Good and Bad Trading Conditions for Binary Options
This is a screenshot of bad trading conditions. As you can see in the picture (below), the price is EXTREMELY flat and consolidated. Even upon moving out of one tight horizontal range, it goes into another tight range 1-3 bars later. You might think of catching it go up one bar and down the next, but when things move very tight, what if you get doji or pin bars one after the next? Theoretically, a long consolidation will be followed by a very powerful breakout… when there’s market volume. When there isn’t, it could just be an endless wait that will not be worth while.
This is a screenshot of good trading conditions. Although you see there was a consolidation, but once it broke through, it continued to tank steadily. This is one situation where I would have multiple short entries following it down, and at the very end, riding it back up for a pull-back. I could easily get 7-11 trades in there, based on how aggressive I wished to be.
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