- Time Chart: Candlesticks display a unit of time
- Example: On a 1 minute chart each candle represents 1 minute
- I use FreeStockCharts.com for the candlestick charts
- As an alternative you can also try using a MetaTrader4 (MT4) broker
60 Second Strategy
- Trade 60 second binary options, trends with consecutive same colour 1 min candlesticks
- This requires judgement on your behalf to see the trend forming and acting on the trend to make a trade
- Look for 2-3 consecutive same colour candles on the 1 minute chart
- While the 3rd/4th 1 minute candle is forming (same colour), place a test trade
- The test trade determines one of the following:
- The trade win, so keep going until a loss
- The trade loses, wait, does the trend continue, trade, keep going on wins, stop totally on 2nd loss
- A trend lasts around 5-10 minutes
- Its rare for it to reverse right away. It’s more likely to trend sideways then trend again
- You need to know when to cease trading
Where to trade?
- Visit /brokers/ for the best brokers to trade 60 second binary options
- Top 5
Hello traders, this is Chris Morton from binaryoptions.education. In this video, I will be doing a tutorial, which is a strategy for 60 Second Binary Options. This is a very good strategy that has been used by a lot of traders to much success. So, let’s go through the strategy.
OK, first is a bit of background. You need to be aware of a time chart where this displays candlesticks Each candlestick displays a unit of time. For example, on a one minute chart, each candle represents one minute.
And you’re going to need some online tools, I use FreeStockCharts.com for the candlestick charts. Which I’ll just bring up, here. So, FreeStockCharts.com right here I’ve got both the AUD?USD charts in the top window, and the USD/Japanese currency pair in the bottom window.
As an alternative, you can also try using MetaTrader4, or MT4 broker. These are popular, and all used in forex brokers. Generally, you need to be on Windows-based platform, as it’s a downloadable program. If you’re using a Mac, you’re going to have to use a web-based stock chart.
As I just indicated before, it’s just a screen shot of a time chart. This is a one minute chart, so each candlestick represents one minute of time. Red is where the price is moving downwards, and the green is where the price of the stock is moving upwards, of the currency pair.
OK, so the 60 second strategy– so the strategy is to trade 60 second binary options, with the trend being with consecutive same colour one minute candlesticks. So whether that be three candlesticks going up in the green, or three candlesticks going down in the red.
Once you’ve determined that the trend has formed, that’s when we place our trade. You can be more aggressive, and maybe place a second forming candlestick, or even the first, if you have a good feeling that the trend is going the way you think it is. But once you’ve seen that trend, that’s when we trade. So yeah, this requires judgment on your behalf, to see the trend forming, and act on the trend.
So, let’s go through a typical scenario. I’ll just this window up a bit. Let’s go through a typical scenario. So first, we’re going to look for two to three consecutive same colour candles on the one minute chart. Whilst the third and fourth one minute candle is forming, with the same colour, this is where we place a test trade. So this is just to see– to try to confirm the trend.
So, based on the test trade we determine one of the following. The trade wins– if so, we keep trading until we get a loss. So, this trend could keep going for quite a number of minutes, up to 5-10 minutes so if it’s a strong trend, we want to trade. If the first test trade loses, we can wait and just see the trend does actually still continue, and try it again, and then keep going on wins. But when we get a second loss, this is when we stop.
A few notes– note that trends last for up to 10 minutes. Trends can be quite long, if there’s been a bit of news, on a press release, on a company that might shoot the stock up really high, or actually drop the stock if it’s been a report that hasn’t been favorable for the company, or some economic indicator. It’s also very rare for a trend to reverse straight away. It’s more likely to trend sideways, and then trend again. So if it’s in a bullish trend, you’re not going to see a bearish trend straight away. It does occur, but it’s very rare.
Usually, you’re going to see the bullish trend, then a little choppy sideways trending, and then another trend. You need to know when to cease trading so it’s like when you get that second loss, that’s when you have to get out of the trade altogether, and start looking for another trend to form.
OK, so I’ll go through an example here of some trades I’ve done, as I was writing this tutorial. This is one on the USD/Japanese chart. You can see here a sort of trend of three, this is a bearish trend. You see three one minute bearish candlesticks, then I place my trade right here, on the bottom of this third one, that’s when I got into the market and I actually won, because the next two candlesticks were also going down. Therefore, I placed a down call, and won the trade.
OK, another one that I also did was on the AUD/USD currency asset. I saw three red candles forming, and I got in on the bottom of the third candle, and actually won my trade here. As the next 60 seconds or one minute candle was also down. So I got in here, I placed my trade saying I think the stock is going to be less than it’s current composition, and therefore it went down.
I’ll bring up the window here. We’ll just go into my account, open trades, trade history and you’ll see here, the AUD/USD asset, I invested $24, the target price was 1.027 and the entry price was 1.0281, and I won the trade. You can actually see here, I actually did it half an hour ago, you can see here the one, two, three candlesticks I got in here, the next one I actually won on. The following candlestick, if I happened to continue my trading, I probably would have lost, but then you can see the next one again was going down, and another few candlesticks going down. So you could’ve placed probably up to five trades, maybe you would’ve lost one, but you would have won the majority going down.
Then you can see here, there’s a lot of sideways movement, so right now it’s really not a good time to be trading the AUD/USD in the 60 second format. You can actually see right now, another three candlesticks forming. I would actually now get in to this trade here, you can see it’s still forming, it’s actually going down quite a lot. I’d definitely get into this right now.
So, let’s actually do it, I’ve got it open. OK, so I go into 60 seconds, the Australia/USD, going to do a local, $24 is the minimum investment, click buy. Let’s actually see this in action. So this is my test trade, in inverted commas– this is to see the trend, to confirm the trend. So, based on this outcome, we’ll try it again– we might wait a bit to see if the trend is actually going down.
So I might’ve actually got in a bit late, here but it looks like the trend is actually going down– it’s going back up, 20 seconds to go, sort of following it here. I got in just near the bottom of this, so it looks like I’m going to win this trade, so I would actually trade again. OK so that’s one. So based on that outcome, you would actually trade again. So that’s a perfect example of a 60 second trade.
I’m going to see here– I put in $24, I’ve got my investment back, plus another 70% on that, so with a total profit of– including my original investment of $40.80. So you can actually see here, the trend is still going down. So if you’d traded again, you would’ve actually won again.
So, we’ll go back to my slide on my notes. So you see here, that was the one I was pointing out.
So where to trade? I recommend visiting my site, /brokers, for the best brokers to trade 60 second binary options. The top five brokers I’d definitely recommend are: Banc De Binary, they have one of the few brokers that is regulated, they’re regulated in two jurisdictions– European jurisdiction, which is out of Cyprus, which is the Cysec license, the FSA, which is the British or the UK regulatory body. Then Trade Rush, which is actually getting its Cysec license soon, same as Redwood Options. 24option is also going to be getting a Cysec license soon. And a relatively new broker, which is actually based out of Sydney, Australia, it has an ASIC license and also a British license, and it’s Enfinium.