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  1. #1
    Active Member Schizz's Avatar

    Schizz from noob dum to somewhere else diary !!!

    Hi, I think I am posting this in the right place. I just wanted to find somewhere to post stuff i'm doing to help myself learn, have a record of what i'm doing etc etc.

    I am a noob at binary but have some forex backgroud, used to trade many years ago.

    So basically I am king nooob of noobtown but hopefully not for long...

    Today I wanted to try out some key indicators on an MT5 platform. I'm using STOCHASTIC OSCILLATOR, MACD, BOLLINGER BANDS and RSI.
    Trying to understand them, to use them, to better execute a trade in binary options.

    Click image for larger version. 

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    I have been trading a demo account today and I must say the day has gone really well in terms of trading. Had no losses in MT4 but it's been a different story in binary options. (as you can see on my profile),
    Going to test test test now and try to bridge the gap between forex and binary. These indicators seem to be, so far, bloody accurate and good signal providers, using all 4 as a guide as when to enter.

    Need to fine tune it now from MT4 to Binary then I think I will be on to a winner.

    MT4 profit today = $833.96 No losses (DEMO ACCOUNT)
    Binary options = about 50/50 I would say, wins and losses. (DEMO ACCOUNT)
    Last edited by Schizz; 04-07-2016 at 05:11 PM. Reason: im a noob

  2. #2
    Veteran Member Ronnel's Avatar
    Very nice to see that you've started your own trading diary.

    Since you did Forex, I'm sure you have no problems with entries. The only difference with binary is that you have to pick an expiry.
    I don't do Forex much but I do pass some of my trades to be copied by my mates both for Forex and Binary. It is straight forward for Binary but for Forex, I usually pass breakout trades since they need pips and usually during breakouts the candles often continue going the same direction for about 3 to 6 candles then they exit or use Heikin Ashi and just ride the trend until signs of reversal. It is also common to see huge candle movements during breakouts which I'm sure you know that.

    The reason why I'm sharing you this is because you have experience in Forex and I'm sure you know how to properly trade breakouts. So for Binary, if you traded a breakout properly, that will give you around 3 to 6 candles (I like 3 because 4 to 6 sometimes bounces back or stalls before they continue again...). So if you are using M5 chart and traded a breakout (huge fat candles), that's an easy M15 expiry This technique basically works on all TF chart, same deal.

    One good thing about Binary is that you can trade doing very short burst trades by bouncing the candles at OB-OS areas and even if you don't make lots of pips, as long as the candle expires inside your target it's ITM..

    So if you are in doubt, you can use your Forex skills for trading breakouts and just aim for 3 to 6 depending on the momentum that the candles are showing. But you also have to calculate if you are near S/R and also calculate angle of your trendline when doing breakouts just to be on the safe side. Funny is that sometimes even when the candles are near S/R, 3 to 4 candles is not that scary...

    I keep talking about breakouts... if I may ask, how's your breakout skills? Or are you an OB-OS trader? Or are you a S/R trader?

    About your chart picture, it will be awesome if you can share something a bit larger

    Cheers!
    Duct Tape can't fix OTM

  3. #3
    Legendry Member milos's Avatar
    Nice tools.I also use MACD,RSI,Bollinger Bands and Fibonacci retracement.
    Last edited by milos; 04-07-2016 at 06:30 PM.

  4. #4
    Active Member Schizz's Avatar
    Hi, thanks for your reply. Can you tell me what the fibs job is on the chart?

    Cheers

  5. #5
    Active Member Schizz's Avatar
    Thanks for your reply Ronnel, i'm not very good with forex speak as i am self taught and this forum is actually the first ever trading forum i have joined.
    Abit like when i make music, i can do it pretty well (alot better than my trading) but because i am self taught, talking to another music producer i am sometimes huh wtf are you on about LOL.

    Yeah I know about breakouts using bollinger but i also know how it can bite you in the behind and just go sideways on you.
    Really appreciate the tip about 15m as my head was getting abit confused as to how i could take the info from MT5 and squeeze it into a binary trade.

    I will have a day tomorrow of doing 15m binary trades working from MT5 15m charts and see how it goes.

    OK, the pic, here goes...Click image for larger version. 

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  6. #6
    Active Member Schizz's Avatar
    On this pic I would wait for the bollinger to hit top line, See where the rsi is, hopefully moving up towards topline, see if the stoch is hitting top line or over it suggesting overbought, check the signal is sell on the MACD and open a sell.

    Hopefully i'm looking at it all correctly?

  7. #7
    Veteran Member Ronnel's Avatar
    No worries, this is the first trading forum that I have joined too and my trading experience and knowledge is still very limited so I also get the "WTF are you talking about" often, lol!
    About break outs, I'm talking about micro breakouts. Sad to say that Bollinger Bands and most indies can't detect, can't see or if the indies do see breakouts, entry is a bit late and can often do more harm than good. I'm talking about Price Action breakouts and not indicator assisted breakouts. Here is a photo of a chart that I cherry picked some micro breakouts using Price Action and this is basically my favorite way of trading. You will also notice that often those areas where I placed blue boxes have a candle engulfing.

    I don't use indicators but have added Bollinger Bands to cross-check if it can detect them but sad to say that it often did not show good entry point plus when it did it was often a bit late. As you can see that breakouts does not always give huge movement but often it does. Even when the candles are short, usually they still go at least 3 candles before dying which is enough to land ITM most of the times but still some do land OTM.

    Looking at your chart, you seem to be doing well with your strategy. It also shows that you are a bounce trader (OB-OS).

    Here is the photo for baby breakouts...

    Click image for larger version. 

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    Last edited by Ronnel; 04-07-2016 at 09:01 PM.
    Duct Tape can't fix OTM

  8. #8
    Active Member Schizz's Avatar
    So you work from M5 watching candles for quick breakouts and trade the reversals? im confused haha (doesn't take much) :P

    How do you know when it might do it with no indicator?

  9. #9
    Veteran Member Ronnel's Avatar
    Quote Originally Posted by Schizz View Post
    So you work from M5 watching candles for quick breakouts and trade the reversals? im confused haha (doesn't take much) :P

    How do you know when it might do it with no indicator?

    I use different TF charts depending on my target expiry but M5 is the main TF chart that I often use. Yes, basically I just watch the candles and trade the small breakouts. I also do trade reversals and bounce for Binary but often Price re-traces or do several bounce before it really pushes through the reversal direction so for me to be on the safe side I prefer trading baby breakout because they often just shoots out away from my entry point giving me more peace of mind.

    I'm really sorry for bringing out breakouts to you. I had it implanted in my brain that Forex guys loves trading breakouts because of the large movements and since you came from Forex, I honestly thought that you traded this way too because this can also be used for Binary with good results just like in Forex. I only have a small number of Forex friends so it was implanted in my brain that my Forex friends equals Forex and all of them likes trading this way so I thought that reminding you with it will click some light bulbs... my honest apologies..

    How do I know when there will be a coming breakout without indicators... hmmmm, the easiest answer is trendines, angles, tops and bottoms, patterns and candlestick analysis. Just forget about it for the time being and just concentrate on Stochastic and RSI for finding overbought and oversold areas. You are doing well and as the saying goes, "if it ain't broken don't fix it".

    My humble apologies again..
    Duct Tape can't fix OTM

  10. #10
    Active Member Schizz's Avatar
    haha, honestly no need to appologise. I do trade candle breakouts of the bollinger (just turned on MT5 to see a massive breakout on GBPUSD and couldn't resist trading it :P )

    If it aint broken don't fix it....I'm still in the process of building the thing before I can break it haha so appreciate all ideas and suggestions.

    So far I am doing really well on MT5 but am failing to do the same on binary. Am going to do 30m trades today using same techniques as yesterday and see if it can produce more winners in the binary demo on this site

  11. Thanks Ronnel thanked this post

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