Twenty-eight forex binary signals overnight produce winning trades. Twenty-one were winning trades and seven were losers (if the expiration was questionable, then it is counted as a losing trade).
28 Forex Binary Signals Overnight
The image below (you will need to click on the image to expand as all ten charts are included) shows all the signals that were issued. The blue dot means a long signal was generated. A red dot means a short signal was issued. The rules are:
- When the trader receives the signal, either long or short, they wait for price to approach the signal price area. Risk should be between $45 and $55.
- The signal provides a minimum expiration. While waiting on the market price to approach the signal, the trader finds a binary option that meets the minimum expiration.
- The trader can set an order for entry at the risk level he is willing to risk or he can simply enter when the current price reaches the signal price.
- Exit is generally within the three bars after entry.
To determine if the signal is a winner or a loser, simply count three bars (since the minimum time is a 45 minute expiration) from where price reaches the dot. If the 3rd bar close is below the signal dot, then it is a winner. Remember, it is not a matter of how much the binary options moves. Instead, price has to simply stay below or above the strike price.
The absolute best forex binary signals to trade are the AUDUSD, EURUSD and USDJPY because there is always a binary option available. Plus, the strike width on these three are very small. Generally on these forex pairs, the strike width is between four and five pips.
Handling Multiple Trade Signals
Quite often, the signals generate multiple forex binary signals overnight. For example, on the EURGBP chart below. The algorithm generates three successive trades. Two signals touch the signal dot and one does not. Later, the indicator generates two more signals and one definitely touches the price, while the other comes within six ticks. This provides four trades – all winners.