I have received several questions about trading Nadex 5 minute binaries with the TradersHelpDesk indicators. In this video, Gail reveiws the setups that she uses for entry using a multiple time frame approach with limited risk parameters on forex.
My favorite setup is when the markets are overextended on the 15 minute chart with a candlestick going in my direction. For example, if the markets are overbought on the Tradershelpdesk ADX, RSI and Stochastic. I then go down and confirm a counter-trend trade using the 5 minute chart with a candlestick going in my direction on the 1 minute. But be careful that the smallest time frame doesn’t entice you into a trade when the conditions are not met on the higher time frame.
For a trend trade, I simply wait for price to approach an ATR on the higher time frame with confirmation on the lower time frame. Again, the smallest time frame is just a passing glance to ensure the bar is going in my direction and the Stochastic, ADX and RSI cannot show that the market is overextended against me. In other words, if I am going long, I definitely would not want the 1 minute chart to show that the market was overbought.
Trading Nadex 5 Minute Binaries Setups with the TradersHelpDesk Indicators
Additionally, I make sure the risk is acceptable (less than $35) and I always set targets. I also make sure the strike width is acceptable for my trading. I prefer the lower strike widths versus the larger strike widths.