16# Binary Options Strategy: Pivot Points Levels Trend

Pivot- based binary options strategy, 18# Binary Options Strategy: Pivot Point Levels Reversal

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  • No Comments Those of you that trade binary options know that reading technical charts is not a very easy thing to do, especially if you are new to binary option trading.
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  • It is useful to see the formulas used to calculate pivot points, so you can better understand how they are derived from past trading activity.
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  • If a trader can correctly predict where price will go, then it is very likely he will make a trade that will be in the money.

The Hammer will usually appear after the price has been declining and in proximity to a level of support. Because of that, it will usually signal a bullish reversal.

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Therefore, in order to buy a call option: 1. We need to detect a Hammer formation, which comes in contact with the daily S1 level, 2.

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The body of the candle following the Hammer needs to exceed the body of the Hammer itself and to close higher. The screenshot below visualizes these trading conditions and shows where a call entry should be made and where the option expiry is. The Shooting Star will usually appear after the price has been surging and in proximity to a level of resistance.

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Because of that, it will usually signal a bearish reversal. Therefore, in order to buy a put option: 1.

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We need to detect a Shooting Star formation, which comes in contact with the daily R1 level, 2. The body of the candle following the Shooting Star needs to exceed the body of the Shooting Star itself and to close lower.

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The screenshot below visualizes these trading conditions and shows where a put entry should be made and where the option expiry is.