Earnings on indices binary options
While a trader could choose to trade the individual stocks or the index for these stocks, volatility can be very high, and with high volatility the trader will experience higher slippage and spreads on both entries and exits. Additionally, if he enters in the wrong direction, his loss can be quite large.
Is there a better way to trade the earnings reports?
Volatility 75 index trading inout deriv binary options new winning strategy
Below are two charts, the minute and minute mini Dow charts for this period. Notice how the gray dots and the blue cross encompass the entire week of movement. The gray dot identifies the top of the congestion area at and the blue cross identifies the bottom of the congestion area at on the minute chart and at on the minute chart.
In other words, with so many earnings reports due out, if results are mixed, congestion areas typically develop. The charts above show the prices for the congestion area prior to the reports being released. To limit the risk on trades, a trader could sell the daily binary option whenever price reached the top of the congestion area or buy the daily binary option anytime price reached the bottom of the congestion area.
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