Castor Binary Options Strategy
The Castor Binary Options Strategy is suitable for beginners, but obviously also for experienced traders. As we always suggest, you should try this strategy on your demo account and become confident with it.
Castor Binary Options Strategy Requirements
What you need to apply this strategy:
- Candlesticks Chart
- Exponential Moving Average (EMA)
- Relative Strength Index
- Additional Exponential Moving Average
Settings for the Castor Binary Options Strategy
Set you candlesticks chart with 1 minute time frame. You can apply this strategy also with a 5 minutes time frame.
- Set an Exponential Moving Average – 14 periods
- Set a Relative Strength Index – 12 periods, overbought and oversold lines at 50, or anyway set a middle line on the RSI oscillator. You can do it also on Trading View
Additionally you can use an Exponential Moving Average with 100 periods, this is useful to check the trend of your asset. The rule says that if the price is below the 100 periods moving average, the trend will be bearish On the contrary, if the the asset price moves above the 100 periods moving average, it will be bullish, or ascending.
If you are an experienced trader, you can use other ways to detect the trend. If you are a beginner, you can help yourself with a technical summary.
Also if this strategy works well against the trend we suggest always to follow it, according to the rule “trend is your friend”.
Castor Binary Options Strategy Entries
The rule provides that you have to invest when a candle closes by crossing the 14-period moving average. At the same time, the RSI, must cross the level 50. So you have to wait that the candle closes, and not invest while it is still running.
If the closing candle, and the RSI, cross above, we will open a call (Long) option. Plese see the image below.
On the contrary, as the image below, we will open a put (Short) option.
Once the closing candle, meets these rules. Invest immediately on the next candle.
Conclusions And Tips about the Castor Binary Options Strategy
It is very important, that you consult the economic calendar, before investing. But above all, try this technique with demo account, until you are an expert. Please also consider the usually, if the price is to close to the EMA 100, the trend could change suddenly, so pay attention.
In case of loss, the subsequent option, must recover the previous loss. In our case, we need to add, 127%, to the previous amount. So, investing 1 dollar, the next investment will be $ 2.27. And so on.