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high-low-and-average-price-strategies

Even the most basic of asset price charts are going to allow you to see the highest, lowest, and median price of an asset for a specified period of time. There are many different ways in which you can turn this information into profitable binary options trades. Below are some of the easiest strategies to pair with these three types of price action.

Although it is entirely possible for the price of an asset to exceed its all-time high, such extreme price movement certainly is not going to occur every day. With this in mind, try to locate assets that have prices that are close to their record high and then look for the inevitable pullback. Once noted, you could then enter into a PUT position based upon a predicted price drop.

Pullback refers to price movement which is working to pull the asset price back to it’s average price area. Every asset has this comfort zone, and even after moving well out of this zone, the market will naturally work towards pulling the price back into this range. Technical analysis may show this occurring, but fundamental analysis can also tell you when to expect a pullback to take place.

The same strategy can be applied with any asset that is near its record low or high price. At some point there will be a change in market sentiment that sends it climbing or descending, at which point you can enter into your positions. Again, you’ll be relying upon the natural price movement back towards the comfort zone. During these movements, either upward or downward, you may be able to enter into a number of profitable trades, especially if you choose to utilize Sixty Second trades.

The average, or median price, can also provide opportunities via the No Touch trade type. Here, you’ll want the asset price to be stable so that it does not touch the target price while the trade is live. When trading with this middle ground, you must ensure that no market reports relating to your selected asset are going to be released while your binary options trade is live. You simply do not want anything to send your asset price into strong motion.

With the highest and lowest prices, consider trading breakouts when the situation is optimal. A breakout is the point when the all-time high or low price point is exceeded. It does take some strong market sentiment to cause breakouts, but the good news is that major news isn’t likely to pass you by (assuming that you’re keeping yourself up-to-date with the latest reports). Since breakouts are not extremely common, the offered return rate on such trades can make for some very profitable binary options trades.

(SS)

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