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  1. #1
    Junior Member ProteinJunky's Avatar

    How to time an option correctly? !!!

    Hello all.

    I have been trading with some success over the past 3 months or so, but am still rather new.

    The issue i am having contentiously is not being able to time the options expiry correctly, i know this happens to everyone, but i don't really know how you are supposed to set a timeframe for an option in the first place.

    Below are some examples from my demo account, as you see the options are in the money for the majority of the trade, but then fall apart at the end, most of the trades provided where longer term trades (1-5 hours)

    so how is it you know a good timeframe to purchase you're option for, and what tips do you have

    Thanks.



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  2. #2
    Legendry Member Okane's Avatar
    I suppose you mean expiry and not timeframe.

    We have many articles on how to pick expiries, I guess you haven't read them yet?

    http://www.binaryoptionsthatsuck.com...-the-pros-way/

    I have also made a few videos, you can watch them here:

    https://www.youtube.com/watch?v=uu1b0fe9TjU

    and this one is more thorough:

    https://www.youtube.com/watch?v=Cy9DLdhJJJ8

    But there is more, when you understand HOW to analyze charts, picking the right expiry
    becomes easier. See more videos on our channel, read more of the articles, gain skills and
    you will get there!
    Live Webinar: Hidden Content
    Join My Skype Group: Hidden Content

  3. Thanks Steve C. thanked this post
  4. #3
    Moderator Kolyo's Avatar
    Hi Proteinjunky,

    You understand that timing is one of the biggest problems in trading binary options. The articles mentioned by Okane are good starting point. There is no simple answer to that question. You can always find yourself entering in position which is profitable at first and later go underwater. You should use well defined rules for entering, either mechanical or discretionary and than you have to allow the trade to develop without thinking on it. There are always losers even with good initial trading ideas so this is part of the business.
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  5. #4
    Rookie Member BSB Zio's Avatar
    Good morning,

    This is always a key issue in Binary Options as time value is of critical importance. In FX, it is more about magnitude of price rises or drops, eventually triggering either your Take Profit (TP) or Stop Loss (SL) levels, hopefully at a good RR (risk-reward ratio).

    In my opinion, always use the rule of matching your chart time frame to your expiries. For example, it is not advised to trade end-of-hour expiries off of 5 minute charts as the predictive capability of 5 minute charts is often a factor of x1,x2,x3 or max x4. Equally, do not take a 5 or 10 minute expiry trade off of a 1 hour chart.

    If you are looking to trade longer expiries like end-of-hour or even end of day, then please use chart time frames of 30m, 1 hour, 4 hour and even 8 hour. Cycle through them. This process is known as MTF (multi time frame analysis) and takes under 30 seconds.

    Hope that helps,
    BSB Zio

  6. #5
    Junior Member ProteinJunky's Avatar
    Quote Originally Posted by BSB Zio View Post
    Good morning,

    If you are looking to trade longer expiries like end-of-hour or even end of day, then please use chart time frames of 30m, 1 hour, 4 hour and even 8 hour. Cycle through them. This process is known as MTF (multi time frame analysis) and takes under 30 seconds.

    Hope that helps,
    BSB Zio

    Hey, thanks for the tips, in the process of multi time frame analysis, what exactly is it that needs to be sought after?

  7. #6
    Rookie Member BSB Zio's Avatar
    Quote Originally Posted by ProteinJunky View Post
    Hey, thanks for the tips, in the process of multi time frame analysis, what exactly is it that needs to be sought after?
    Good morning,

    This depends on what your goal is in MTF. MTF can be used for two things, primarily. These are:

    1) Positioning accuracy: If you are looking to take an end-of-hour trade or longer expiry, off of a 30m or 1h chart, which is perfectly fine, you may get a better entry by drilling down on the 15m, 10m, 5m progressively, as you fill find a more logical point of nearby resistance on those charts. For example, if you are looking to take a CALL, mean reversion trade (i.e trading a retracement upward after a drop down), you may want to enter at the lower bollinger band. But the lower bollinger band on the 1h chart may be too far away (30-50 pips), and so drilling down on the lower time frames, using MTF, you may find a more suitable bollinger band which is not as low as the 1h chart, and therefore a more realistic entry.

    2) Ascertaining trend: MTF, in our view is best used in determining the overall direction of the market. On the 1m-5m charts you may see a southern trend with downward trending channels (bollinger or other), however if you zoom out and observe the 1h, 4h charts, you are likely to see a more clearer indication of where the broader trend is. MTF is very useful here.

    Hope that helps,
    BSB Zio

  8. #7
    Active Member Steve C.'s Avatar
    How often should trend lines be redrawn? Obviously as time goes on the trend line and candlesticks will move further apart until some point when the trend reverses.

  9. #8
    Moderator Kolyo's Avatar
    Hi Steve,

    It is a reasonable question. You shouldn’t redraw the trend lines too often because it will become painting not trading. On the other hand if you do not use the right and updated trend lines you can miss some opportunities and trade on wrong signals. So it is a personal choice, but always keep in mind that a support trend line can be broken and become resistance and to the opposite.
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  10. Thanks Steve C. thanked this post
  11. #9
    Legendry Member milos's Avatar
    Hello Proteinjunky!

    How to Calculate the Expiry - Milos Explains Expiries here is link below

    https://www.youtube.com/watch?v=800soEvoxpM

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