Concrete Entry/Exit Strategies

The four hours chart is one the most important time frames as, with most of the brokers it is associated with fixings. The London, New York and Asian fixings are exact moments of time when, for example, options on the regular options market are expiring and that makes the flows in the normal spot market to influence current price. The binary options recommended to be traded on the four hour chart are:

  • options with medium term expiration date: end of day expiration date can be used if price is reaching a specific level at fixing times, but 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 might be a way to go starting with this time frame as Ichimoku allows properly identifying potential bouncing/rejecting areas.

Based on the Ichimoku Kinko Hyo elements, the following strategies can be applied:

  • look for a market to be in a transitory cycle as explained earlier in this project;
  • wait for Chinkou (the green line to test the cloud);
  • look for a bounce if the previous market before the transitory cycle was bullish and a rejection if the previous market before the transitory cycle was bearish.