Trading Nasdaq using binary options, in the direction of the higher timeframes, produces profits on an easy to manage trade.
Trading Nasdaq Using Binary Options
The TradeStation RadarScreen Stochastic indicator by TradersHelpDesk showed that the Nasdaq 180 minute timeframe was “Overbought”. This quickly identified that traders should not be contemplating long positions as the higher timeframe was likely to dominate.
The actual chart also showed that price had reached a congestion dot on the TradersHelpDesk Trend ATR with diverging buying volume (decreasing volume on highs).
Trading Nasdaq using binary options, using an Out of the Money binary option, I entered a short at the 4831 strike price for a risk of $40 per contract. Then I immediately set a $40 profit target, which was achieved.
Just paying attention to the higher timeframes allowed me to analyze exactly where price was likely to go — and then I simply utilized a lower risk binary option. Just trying to trade a faster chart would likely have caused losses because they jump around more than the higher timeframes. Plus, sometimes, it is really hard to remain impartial when we look at our charts. In this case, I was willing to listen and simply went with the flow of the higher timeframe because they typically dominant.