Concrete Entry/Exit Strategies

On the short term time frames like the hourly chart, the shortest expiration dates are preferred, but I would rule out the sixty seconds binary options based on the hourly chart as the time frame is quite big for that kind of a short expiration date. The following binary options can be traded based on the hourly chart:

  • options with extremely short expiration date: two minutes, five minutes, up to hourly expiration dates. Anything above should be treated on other time frames;
  • one touch options: identifying a range on the hourly minutes chart can be used in trading one touch options as ranges are being defined by price constantly crossing a specific level.

Based on the Ichimoku elements, the same strategies used when trading the five minutes chart can be used:

  • wait for the Ichimoku elements to indicate trending market conditions (cloud green, Chinkou above price and cloud, Tenkan above Kinjun and Kinjun above the cloud for bullish market; cloud red, Chinkou below price and cloud, Tenkan below Kinjun and Kinjun below the cloud for bearish markets). Once a bullish or bearish market is identified, look for the moment the Chinkou is approaching the candles in front of it and engage in buying calls if the market is trending to the upside or buying puts if the market is trending to the downside with the expiration date to be given by the distance Chinkou has to travel until actually meeting the candles in front of it. In a strong trending environment, this translates with Chinkou trying to avoid the candles in front of it and therefore a greater chance for the option to expire in the money;
  • look for Chinkou to be rejected when testing the top of the cloud in a transitory cycle after a bearish market or the base of the cloud in a transitory cycle after a bullish market.