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Binary Options Strategy using the Stochastic Oscillator
hello traders welcome to investor comes how to trade binary options series and in this lesson I'm going to show you how to trade BIOS with these stochastic oscillator now this elastic oscillator is a pretty cool tool to trade binary options because it gives you exactly bear and bull setups for you to be able to buy put and call options now let's go to the euro US dollar chart and this is today price action and we are going to we are going to add the stochastic oscillator to our chart now we have a simple stochastic oscillator and 1437 as a 1437 or stochastic oscillator and what i'm going to show you here is a few things that you need to understand the circle secrecy later has a oversold territory below 20 and it has an over Patera tori above 20 okay above 80 I'm sorry now these are the areas that you are going to be looking at when you are going to try to trade with the sarcastic oscillator but in order to trade with this instrument you have to be very patient because you need you need for the instrument to get to the to these two territories and you need to wait for the crossover ok you have a fast and a slow moving average within this indicator and for instance when you're looking for a long opportunity you have to wait for the blue line or the fast moving average to cross above the slow moving average at the oversold territory okay now right here I'm going to give you an example of what I'm talking about right here you have a crossover of the fast moving average above the the slow moving average in overbought territory so we have a signal to buy call options at this level right here now because we are on the one-hour chart and because of the time of the day we might find ourselves with a longer expiration option than we normally would with trade and we might trade the end of the exploration option and you can see that this option expires in-the-money and the end right before we have the basic result right in the middle of the socratic oscillator now what is cool about the stochastic oscillator is that it gives you surprisingly enough areas where you are going to find the best restore abortion areas for instance right here you can see that we the stochastic oscillator is about to cross over right at this highs right here you can see that we were trading I mean we traded to and rejected this area once twice and now we are trading right into this area and and the stochastic oscillator is giving us a very signal to buy put options we are no we are not yet there because the the stochastic oscillator hasn't crossed over entirely but if we are patient enough we are going to get a nice put option trade out of this scenario now let's move back and let's see what this oscillator has given us in the past or or in the past few days you can see right here that we have a bearish crossover okay all right of these highs and I'm going to point it out in price action and soon enough we buy this put option and we wait for four candles one two three four candles you can see that price the the expiration price is lower than the entry price and this option expires in-the-money now I remember that when we are in a Down move we are going to look for short opportunities or opportunities to buy put options and when we are in an up move we are going to only look for opportunities to buy call options and this is because we are always going to buy to trade with the trend when it comes to binary options and of course if we are in a range we are going to play the range but right here we have another great example of a bearish crossover we have the bearish crossover right here so we buy a put option at this level right here and we wait one two three four candles you can see that this option clearly expires in-the-money so this is what we're going to do and right now we because we broke with this up structure remember that we we always look at the market structure we were making higher higher lows and higher highs then we broke with this market structure we went short or we bought put options right and now whenever we get a cross over at oversold territory we are no longer going to trade it because we are now only looking for a short opportunities like this one right here










