In a previous article, the Big Ben Strategy for Spreads was presented. Whereas the Big Ben strategy is designed for spreads, the London Reversal is set up for binary options. Knowing the London Stock Exchange operates from 8: GMT, except on public and bank holidays, can prepare you for this new strategy.
With the time difference, this means the opening is at 3: The indicators will show you where the market is expected to move and the TC arrows will signal the direction of the trade. In the red box in the following image, it shows the movement caused by the London Opening.
In the Deviation area of the chart, note that a black line formed, meaning that a full deviation move had happened sometime during the day signally a valid trading day. Wait for the lava to be receding and not hugging the blue line before entering your trade.
Remember this is a deep in the money strategy where you want to enter around if buying, possibly as low as 70 but definitely not an ITM strategy. It was held until expiration and settled at 1.
You can see how the signals were all there. The rules were followed and the trade was profitable. Always try a new strategy in demo before going live. Once you are comfortable with the strategy, to increase your profit increase the number of contracts. To learn more about any of the indicators mentioned for this strategy, go to www.
There you will find traders willing to help you perfect this and other strategies. The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
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Contribute Login Sign up. Benzinga - Feed Your Mind. New Binary Option Strategy. Darrell Martin , Apex Investing: The source for trading Nadex. November 22, This simple strategy has only a handful of rules. A Full deviation move on the deviation tool makes it a valid trading day. If no black line, indicating a full deviation move, has been formed or crossed, there is no trade for that day.
Click HERE to view a larger image. The Izone is for confirmation you are taking the trade in the right direction. The image below shows how the trade played out. Jim Strugger's Bullish Micron Trade. View the discussion thread. Doesn't see big risk of Japan's financial system destabilising via ForexLive Australian GDP misses, and the market punishes.
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