Short Term Reversal Strategy

If you are having trouble making winning trades in the world of binary trading, we might just have the solution for you. There are many different trading strategies out there, some of which are easier to comprehend than others. This short term reversal strategy is probably about as easy as it gets. All you need for this strategy is a 10 minute chart. All you need for this strategy is an analysis of price action, which is what the 10 minute chart is for, and you don’t even need any indicators.

Making Calls

You are now going to look at the 1 minute chart. What you are looking for is a clear and steady downward trend for the asset you want to trade. If you see a clear downtrend for the last 2 hours of the asset on the 1 minute chart, you are going to place a call trade. Once you have found an asset with a downtrend for the last 2 hours, you are going to make a call trade with a 10 minute expiry and you are going to place it on the lowest price point for those last 2 hours. The trick here is to place the call on the lowest price point of the downtrend, a downtrend which should then reverse itself, go up, and make your call profitable.

reversal strategy for call trades

Making Puts

For making put trades you are going to do the exact opposite of what you would do with a call trade. Use your 1 minute chart to analyze the last 2 hours of an asset. However this time you are looking for an upward trend. The trick here is to make a put trade at the highest price point of the asset in the last 2 hours. You are going to make the put trade, set the expiry to 10 minutes, and do so at the highest price point. The uptrend should then reverse itself shortly afterwards and make your put trade profitable

.reversal strategy for put trades

Short Term Reversal Strategy – Final Thoughts

To make this trading strategy as effective as possible, you will want to make these trades when the market and trading volume is at its highest. The highest volume usually occurs between 7 and 10 am GMT and between 12 and 3 pm GMT.
The short term reversal trading strategy has an average success rate of between 70 and 80 percent, with the overall average falling right in the middle around 75 percent. It is possible to get over 80 percent, but it is fairly rare.

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