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Hello traders friends! When trading Binary Options , our main goal is to correctly determine the direction in which the price will move. And the direction is best determined based on the main thing – the behavior of other traders. The Price Action elements on the basis of which the Antigravity strategy is built will help us in this . In the review below, we will analyze its basic principles, consider examples of transactions and recommendations for use.
Antigravity strategy characteristics
How the strategy works
Since we will choose a suitable expiration time based on the current market situation, to begin with, we choose a timeframe a couple of orders of magnitude less than the expiration time offered by the broker . For examples, we will use the time period H1.
The next step is to plot support and resistance levels using the shadows and candlestick bodies. The goal is to create two overbought and oversold zones, upon reaching which we will enter a trade. The levels are especially clearly visible when moving to smaller timeframes, for example, 5 minutes.
The main parameter of the system, the so-called Wave, is responsible for the average number of candles spent on the transition from one level to another.
In this example, in order to return from the resistance level to the support level, the price needed 20 bars, and to make the return trip – 10 bars. This means that the Wave parameter will be equal to the average of two values, namely: (20 + 10) / 2 = 15 bars. The expiration period is selected in the range from 70% to 120% bounce. That is, the final expiration period in our case can fluctuate in the range from 10 to 18 bars.
Except for the periods of news release, the price movement rate remains practically unchanged and remains relatively stable. This is explained by the approximately equal number of orders received from traders per unit of time. Of course, this does not mean that half a year old data will work as well as more relevant ones, so from time to time you still need to adjust the Wave value.
As a result, the sequence of steps is something like this:
- Marking of support / resistance levels.
- Counting the number of candles (Wave).
- Expiration time calculation – 70% – 120% of Wave.
In the case when the price has broken through the level and we have reason to believe that this resistance level has become support, we will count the number of candles from the breakout of the level to the return to the support level.
In this example, the price zigzagged 38 bars, which gives us the Wave parameter equal to 19 bars (38/2). Upon reaching the support level, place a CALL option with an expiration time of 13 – 23 hour bars (70% – 120% of bounce).
The strategy involves opening deals both on the first line of the level and on the second. More conservative traders only trade from the second line. But, in order not to miss a lot of good deals, it is better to enter immediately, when the first line is reached, and enter again when the second is reached. At the same time, the risks are divided equally between both transactions.
A very simple strategy allows you to make informed entries and significantly increase the percentage of profitable trades in binary options trading. It is important to understand that the profitability of this strategy is not one hundred percent and individual losing trades do not matter. The only thing that matters is the indicators after a long trading period, and here the percentage of profitability always exceeds 50%, which indicates the use of a deliberate strategy. But, I am sure, having correctly understood its essence, you can achieve much better results.