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Video Binary Option Strategy Using PSAR from BinaryOptionStrategy.com (Binary options rsi)
Get more from your trading at: m In this video we discuss how you can make a strategy from a relatively unused indicator to.
Hello,This is Daniel Grady with BinaryOptionStrategy.com and today we're going to be talking aboutan often neglected indicator: PSAR.Parabolic Stop and Reverse got a bit of a bad reputation when applied to forex, butit has a unique strength that makes it good for binary options.Most trading software include it as part of the standard configuration, and it's oftenlabeled as Parabolic S-A-R.Let's start by showing you how it's supposed to work.This is your typical chart which could be any asset, such as currencies, stock market,whatever. This strategy is pretty sociable and works good with pretty much everything.If we add a PSAR indicator, it will show up as dots above or bellow the candles. Eachdot is tied with the candle that is above or bellow it forming a pair.The basic idea is that when the market is above the dot, then it is expected to go up.If the market is below the dot, then we can expect it to go down.Pretty simple, right?Now, if you look at the chart closely, you can see that it's only showing short movesin the market, which wouldn't be all that useful for a forex trader. But as a binaryoptions trader, all we want to know is if the option will expire in the money. A shortmove is right down our alley.But, you'll also notice that the dots form a pattern, and this is how we can turn thisindicator into a useful binary options strategy.What we are looking for are times when the dots are moving in the same direction as theindicator. In other words, if the dots are above the market, showing that will go down,then we want to see a pattern where each
dot is lower than the previous one.That shows us that not only is the market going down, but it's likely to keep goingdown for a while and we can buy a put.The same applies in reverse for a bullish market. In other words, we want to buy callswhen each dot comes in above the previous one.To get the most of this strategy, you want to track the market in a timeframe that'sa third or as close to a third of the expiry time of your options.What this means is that if your options expire every fifteen minutes, you want to track themarket in a 5 minute chart. Or, if your options expire every hour, you'd want to track themarket in a 20 minute chart. Sometimes 20 minute charts are not available, so you shouldsubstitute with the closest timeframe, for example, 15 mintues.Of course these moves don't last forever, and will eventually shift in the oppositedirection. This is why when using this strategy, you want to get in on the market when it shiftsdirection and ride it as it goes in your favor.The ideal situation is to wait for the dots to switch sides and wait for two or threedots to confirm the move, and then jump on the market.This strategy has the additional advantage of being easy to combine with other strategies.But we'll get into that in a later video.And that's it for the Parabolic SAR for today. Don't forget to suscribe to get the latestinfo on the markets and more binary option strategy videos. Thanks for watching and happytrading!
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