Originally posted by Michael Hodges. Click here
for the full review.
The Smart Break Out Strategy is a forex strategy that can be easily adapted to binary options. The strategy is based on daily price movements and seeks to make regular small gains in actively traded currency pairs. The strategy is based on four potential scenarios, one of which will happen each day regardless of other market factors. The author assumes that today’s price will perform in relation to yesterday’s price in one of four ways. First, the price today will break yesterday’s high. Second, the price today will break yesterday’s low. Third, the price today will break both the high and low of yesterday’s action. Fourth, the price today will not break the high or low of yesterday’s action.
My Last Word On The Smart Breakout Strategy
The Smart Breakout Strategy is OK. It’s not awesome and it doesn’t totally suck. It is a simple form of entry picking but leaves a lot to be desired. I’m not sure if this is a good strategy for Forex but it does seem to have relevancy in binary. In forex you have to get a certain number of pips in order to make the trade profitable, in binary you only need one. It could be OK for a beginner who is looking for a good starting place to work on a more complex strategy or for a more advanced trader who already has a solid foundation in technical analysis. For beginners, I would suggest only using this in a demo account until you have a firm grip on trend analysis. For advanced traders this could be a viable form of entry AFTER
you have determined trend and potential support/resistance areas for yourself.