On the Internet, you can often find articles that say 60 seconds binary options are one of the most difficult types to trade. Fundamental data doesn’t work here because, on a 5 minutes chart, the trend changes frequently and indicator strategies aren’t suitable because they give false signals over short periods of time. However, there are also other strategies in addition to the indicator, and they are even easier and more efficient. Reversal and continuation of trend patterns are the most accurate determinants of further movement of the trend. In addition, due to the short timeframe, they often appear on the chart. So, let's look at the 60 seconds options strategy "double top/double bottom."
Double top forming
The use of the strategy "double top" is possible only with trading platforms that enable changing candlestick chart to line. Graphic patterns are easy to notice on a linear graph. Therefore, if your broker provides you with a simplified trading platform, maybe it’s better to change your broker.
Let’s turn to the "double top" forming. This figure is formed during an uptrend on the chart. If the chart has a down trend, we see the forming of "double bottom."
"Double top" consists of two consecutive peaks formed by the cost of the asset. The tops are formed by the result of the buyers and sellers struggle. Sellers are trying to drive the price up, and buyers start to reduce the volumes, thereby knocking the price down. The result is the first vertex. After this, sellers will try to raise the price again, and as a result, the price forms the second peak. However, buyers, because of the high price, exit the market, so trading volumes fall, and the price of an asset begins to rapidly decline, i.e., there is a trend reversal. It is believed that the trend reversal occurs at the intersection of price and support level.
A perfect figure "double top" is a figure with two price peaks located at the same price level, but this is rare.
Double top as the 60 seconds options strategy
It’s best to enter the market to purchase a PUT option when the price of the asset after the formation of the second top reaches the level of support and breaks it. At this moment, there is a trend reversal; the uptrend is changing to a downtrend, and the probability of profitability of your option is maximized.
If you trade 60 seconds options, you can use any other strategy, but don’t forget to keep an eye on your asset’s chart. To make it easier to understand when to use the "double top" strategy, we identified the major signals for you:
• The price dropped below the level of bottom;
• The price fell below the support level;
• After the breakdown of the support level, the price touches it again (now this support level becomes the resistance level), but the price fell again.
As you know, on the uptrend chart we see "double top," and on downward, we see "double bottom." The algorithm for "double bottom" is a mirror of "double top."
When the price breaks the resistance level up, purchase a 60 seconds CALL option. Sometimes, the maximum price can be high enough. In this case, you can purchase a CALL option without waiting for the breakdown and buy when the price has rebounded from the support level.
As a result of the short timeframe and frequent trend changes, the price can form three price tops or three price bottoms. In this case, they are called "triple top" or "triple bottom."
As you can see, 60 seconds options strategy "double top" is an absolutely profitable trading strategy. Therefore, if you chose to trade 60 seconds options, you shouldn’t rely on luck; pay attention to trading strategies, and they significantly increase your chances.