Thursday , July 19 2018
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Advanced put option trading strategy using Fibonacci tools

Trading the binary option can be extremely profitable using the Fibonacci tools. Fibonacci tools are unique indicators equipped with different retracement ratios which allow the trader to trade different retracement level of the financial instrument. So how do the professional traders trade the financial market with Fibonacci retracement tools? The answer is pretty simple. In this article, we will master the art of put option trading strategy using the Fibonacci retracement tools and price action confirmation signal.

Let’s see how the traders set their put option using Fibonacci retracement levels.

Figure: Put option setup using the Fibonacci retracement tools
Figure: Put option setup using the Fibonacci retracement tools

 

There are many different important levels in the Fibonacci retracement tools which the traders can use in their binary options trading. The most reliable level in these tools is 38.2%, 50%, and 61.8% retracement level. Professional traders set their put option in the 61.8% retracement level. Some traders also trade the 50% and 38.2% retracement level with price action confirmation signal.

In the above figure, the trader set their put option just at the 61.8% retracement level of the Fibonacci retracement tools. The advanced traders also set touch option at that level with the initial price target of the 50% retracement level. Almost 80% of the time the 61.8% retracement level gives provides enough resistance to the currency pair which ultimately drives the price back to 50% retracement level. So ultimately the professional traders are making two trades in the 61.8% retracement level. The first one is a solid entry of put option and the second trade is an advanced touch option trading strategy with an initial target of the 50% retracement level.

There are many different ways of trading the Fibonacci retracement levels in binary options trading. No touch, touch call, and put options can be calculated with a great level of accuracy with these tools. But initially, it’s better to master the art of put and touch options trading strategy using the 61.8% and 50 % retracement level. In a downtrend, the trader should use the most recent swing high and swing low to draw the important retracement levels. As an options trader, you must choose higher time frame starting from four-hour time frame and up above. Some experts have taken the Fibonacci option trading strategy to a whole new different level. They are trading only the 61.8% retracement level with price action confirmation signal. To be precise they have just put option in mind in the 61.8% retracement level for a down trend. Though the system is extremely profitable traders are highly advised to use proper risk reward ratio while trading the different retracement ratios in any financial instrument.

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