This strategy in the world of binary options is considered to be one of the oldest. It was used successfully even before the advent of binary options. It was used for many years by many traders. This strategy is based on determining the moment of the trend reversal. In other words, this strategy tracks the moment when the trend is going to change its direction. This strategy works with a long-term, medium and short trend.

Binary options trading basics

In the case of tracking the reversal of the uptrend, we will analyze the low highs.

In the case of tracking the reversal of the downtrend, we will monitor the high lows.

On the chart, we will use 3 points. Hence the name of the strategy.

As an example, we can use the situation when the trend is upward. As we have noted before, this strategy includes 3 points. Let’s analyze with you what point is responsible for what.

  • At the “1” point, we must note the maximum that the uptrend reaches and starts its course in the opposite direction.
  • At point “2” we note the achievement of a minimum price for the rebound and its growth to the maximum.
  • At point “3” we fix the lower maximum, but this is when the price does not return to that same maximum at the point “1”.

Now, marking the points we need on the chart, we will expect a signal for committing to trading. Now we will not need to miss the moment when the price falls below the “2” point. This will be the end of our figure.

This strategy is perfect for novice traders, as it is quite simple to use and does not require special skills. Another plus is the ability to combine this strategy with other tactics, trading tools for both novice traders and professionals. Use it with trend strategies or with those that involve levels of support and resistance.

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