracement, a rally, a retracement, and a rally. If we were to use Fibonacci retracement from here to the end of this rally, you’ll see our fib levels. And as mentioned, the most common are these middle three.

As price retraces, we reach the 0.618 Fib level, price is rejected. We have a bearish engulfing, and then we have strong downward momentum as price goes for another push on the downside. So once this has been identified, we then have a number of opportunities to look for signals to place puts, as we know the momentum is going to be on the downside.

This is a four hour chart of the pound against the dollar. We have a clear up-trend, a push, a pullback, a push, a pullback, and another push. Let’s use our Fibonacci retracement to mark the start and end of this push. We will look at our three main levels, you’ll notice our first level, 0.382, is reached. Price is rejected. We have an engulfing candle, a bullish engulfing, and then price reverses and goes for another push.

One of the keys to Fibonacci retracement is to identify signals on a Fibonacci level such as pit bard, rejection, our Fibonacci levels, and engulfing candles. Instead of purely using a Fib level by itself to place calls our puts. As always, check out our website, and continue to watch these videos.

BO202 Lesson – Support and Resistance
Added: Feb 28th, 2014

Support and Resistance is a basic, but fundamental, trading concept. Sam teaches horizontal support and resistance and dynamic support and resistance.

BO203 Lesson – Trend Lines
Added: Mar 07th, 2014

An overview of how trend swings can create support and resistance. As with all support and resistance, trend support and resistance is highly effective and is widely used by many retail and corporate traders.

BO204 Lesson – Market Types
Added: Mar 07th, 2014

An insight into ranging and trending markets, and how both markets can be traded.

BO205 Lesson – Pattern Formations
Added: Apr 04th, 2014

A presentation of the common patterns price creates in financial markets. An overview of what these patterns are, why they are formed, and how they can be traded.

BO206 Lesson – Stock Chart Setups
Added: Apr 04th, 2014

In this video Sam Morton gives some examples of reliable chart setups to use when trading binary options.

BO207 Lesson – Expiry Times
Added: Apr 04th, 2014

An overview of the expiry times offered by the major binary option brokers. Sam gives his own opinion of what expiry times to use and which time frames to analyse.

BO208 Lesson – Trading News for Binary Options
Added: Apr 04th, 2014

A follow-on from BO112. In this video you will learn how to read scheduled news forecasts and trade using announced economic figures.

BO209 Lesson – Hedging Strategies: Minimizing Losses & Reducing Risk Exposure
Added: Apr 04th, 2014

A video to help traders reduce losses and have stronger money management skills. This video demonstrates how to hedge ranging markets and the benefits for doing so.