Let me share my journey in the world of binary options trading. It's not just random guessing; it's all about understanding market trends perfectly. To make solid profits, I need to jump in at just the right moment, right when a trend is about to skyrocket. I'm constantly searching for clear signals that suggest possible reversals or adjustments, allowing me to position myself for a nice win.
The best time to enter a digital contract is when I notice a significant shift in the trend. Seriously, pinpointing that price direction is key, especially when I'm right at the beginning of a new trend. That’s my ticket to success.
This is why I'm so into signals that indicate potential trend reversals or adjustments; they're my essential entry points.
Now, here’s the catch: finding that exact moment of reversal can be tricky. Thankfully, I have some great tools to help me out, and one that really stands out is the Parabolic SAR. What’s cool about it? It provides real-time information — no guessing or lagging behind the market. This gives me timely trend data, perfect for executing my contracts right on the dot.
If you’re trading on the Pocket Option platform, you’ll find the Parabolic Indicator already set up and ready for your online trades.
About the Parabolic Indicator
Shoutout to the famous trader, W. Wilder, who introduced the concept behind the Parabolic SAR indicator. He’s also the mastermind behind several other useful tools for technical analysis and trading strategies.
Funny enough, the name of this indicator actually fits its appearance. When I add it to my workspace, I see all these parabolic lines lighting up my screen.
When I’m setting up the parameters, I typically go with a minimum acceleration of 0.02 and max it out at 0.2. Sure, the calculations might seem a bit tricky, but you know what? I don’t have to struggle doing it manually.
For executing my trades based on Parabolic SAR signals, I like to stick to timeframes from M30 to H4, especially when I'm trading binary options. Even though this market isn’t the best for medium-term trades, this approach yields infrequent yet precise signals, away from all that market noise.
How to trade with Parabolic Indicator
Williams outlined four states for this indicator:
- Dots below the price chart? That’s an upward trend.
- Dots resting above the price chart? We’re looking at a downward trend.
- If the space between those dots widens, we’ve got a strengthening trend.
- Shrinking space between those points? Time to prepare for a weakening trend.
Using the Parabolic as my guide, here's how I operate:
I go for a CALL option when a new dot shows up below the price chart. That’s my signal that an upward trend might be starting, and I’m diving in to grab those contracts while the market's bullish.
On the other hand, I go for a PUT option when a dot appears above the latest price bar. This suggests a potential downward trend, and it’s the perfect moment to jump in with a bearish strategy.
Just a quick reminder: the expiration must match the time it takes to form at least two bars.
To sum it up, mastering the Parabolic SAR indicator is like having a secret weapon for binary options trading. By reading the conditions of this indicator and making smart choices based on those new dots on the opposite side of the price chart, I can strategically choose between CALL and PUT options. Relying on the Parabolic SAR as my primary signal enables me to align my trades with what’s happening in the market, increasing my chances of scoring big in binary options trading with leading PocketOption platform.
