Strategy Follow the Trend

This is probably the strategy with the most followers, or at least one of the most followed in the early days of Binary Options .

The reason why the Follow Trend Strategy is so widely used is because it is really easy to understand and put into practice, and above all it does not entail analysis of many indicators and graphs.

First we have to understand what the trend is. For this we analyze the image below. When an asset shows over a period of time, a downward or upward curve is in a definite trend, whether Long or Short.

Of course, when the market is up and down (usually between supports and resistors) it is neutral, so the best strategy in this situation is Support and Resistance .

Recognizing favorable trends for trading (Upward and Downward) one must use the charts and indicators to start trading.

Please note that using time periods (bars or candlesticks) of at least 15M to determine a trend is that if we see in the bars of 1 minute or even 5 minutes we may be misled as an active asset. Being in a trend, you can make a small retracement for a few moments just to gain strength to continue in your defined trend.

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My advice for the correct use of the strategy following the trend is:

 > Correct trend identification – Using the Stochastic Oscillator indicator,  verify that on the chart of the Day (D) and 4H both are on a trend, or if they are worn out, they are both worn in the same direction.

Sometimes an asset has such a definite tendency in one direction that although the indicators are all completely depleted it continues to go in the same direction. If you find that you are not afraid, bet on the continuity of the trend.

After checking D and H4, check H1. Ideally it is in the same direction, if not, it is because the market will be doing a small retracement (change the trend).

Wait until it runs out and breaks again in the previous direction.

Another widely used indicator is moving averages. Put the time frame at H1 and use a moving average of 24 and one of 120. If both are above the (price) sail then the trend is downward. If both are below the (price) candle then the trend is rising.

> Choose Binary Option Duration Time – Once you have these 3 lined up choose whether you want a 15 minute or 30 minute asset. I usually prefer the 15 minute one.

Use chart with M15 (should always use chart with same asset duration).

In this case what you should do is, whenever the Stochastic Oscillator indicator turns in the direction of the trend noted above, open a 15 minute operation.

Cautions when following the trend:

> Do not use this strategy when important news comes out. See more information on this subject in the topic related to trading in news time.

> Do not use this strategy at times of lower market volatility, especially when the European and American markets are closed, as tendencies are usually barred by supports and resistances.

> If you miss 3 operations in a row you should stop. Either because you are doing something wrong, or because the market is changing or making a momentary retracement. Only trade again the next day or the next 4H bar.

I use the Stochastic indicator because I am very used to several years of trading in FOREX , and yet I often fail, like all traders, because there are no surefire indicators, systems or strategies.

There are other indicators that may be more to your liking, such as the RSI, and so many others. My advice is that you should use what you like best and learn as much as possible to use this indicator until you are expert in its use.

Sometimes there are traders who are always looking for the miraculous indicator and spend time searching and testing several without ever finding it, because they never get to experience enough until they know it deeply.