Strategy for Finding the Right Trading Time
As an online trading system that provides access to various types of instruments, binary options allow you to trade with any financial instrument, whenever and wherever you are. However, not all instruments have the same level of liquidity and volatility. Each instrument has different load times. For example, the forex market is available 24 hours a day from Monday to Friday, while the stock market is only open during working hours. Not only that, you also need to adjust the type of instrument that you are trading, as well as the USD / JPY pair that moves quite significantly in the Tokyo session and returns to active in the New York session, or stock instruments from the US market which are open only during US business hours only.
You will be more flexible in determining the type of instrument that suits your trading style if you have unlimited trading time. Conversely, if trading time must be adjusted by your busy life, then look for the best trading instruments at times that you spend on trading. For example, you have trading time at 7:00 a.m. to 9:00 p.m. every day. From the forex market, you can choose USD pairs because the new New York session opens at 7:00 p.m. However, that does not mean limited time can narrow your chances of trading with the desired instrument. There are many choices of instruments that can be traded in a period of time.
To ensure the success of trading in binary options, time adjustments are not only focused on expiry time settings. There are 3 types of timing that can determine your success in trading binary options, namely the timing of trading, the time frame, and also when trading is not right.
Strategy to Set the Time for Binary Options Trading
The above issues may be ruled out by general answers such as taking the most active market sessions for trading time, choosing the time frame according to the trading period, and choosing less active trading times as inappropriate trading. The three answers are indeed not wrong, but it's good if you look at these issues further to be able to find the most appropriate binary options trading plan. For example, when taking the most active market session for trading time, which market is intended? Does each market of the binary option instrument have the same active time? Then for the selection of time frames, is it enough just to identify it according to the trading period? Furthermore, when can the instrument market be said to be less active? We will describe these problems in further discussion about how to set the time for trading the following binary options.
FOREX TRADING TIME
The forex market is a financial market with the highest liquidity. You can trade 24 hours a day from Monday to Friday. You only need to choose the right pair to be able to take advantage of price fluctuations in each session. For example, you can trade with JPY, AUD, or NZD pairs in the Asian session, while you can use a pair with EUR or GBP currency in the London session.
Trading Session Trading Time (GMT)
- Sesi Sidney 10:00 PM - 7:00 AM
- Sesi Tokyo 11:00 PM � 8:00 AM
- Sesi London 7:00 PM - 4:00 PM
- Sesi New York 12:00 AM � 9:00 AM
The New York session is the most active trading time, because almost all traded pairs use USD as their benchmark currency. Overlap between New York and London Sessions is the most busy trading time, due to the large amount of fundamental data from Europe and the US being released. Price fluctuations can increase significantly, and traders with the right option positions can harvest a lot of profit in a short time. Conversely, underperforming traders can risk losing a lot of their trading capital due to too fast market movements. The existence of such characteristics can provide an option for traders who like to take risks to trade in active market sessions, but can also provide opportunities for traders who do not like to take risks to enter trading sessions that tend to be quiet.
Avoid Less Profitable Trading Times
Trading in binary options can be done by following the most active session of each selected instrument. In general, less liquid market movements on holidays or weekends can provide limited trading opportunities. So, in addition to considering the active time of the market on weekdays, you should also reduce trading activities on weekends or holidays. However, there are several binary options brokers that offer weekend trading with profit percentages of up to hundreds of percent. This method can bring benefits if you can use it well. This is because, being able to maximize the lack of trading opportunities amid the lack of trading activity and low volatility can be a challenge in particular
for experienced traders who have specific strategies for trading in quiet markets.
Apart from holidays and weekends, unfavorable trading time is also assumed to be the period in which you place an option outside the trading plan. If you already have a plan that has been tested and can bring consistent results, it will be better if you stay on the path you have set yourself. Placing options at unusual times tends to be easily affected by trading emotions, such as the desire to make profits when there are certain fundamental news releases, or just
Finding the Right Time Frame
For technical traders, determining the time frame is one of the most important steps that can support their trading strategy. At first glance, the use of time frame types can be sufficiently adjusted to the trading period, such as minute time frames to hourly for short-term traders and daily to monthly time frames for long-term traders.
However, in reviews on several trading strategies it is always recommended not to rely solely on price analysis in one time frame. Short-term traders still need to analyze a higher time frame to find out the direction of the overall trend, while long-term traders sometimes need to look at a lower time frame to find the right entry position. Then, which time frames can you use to support your trading system?
In the process of selecting the time frame, there is a rule called "The Rule of Four", which is the trader's policy of dividing and multiplying its main time frame by number 4. Say you chose the H1 chart as the main time frame you normally observe to analyze price movements , the time frame can be the main chart for setting expiry time. Here, you still need to set a long-term time frame that functions as a trend indicator, and a short-term time frame that is useful for finding entry positions. The calculation of "The Rule of Four" is applied to the main H1 time frame, which if described will show a calculation like this:
- Medium-term frame time: 60 minutes (H1)
- Short term time frame: 60: 4 = 15 (M15)
- Long term frame time: 60 x 15 = 240 (H4)
Thus, if you trade with the main H1 time frame, then you can do a long-term analysis on the H4 time frame and look for the position of the entry in the M15 time frame.
CONCLUSION
You can adjust trading time with the most promising trading sessions for the volatility of your trading instruments. Time frame trading is initially taken from your trading period, and then can be calculated using the formula "The Rule of Four" to get the right time frame recommendation to be able to complete your trading analysis. Meanwhile, you need to limit binary options trading activities during financial market holidays such as holidays and weekends.
No comments