How to use Mitsuboy’s trading stratregy in binary options Answered!

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Mitsuboy’s Trading Strategy

Finding a working trading strategy is what most traders aspire to do. The complexity is not always the key to becoming successful. One of the binary options trading professionals named Mitsuboy ensures that the trading style can be quite simple. Essentially, the style of his own is mostly based on price action, whole/round numbers, daily Fibonacci levels and Fibonacci pivot points.

Mitsuboy advises to analyze charts in order to pinpoint important levels at which price will experience a reversal. As the price action trader, he sees no sense in exploiting many irrelevant technical indicators that might create certain confusion, but rather focusing on top 3: the Value Chart, 62 EMA and 200 EMA. These indicators are not used as the chief determinants of how trades should be performed. Instead, they are auxiliary tools that serve as confirmation for the trades and general direction of the trend.

Further, we will describe the role of price action, whole/round numbers, daily Fibonacci levels, Fibonacci pivot points and define how they all together constitute the Mitsuboy’s trading strategy.

Price Action

Price action is one of the concepts which is frequently misunderstood by BO beginners. It is a common mistake to think of price action as of trading based on candlestick patterns. The truth is that candlestick patterns derive from price action, but not comprise it. In addition, candlesticks are different for every timeframe and in fact not all traders utilize the same timeframe. However, price stays the same on all timeframes.

Therefore, the main idea of price action is to identify particular price at which there are going to be a substantial amount of buyers or sellers.

Whole numbers/Round numbers

When referring to the concept of round numbers, we would admit that they are natural levels of support & resistance. Unfortunately, many options traders underestimate the value of round numbers. These levels serve as the major points around which orders are placed. Hence, when the market moves towards these levels, the price move is actually countered by such order flows and small retracement usually occurs.

To make the Mitsuboy’s strategy work well for you, it is highly recommended for all BO traders to install a whole number indicator on their charts.

Fibonacci Levels

It is very important to utilize Fibonacci Levels in your strategy, because they are valid areas of support and resistance. Mitsuboy’s personal preference is making use of the daily Fibonacci indicator. It works in the following way – it draws fib lines based on the previous day’s high and low.

It is possible to outline the most valid and also the strongest levels for daily fibs:

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  • 0.0 (previous day low)
  • 100.0 (previous day high)
  • 61.8
  • 161.8
  • -161.8

So, when price hits these levels the probability of the reversal is pretty high. Additionally, Fibonacci drawing tool can come handy. It is advisable to use it with this strategy in the following way: draw from the foregoing high to the foregoing low of the most recent trend and then simply take trades based on the 50.0, 61.8 or 127.3 and 161.8 levels. Technically, these trades are taken on such levels mostly in case of confluence.

Fibonacci Pivot Points

Now we have come to Fibonacci Pivot Points. Basically, they serve traders as levels to identify directional movement and support/resistance. Fibonacci Pivot Points are quite flexible in the exploitation. For instance, you can use them as dictating where price will actually go or as possible reversal areas.

Let’s put it more practically. As soon as price breaks over pivot you should expect for price to test R1 as resistance. Consequently, if it breaks through the R1 line, then you definitely know that price is in a strong uptrend. After breaking the R1, you should wait for price to retest R1 in order to take a call and once price touches R2 – to take a put. In case price breaks R2 then you need to wait for the retest to take a call and then the touch of R3 to make a put.

Just the same is vise-versa if in a downtrend. The only exceptions are its S1, S2 and S3. As a rule, trade taken based on these levels should have confluence to ensure a higher chance of it being ITM.

Mitsuboy’s Trading Strategy – putting it all together

The final step is to put all the strategies discussed above together and use them as one. It is not easy to do at first sight, but the profitable outcome will not let itself wait too long. In addition, we advise you to be patient. This means that price must touch these levels and no alternatives are accepted. If you see that price is only close to the level then do not get in the trade. Likewise, in case you miss the touch of the level you should not get in after. The reason is simple – the price is already wicked or moved in the opposite direction. Thereby, it would be much better to use other opportunities during your trading session.

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