Thursday , March 22 2018

Advanced call options trading strategy using the Fibonacci tools

Fibonacci trading strategy is very much popular in binary options trading due to its high-quality trading output. Professional traders use the important level of Fibonacci retracement tools in their binary options trading. The most important Fibonacci retracement level is 38.2%, 50%, and 61.8% level. The rising popularity of Fibonacci trading strategy remains within its trend following technique. Binary options traders enter the market in favor of the prevailing trend to trade this level. So how do the professional traders use these tools in call option? Before trading these levels we need to know how to draw the retracement level in an uptrend. The most recent swing low and swing high is used by the experts to draw the retracement level in the financial instrument. But before drawing the retracement level make sure the market is making successive higher highs associated with higher lows, classic criteria of an uptrend.

Let’s see how the professional traders use the Fibonacci retracement level in their call option strategy.

Figure: Call options trading strategy using Fibonacci retracement tools


Options traders have multiple ways to trade the important Fibonacci level. Professional options traders are making tons of money only by using the call options trading strategy in the important retracement level of the financial instrument. In the above figure, the most recent swing low and swing high was used to draw the retracement level of the financial instrument. Once the experts draw the important retracement level they wait patiently for the price to retrace back to the 61.8% level. After the price hits the desired price level, trained professional wait for price action signal. In the above figure, a nice bullish pin bar was formed right at the 61.8% retracement level which triggered the call option for them.

Call options trading strategy using the price action confirmation signal is extremely profitable. There are many new traders who often risk all of their trading capital by seeing the reliability of this trading strategy. Though the system is very much accurate and perfect yet it fails sometimes. Trained binary options traders always use proper money management factors while using this trading strategy. On the event of the major economic news release, these system should be avoided since there might be a huge false spike .Once you master the call option technique in the 61.8 % retracement level you can also trade the 50% and 38.2 % level. But before you trade that level it’s imperative that you know the highly reliable candlestick pattern. No matter how convincing the trading signal is, proper money management system should be always followed in all the important levels. Once you gain enough confidence in trading this level than you can also trade touch and no touch option using the Fibonacci retracement tools.

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