Binary options strategy Japanese Martin from Olymp Trade proves that Binary Options are profitable.

There are a variety of ways to analyze the market. Today we’ll talk about patterns in binary options, to determine which you only need to have charts and the ability to use regular lines. No complicated indicators.

It will be very difficult to describe all the figures that are used by traders in binary options in one article. Firstly, there are figures that are not popular and we do not know the features of their construction. Secondly, remembering everything at once is unrealistic. Therefore, below we will talk about the most famous and effective elements of graphical analysis.

The essence of the Martingale strategy

It is a money management system originally used in gambling. After each losing contract, a new one is opened with a volume 2.5 times higher. As a result, even after a series of failures, one profitable option will cover all losses and bring income.

Often used by novice traders for guaranteed earnings. But, as a rule, the use of the system results in losses due to high risks. After doubling, the losses increase, but the potential profit remains unchanged.

To increase the efficiency of the system, traders use the New Martingale for binary options with additional application rules:

• trading only with the trend to improve the accuracy of forecasts;
• trading with assets that are easier to analyze: you should not work with cryptocurrency and other volatile instruments;
• opening trades according to strategy signals - entering into contracts at random is dangerous.

Rectangle

It is easier to construct a rectangle on a graph. These are 2 horizontal and parallel levels of support and resistance. They can show both the resumption of the current trend and its end or reversal.

There are 2 main types of rectangles: bullish and bearish. In turn, each of them can be a reversal or confirm the current trend. Let's look at each option.

Bullish rectangle. The screenshot below shows a binary options pattern confirming the trend as the candle broke the upper level of the rectangle.

Now let's look at the reversible rectangle.

Risks

Despite the potential break-even of the system, its risks are higher than during standard trading. Losses are growing exponentially. A profitable trade can come after five, ten or more failures. By starting with one dollar, a trader can risk hundreds, and if successful, return the initial bet. Therefore, speculators often close a series of failures with a loss, without waiting for a profitable contract due to a lack of capital. Or they don't have enough money to cover their losses.

How to reduce risk

Trade with the trend. In gambling, the chances of winning and losing are determined by probability. With BO everything is different. The outcome depends on changes in quotes subject to trends. By opening trades following the trend, a trader increases the likelihood of a successful outcome.

Working with predictable trading instruments with moderate liquidity . Currency pairs with a stable trend: EUR/JPY, AUD/USD, USD/JPY.

Capital Management

The method requires a conscious approach and following three rules:

1. Limit on maximum loss. It is recommended to spend no more than 8–10% of your deposit on one series. In order not to violate the conditions, the trader’s capital must be several thousand dollars.
2. Limit on the number of losing trades. It is recommended to stop after four to five options closed in the red. The trader’s task is to learn to predict market changes with an accuracy of more than 50% in order to prevent a long series of failures.
3. Top up your account with a reserve. It is optimal if the account balance is at least 500 times the initial purchase. Starting bets from one dollar, you must have at least $500 in your account. However, this is often not enough, especially if the trader opens trades at random.

Trader psychology

Technically, the Martingale method for trading binary options seems simple. But this is only due to a misunderstanding of how the law of averages works.

It seems that the more losses, the higher the chance of winning quickly. This is the player's mistake. In fact, the probability is 1 to 1 for any outcome. For example, there may be one victory after five or twenty defeats in a row. The probability that after 10 transactions the eleventh one will close with a loss does not decrease and is 50%.

Triangle

The triangle is one of the simplest shapes. Thanks to it, you can determine when asset quotes will leave the consolidation period and a new trend will open. There are 3 main types of triangles that can be identified on a chart. Let's look at each one.

1. Rising.

The main conditions are a horizontal resistance level and several rising lows. Typically, a rising pattern is built on pullbacks during an uptrend and indicates its continuation. Sometimes it can give a signal for the end or reversal of a trend.

When quotes break through the resistance level, you can open a trade.

1. Descending.

A descending triangle foreshadows an imminent price fall. This is not a trend figure, since it is absolutely unimportant what the trend was before the figure was created. The main thing is that the price of the asset will begin to fall.

A triangle is constructed along the horizontal support line and descending highs. An example in the screenshot below.

The deal is concluded when the support level is broken from top to bottom.

1. Symmetric.

A triangle appears when neither the bulls nor the bears can take control of an asset. First on the chart we see high highs and then low lows. After this, activity begins to fall, and the support and resistance lines narrow and form a symmetrical triangle.

After this, you should expect a breakdown of one of the lines. A symmetrical triangle is a binary options figure that can show both a continuation and a reversal of the current trend.

If the lower line is broken, open a bearish trade. The Call option must be purchased when the upper line is broken.

At first glance, it all seems easy, right? But actually it is not. If you've never found triangles in real time, you may have trouble finding the shape. In addition, there are a few more rules that need to be taken into account when constructing triangles:

• There must be an odd number of waves inside the triangle. The best option is 3.5;
• It is not recommended to open trades inside a pattern, especially for beginners;
• You can open a deal immediately after breaking through the level. But in this case, the chances of running into a false breakout are much higher. We recommend entering after the signal candle closes.

Pros and cons of the Martingale method

Pros:

• Simplicity - contains clear rules that are easy to follow.

• Predictability - allows you to calculate possible costs and profits in advance.

Minuses:

• Small profit - the longer the series, the higher the losses, but potential earnings remain at the level of the first contract.
• Risks that grow exponentially after each failed contract.
• Weak prospects . At a distance, the method almost always leads to the same result - a drain of capital.

Flag

The flag is often used by experienced traders, but beginners can be stumped. But in fact, there is nothing complicated in its construction. In addition, we recommend that you definitely understand the rules for constructing this binary options pattern, as it allows you to timely find moments of trend revival after consolidation or a trend reversal.

Let's move on to construction. This element of graphical analysis consists of two parts: the flagpole and the flag. To make it clearer, take a look at the screenshot below.

A flagpole is one or more long candles in one direction. Flag – lines of support and resistance parallel to each other, built on two or more local minimums and maximums, respectively.

The deal is concluded after the price breaks through one of the flag levels. You need to enter a rise when breaking through the resistance level (as shown in the screenshot). To go down – when the lower level is broken.

Figure it out? Now open the live chart again and try to find the figure yourself.

Case Study

Let us take as a popular example the “Good Martin” strategy, to use which you will need two indicators and an online calculator that allows you to carry out calculations in a short time. Traders are recommended to use MACD and Parabolic SAR, again combining a trend indicator with an oscillator.

Now we need the trend tool to start drawing dots under the candles, informing about the possible start of an uptrend. You should open a trade when the MACD columns begin to appear above the zero zone. We see in the figure that this time the entry was accurate, and we did not need to take any extra risks, but this will not always be the case...

For example, here we would need 5 steps to compensate for our losses and start making profits using the Good Martin binary options strategy.

Antimartingale

The principle of anti-martingale trading is to increase the size of the investment not in case of loss, but in case of profit. The trader looks for a trend movement and opens a trade. If it closes successfully, the bet is doubled, then increased by 50%, and then by another 25%. Usually they limit themselves to 4 steps, returning to the initial investment and waiting for the next entry point. If during the trading process one of the transactions in the series turns out to be unsuccessful, then trading is immediately stopped.

Experienced speculators can, under certain conditions, achieve a significant increase in their deposit using the Martingale strategy. Beginner traders should use this risky method with caution. For beginners, we can advise the following: watch several video lessons, read reviews to choose a good strategy that will reduce the risk of losing investments.

What reviews from traders can you find online about the Japanese Martin trading strategy?

Everything is laid out quite attractively, and in ideal conditions everything should work, but how are things going with the implementation of this idea in practice? What are the nuances and pitfalls? Feedback from traders about trading on a real account using the Japanese Martin strategy fully answers these two questions.

Experts say that the presence of the candlestick factor allows you to almost double the chances of success when compared with a regular Martingale over a short distance. But this fact in itself does not give traders anything.

Many users of specialized blogs and forums dedicated to trading in foreign exchange markets, investing and binary options in particular, rate their experience of using this trading system as negative.

Yes, at certain moments you can reach a good level of income and even gain some confidence in the infallibility of the presented formula, but sooner or later there comes a period of going into the red.

It is quite natural and understandable that binary options brokers promote Japanese Martin and other Martingale-based strategies among traders - since they require the market participant to have a large amount of funds in the account in order to cover possible losses from a series of incorrect forecasts, this allows the broker himself to make good money on commissions.

Let us remind you that many intermediaries have a commission of an impressive 15%. We bet $100 and lost – we lost the entire amount. We bet $100 and won – we received $185. And Martingale in any of its manifestations forces the trader to enter into an impressive number of transactions every day, from which the broker himself will receive his PROFIT. The financial interests of the bidder himself are taken into account here in the last place.

Flag and pennant trend continuation patterns for binary options

There is no point in considering these figures separately, because the basis of their construction there are only a few minor differences. The pennant and flag indicate a small and short consolidation that occurs in a very pronounced trend.

It is noteworthy that before these figures the trend line should be straight or even steep. At this time, the trend begins to “rest”, for which it stops for a while, after which it continues to move, but stronger. The flag and pennant represent the most reliable and accurate trend continuation signals. Here the trend changes very rarely, but it is best to be able to find all the reversal and trend continuation patterns for binary options.

Binary Gambit

Another profitable Olymp Trade strategy, which came to binary options from Forex. Its essence is simple to the point of genius. Market sentiment, and therefore asset prices, depend on economic and political news. You can make good money from this. Information should be taken from sources in the European Union, USA, Canada, and Australia.

The main tool for technical analysis for this strategy is the calendar, located in the platform menu, the “Analytics” section. There you can find out when the information was released and how important it is. We select only the first most significant news. They are at the very beginning of the calendar.

Economic news calendar Olymp Trade.

We conclude a deal not immediately after the information is published, but after 5-10 minutes, so as not to be mistaken in the market mood. If the price is steadily falling, then we bet on a decrease, if it rises, we bet on an increase.

This strategy can be used not only in Olymptrade, but also on any other platform. I make money on it 80% of the time.

Pennant: the principle of education

The list of patterns is completed by a pennant. If we talk about the features of education and the functional component, the pennant is very similar to the flag. The difference between the figures is only in the visual picture on the chart.

The pennant is a triangle with a flagpole in front of it. On the graph it looks like this:

The size of the pennant is not the most important thing. In this pattern, the investor should be interested in key levels, after which transactions are concluded.

How to accurately analyze the price of an asset

Technical and fundamental analyzes are widely in demand in the stock exchange environment. Fundamental analysis is a technique for predicting the price of an instrument participating in trading based on its financial indicators. In other words, fundamental analysts collect available information about companies, the economic situation in the selected country and other countries that can affect the price either positively or negatively.

Technical analysis is a frequently used and very important tool for trading various financial assets such as securities, futures contracts, binary options, currencies, cryptocurrencies, etc. Technical analysis is one of the two most commonly used tools for financial market analysis. And it is based on price chart analysis.

There is a duel in the markets between the bulls trying to push the price higher and the bears trying to keep the price as low as possible. Their activities are often cyclical in the market. Thus, technical analysis can be very effective in predicting future price movements. It is the art and science of reading a price chart that can help assess who has more market power in a given situation, be it the bulls or the bears. And you can understand whose direction prevails at specific moments by reading the price chart.