The scheme of trading binary options using Fibonacci levelsBeing a beginner in trading binary options, you probably already reviewed many strategies for trading binary options. All effective strategies are based on trade in the direction of the so-called trend. It is necessary to make a deal precisely when the price is reversed. This phenomenon in the world of trading is still called correction. When the time comes for the correction of prices for the selected trade asset, prices begin, as a rule, to unfold. To determine the depth of the correction of the value of the asset we need, we will use the Fibonacci grid.The Fibonacci grid is nothing else but a tool for technical analysis.Fibonacci gridAs we said earlier, the Fibonacci grid is an analysis tool that is based on the patterns of Fibonacci numbers. As this regularity looks, every number that follows the previous one is equal to the sum of the two previous numbers. For an example, it’s better to look at a series of numbers constructed using this pattern (1, 1, 2, 3, 5, 8, and so on).The construction of such a series will allow us to determine the depth of the correction of quotations of assets of interest to us. Using this series of numbers, you can also determine the size of the future wave of price movement.How this strategy worksAs a rule, every modern binary options broker is trying to provide a large selection of analysis tools for successful trading. The instrument that interests us most often is in the section of graphical analysis tools. It is called the Fibonacci Grid.Model the situation. Movement of quotations a certain period of time moved upwards. As you understand yourself, making a deal to raise in this case will not be the most correct decision. There is an opinion that it is possible with a high probability to turn the quotations in another direction.The optimal level of the conclusion of the transaction is the price increase due to the corrective movement. After the turn, quotes should continue their movement towards the trend.Defining this levelTo do this, we need to apply the Fibonacci Grid to the quotation schedule. Next, we determine the trend we need. Based on the growing trend, we will need to place the “0” level, that is, this will be our foundation. Accordingly, the “100” level will be our top.Now we need to place these indicators in the appropriate places on the quotation chart. Now it will be in order to examine the typical levels between which the correction will occur.– Between 50% and 62% for growing trends– No more than 62% for downward trendsHaving reached these levels, quotes have the property to turn in another direction and will continue their movement towards the trend.TRY BINARY OPTIONS TRADING Related ContentDouble Bolli - strategy for trading binary options 21.11.2018Reliable and Effective FX Trading Strategy Based on MACD, RSI and SMA. 27.03.2019What are analytical tools for a trader? 05.12.2018The nature of price movement on the financial market 09.07.2018The trend is a trader's friend 13.06.2018The direction of the market movement. How to determine? 09.01.2021Effective forecasting: Learning to filter information sources. 19.03.2019Why Traders Always Need A Strategy 05.07.2019Trading strategy "average growth" 15.01.2019Market trends: trend and flat 16.03.2019What is the difference between forex and binary options? 02.05.2019The role of the trading plan when trading Forex 17.04.2018The 80/20 Rule in Trading. How to implement it correctly 18.07.2018What resources you should consult to learn about trading options and other assets 26.04.2018Trading cryptocurrency. How to start? 06.05.2018