The daily chart is at the limit of being considered long term time frame and starting from this time frame even binary options with short expiry dates can be traded as the Ichimoku elements starting with this time frame offer good support/resistance areas. The binary options recommended to be traded on the daily chart are:
options with medium/short term expiration date, like end of day would be the preferred expiration date here because when price is trending in a bearish market and is reaching the Kinjun on the daily time frame then there is most likely the closing to be below Kinjun. Depending of the moment of time during the day such a thing happens, the expiration dates can differ from short to medium term expiration dates.
- options with medium term expiration date: my recommendation would be here to look for either end of week (if the analysis is made at the beginning of the week) or one week expiration dates;
- one touch options: ideally to be traded when specific patterns appear on this time frame, like contracting triangles, pennants, etc. This kinds of patterns allow time to be taking into consideration and therefore the expiration date can be set easily;
- using the option builder tool to customize your binary option.
Based on the Ichimoku Kinko Hyo elements, the following strategies can be applied:
- identify the cycle the market is in: bullish, bearish or transitory;
- in a bullish cycle, look for long positions (buying calls) whenever price is reaching the Kinjun line and the base of the cloud before the Kinjun/Tenkan lines to cross;
- in a bearish cycle, look for short positions (buying puts) whenever price is reaching the Kinjun line and the top of the cloud before the Kinjun/Tenkan lines to cross.