«Dome» – forecasting options trading system based on Fibonacci levels

Trading tactics of binary options called «Dome»

Professional traders very often use combined techniques to predict the market in technical analysis. This allows them to maximize their financial performance in the binary market. Today we offer one of the simple examples of market forecasting systems – “Dome”. The work of Dome is based on the use of the Fibonacci graphical arc and the classical oscillator MACD indicator. This technical approach to generating signals allows us to accurately determine the market’s reversal trends and leads to a high and stable dynamics of capital increase.

Trading system «Dome»: technical requirements

The system requirements of the “Dome” strategy must be considered through the prism of the trading terminal for trading options. Therefore, immediately outline the range of necessary services and parameters of the platform that we need to operate the trading system:

– availability of a special service for constructing the Fibonacci arc;

– the possibility of applying indicator tools to the working schedule;

– Graph with variable timeframe;

– availability of turbooptions on the terminal;

– expiration period from 60 seconds;

– maximum payments on options;

– Good selection of assets;

– The minimum threshold for entry into trade.

As an example of a service with such capabilities, we offer a platform from a licensed Binomo broker. The terminal of this company has professional equipment and provides the most optimal financial conditions for working in the option market – the minimum starting capital is $ 10, the option amount is from $ 1.

Trading system tools

So, we came to the technical side of the system. To mark the graph and apply this approach, set the following technical set of analysis tools on the quotation chart:

– The Fibonacci Arc. These are classical levels calculated by a special algorithm, but not linearly constructed, but in the form of arcs that outline possible ranges of fluctuations in quotations. The use of arcs allows us to identify more dynamic market movements, which leads to better forecasting efficiency. To build the necessary layout, open the Binomo terminal’s graphical tools service, select the Fibonacci tool in the Arc mode, and connect local extremes of the market with it;

– MACD indicator with standard format settings. This technical service will be used as a means of confirming the spread of quotations, which will maximize the effectiveness level of the strategy signals.

All the specified set of services is set to the timeframe of the working schedule 30 seconds. After configuring the workspace of the terminal, you get the following markup:

Dome market forecasting system: trading rules

To open the PUT trade, it is necessary to wait for the moment when the quotes of the asset after reaching one of the Fibonacci arcs will turn to decrease, and the MACD indicator will form the divergence of the oscillator lines down:

To open the CALL trade, it is necessary to wait for the moment when the quotes of the asset after reaching one of the Fibonacci arcs will turn to growth, and the MACD indicator will form the divergence of the oscillator lines up:

Expiration

Taking into account the periodicity of the frame of the trading quotes schedule, the optimal time period for expiration of options in this case will be a period of 120-180 seconds. Such a narrow trading range allows you to accurately fulfill the forecasts of the system and leads to a quick result.

Risk management

In fact, the system offers investors to work in the mode of trading scalping, which is characterized by the greatest risks. For this reason, we propose to use options with initial value or trades to reduce losses, the risk level of which does not exceed 3% of the invested amount.

OPEN ACCOUNT

“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”