When to enter trades in Binary Options

When I first started trading binary options, one of the hardest things for me was figuring out when to enter a trade.The two most common methods people use are entering on a touch of a support/resistance line or entering after conformation.

As talked about in the last two post, price action can help you set up those support and resistance lines of what values you should be entering trades at. A touch trader would enter the trade right when price touches one of those lines. A conformation trader would wait until the candle stick closes and ente if the next candlestick is moving away from the support/resistance line. An example is below.

EUR/CAD 5min candlestick chart, freestockcharts.com

Lets go through the possible trades on the chart above.

Lets start off with #0 on the chart. At this point you don't know the EUR/CAD is going to start ranging so you might enter the trade off the resistance line 40mins earlier. Touch traders would enter the trade and lose but conformation traders would stay out of the trade as the next candle is green( indicating a increase in price).

#1: This trade is off the trend line of the previous two highs. Touch traders would win and conformation traders depending on where they enter might or might not finish in the money.

#2,3,4: These are trades off the trend line, touch and conformation traders would finish in the money on all three.

#5: Touch traders would enter on the support line and would lose, conformation traders wouldn't enter the trade since the next candle is red.

#6,7,8: These are more trades off the trend line and both types of trading would finish in the money on those trades.

I personally trade when price touches the support/resistance lines. While touch trading is more risky, I find overall it bring in more profit.