Trend reversals, pivot points,60 seconds options strategy—these titles are prevalent in the education materials of many brokers. However, we trade options not only on pivot points, and not constantly looking for a "double bottom" or "double top," to understand that trends will reverse soon. We trade whenever we have the time and desire. In addition, sometimes we need to know that the trend will continue, and won’t turn, and we bought the right option. Imagine a situation where you purchased a60 seconds CALL option. Is it more important to you to know if that trend will reverse or will continue? If the trend reverses, you will lose money, and if you make sure that trend continues, you can not only save your nerves but also buy another in the same direction and thus increase your profits.
So, let's look at how we can ensure that trend will continue. The "flag" strategy can help us.
This 60 seconds options strategy signals a lull in the market and the continuation of a current trend. The flag shows us that active traders subsided, and now, they gain strength to continue to trade on the current trend.
Before Flag, we can see great activity on the chart. During formation—low activity and after—it increases dramatically. At the same time, in a downtrend, flags are formed faster than in an uptrend.
The "Flag" begins to form when price fluctuations occur in a certain range (width of the flag).
It is important to note that the flag is formed for a short period, so the 60 seconds options strategy flag is suitable for short timeframes.
Trading binary options with flag
The Flag strategy is simple. First, we need to determine the current trend on the chart: upward or downward. Then, it is necessary to analyze the chart for the flag. If the chart is forming the flag, the current trend will continue, and it’s better to refrain from trading until the price doesn’t break the flag in the direction of the trend. If you purchased an option before the flag began to form, you can calm down a bit and wait for the continuation of the trend.
If we have an uptrend, we buy a CALL option only when the price breaks the resistance level (upper limit of the flag). Ina downtrend, we buy PUT options when the price breaks the resistance level from top to bottom (the lower limit of the flag). If you start trading within a flag, you can enter the market in reversal or roll back.
This chart demonstrates the effectiveness of the flag. On the EUR/USD asset chart, we have an uptrend and a flag that shows the continuation of the current trend.
The 60 seconds options strategy flag is effective at all time intervals. Graphic patterns are most effective. With their help, you can significantly increase the efficiency of your trade.