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Trading by supply and demand zones on Forex - features and strategy. Trading system for binary options “Iron Levels”

Will there be a strong level?
Greetings to all readers of our site and all those who want to become successful in financial market. Our theme new article will be a long-term strategy for binary options called “Iron Levels”. Of course, the name is very interesting, but it rather carries with it a certain convention.

I’ll say right away that you must clearly understand that there are no ironclad levels in the market. Any level on the market, one way or another, will be broken by the price and it is only a matter of time. Even if you have noted at first glance a quality and global level, there is still no guarantee that this level will withstand the price.

In general, all trading comes down to a game of probabilities. That is, you never know where and how the price will go. Now you have set a level, you do not know in advance how the price will react to it. Perhaps she will turn around on it, perhaps she will sew it through without any effort. Perhaps the price will roll back a little and the like; in general, there are a lot of possible scenarios and you cannot know in advance which one will unfold now.

In this case, you simply set a certain level, you see that it is very strong, that’s why you think that the probability of a reversal from it is much higher than the probability of its breakdown. With all this, note that the probability in this case is keyword, don't forget about it!

Long term at gunpoint

So, as you understand, the long-term strategy for binary options is based on the fact that we will purchase this or that option for a fairly long period of time.

Who is this strategy suitable for? First of all, it is suitable for those people who are looking for a conservative and simple strategy for binary options for trading. In addition, due to their workload, these people simply physically cannot devote much time to trading. For example, a person is constantly working, he is busy with something else. Therefore, he aims to work within the framework of an approach that will not take up much of his time, but at the same time, this approach will be simple, logical, and most importantly, workable.

Description of the strategy

As has already become clear, we have a simple long-term strategy that is very easy to use. I think that even any beginner without special effort will be able to figure out how to use this trading strategy on binary options in practice.

First of all, I would like to point out that there are several key indicators within this strategy. The most important indicator is SUPDEM. This tool automatically builds so-called supply and demand zones, from which we will work.

There is also a BKGA 10 SMA indicator. This indicator is displayed on the chart as an arrow. And the arrow itself appears when the price breaks through a moving average with a period of 10 in one direction or another. In addition, the chart has a moving average with a period of 200. In this case, this indicator is of an auxiliary nature and allows us to understand what trend we are within globally.

There will be few signals

The working interval for this strategy is D1. Therefore, you must clearly understand that there will not be a large number of signals through this system. But, for example, if you set par 10 on the chart, then you may have several fairly good signals in a month. I am more than sure that many of you will not be satisfied with this.

In general, you should understand that the main working interval for this strategy is D1. As for the underlying assets, here you can choose any asset that you like; there are simply no special restrictions. As part of this strategy, you must clearly understand that if the price has approached a certain level, then we still have no guarantee that the price will reverse at it.

Download

A huge number of different nuances can affect the result of a transaction; it is important to understand how strong the level is; in addition, a transaction along the trend will be of higher quality than against it. It is worth understanding that in a strong upward trend, resistance will be broken through, just as in a strong downward trend, support will be broken through. If we talk about the presented trading strategy, then if you do everything correctly and according to the rules, then it is quite possible to achieve about 75% of profitable signals over a long distance, and this is a very good figure.

Using a strategy

Now let's talk about how to use this strategy correctly in practice. First, let's talk about the rules of this strategy. To purchase a call option, we need to wait for the moment when the price even slightly touches the level formed by SUPDEM, and a green arrow appears. In addition, the signal will additionally strengthen if the price is above the 200 SMA, which will tell us about the development of an upward global trend.

Watch the strategy review video

As for the rules for opening a put option, here we wait for the level to touch, for the red arrow to appear, and if the price is below the 200 SMA moving average, this strengthens the signal. The expiration time for this strategy is 10 candles or 10 days. For better understanding, let's look at a real example!

Here we see that we have a level, and where I marked with a red arrow, we have a touch on this support level, and a green arrow appears. In addition, we see that the price is located above the blue moving average 200 SMA, which indicates to us that an uptrend is developing. All these conditions are suitable for you and I to purchase a call option for 10 days. As you can see, as a result, the deal worked out just fine.

As you can see, there is nothing complicated here, you just have to understand that with such a large interval, you will need to be patient, and there will be few transactions!

Conclusions

The presented long-term strategy for binary options called “Iron Levels” is the choice of those traders who prefer conservative trading. In any case, this strategy is very interesting and I can safely recommend that you pay attention to it.

A person can be given a really good and high-quality strategy, which has proven its effectiveness over the years. However, being a psychologically unstable person, he will simply lose money through this system

If you are a follower of aggressive trading, then it is better for you not to even look closely at this strategy, because with 10 currency pairs, on average you will receive 5-6 signals monthly. I hope that this material was useful to you and you can use it wisely in practice!

Hello! If someone assures you that a battle can be won without pre-thought-out battle tactics, and a war can be won without a prepared plan, you will probably twist your finger at your temple. There are, of course, all sorts of accidents, but those who rely only on chance will be considered a failure.

Here it is for successful management business, first of all, you need a pre-prepared system.
The same applies to BO trading.

Working with binary options is inherently very specific. Therefore, it is important to be able to choose good systems that can be useful.

For almost every trader, having a high-quality system that is thought out to the smallest detail is a must-have nuance. Here you need to create it for yourself, for specific features, because you can’t always take someone else’s.

The process can be very labor-intensive in many respects, but it is better to spend time on it in order to ultimately get the desired result.

What I'm talking about today:

Trading systems for binary options

What, in general, do I mean when I say the word “system”?

Such a system is special set special rules, which allow you to conduct successful trading. You need to adhere to several criteria that will help you achieve success. The set must be created in advance.

It is also important to constantly improve and improve it. As the trader works, he or she will likely notice various patterns in how the prices of specific assets behave.

At certain times they can rise, fall, etc. A good trader will easily be able to notice such fluctuations and highlight all the key features, which in the future can turn out to be an extremely useful tool for achieving goals.

The trading system includes a lot of different components, including:

Trading strategies.
Features of work that are directly related to personal factors.
Analytics of the behavior of specific assets.
Monitoring the entire market, which can have a direct impact on the overall performance of transactions.

For example, if someone was able to identify a pattern that the number of successful transactions increases precisely after lunch, then it is better to engage in trading. It is unlikely that such work would be advisable in the morning, when the percentage drops significantly.

You can add updated rules to the system and adjust it to achieve even better trading results. There are many explanations for such observations. But they can always be an additional advantage that has a positive impact on profitability.

It is IMPORTANT to try to understand the reasons for such success. They are always there, but not everyone can correctly detect them.

For example, if silver is traded, then the peak of activity occurs in the afternoon. This influences the occurrence of predictable and quite noticeable market movements.

Competent trader with good experience will be able to track the main probabilities and predict the behavior of the asset in the near future.

You can find similar patterns in many assets. Such knowledge can be very useful for every user. They make it possible to clearly identify potential risks, calculate income and all other important nuances of this type.

Development of your own system and its features

Trading system has a lot of unique components, nuances and features. Therefore, creating it for yourself will not be so easy. This process can be quite lengthy.

Rome was not built in one day, or, as our compatriots say: “Moscow was not built in one day either.” Be patient.

Therefore, you will not be able to achieve any result in one or two days. The basic rules and patterns that form the basis for creating a system are not identified so quickly.

This may be testing a virtual account of a specific trading platform, but this method not the best. It is advisable to gain experience through real trading.

A real account can be called the most adequate tool for gaining experience, testing your own knowledge, skills and abilities. This is where cent options, which have minimum rates, can come in handy.

Here the investment size can be quite small, which opens up amazing opportunities for developing a system without significant financial costs and the risk of losing significant funds.

If the user has a sufficient amount of capital that can be risked without much consequences, it is quite possible to engage in traditional options. You can place bets that seem optimal for certain opportunities.

But this approach is not the best in every situation. It’s logical to start by limiting yourself to minimum bets in order to get to the heart of the matter, understand the smallest nuances of trading and other details.

This testing format for developing your own system would be an ideal option.

Psychological component of the system

I have always believed and continue to think so: every successful trader should be a little bit of a psychologist, that is, be able to understand the motives of human behavior.

There are several important rules that take into account psychological characteristics specific user. All people are individual, they have unique characteristics of psychology and character, which simply cannot be ignored.

If a person is cheerful in the morning, ready to achieve success, and not be lazy, then now is the best time to start trading. Here, the best option would be strategies that involve more work in the morning.

You can monitor assets during a given period. Some may experience a drop in activity around lunchtime, which in itself will be a precluding factor for achieving the desired results.

A person simply may not have time, etc. Always best choice transactions will be carried out according to a proven strategy and at the optimal time, when the risks are minimal.

It is important to take other psychological aspects into account. If a person is very worried about any, even the most insignificant loss, then perhaps it is not worth engaging in options at all.

After all, it is almost impossible to achieve a 100% effective result here.

Even the most experienced traders who earn significant and stable income, sometimes they make mistakes and make losing bets.

All such rules need to be fixed in some way so that they are always at hand and allow you to be on your toes. Before any trading day you need to remember them in mandatory, until it is possible to bring them literally to the state of automatic execution.

Then the work can become really clear, simple, like many other things, for example, riding a bicycle, driving a car or something similar.

Time frame nuances

The banal phrase “time is money,” despite all its banality, remains an infallible truth in our case.

For each trading system it is extremely time may be an important factor. Here we are not talking about the timing of contracts, but about a more global concept. You need to understand how long a particular system will be designed for.

If all conditions are met, the event can occur with a high degree of probability. All such conclusions are made based on the rules used directly in the system.

She might be short term, when trading is carried out within just one day. Timing may be average, when the work is carried out over approximately one week. Long term option involves trading when the time frame exceeds seven days.

Each user, based on their personal characteristics and capabilities, will be able to easily select the most successful option that will bring benefits.

But you will have to work hard first. The result depends only on the person himself, who will analyze mistakes and learn new tools for successful work.

The best trading systems for binary options

I am telling you the importance of the system. Perhaps the time has come to tell you what they are like.

Exists large number a wide variety of systems that can simplify trading and make it more efficient. But for beginners, it is not easy to use systematic processes of this level.

However, we must strive to fully understand them, because this can affect the work and help achieve a good result. Special systems may have different nuances of use, rules and other details.

There are many options, but they are all united by what they form uniform rules for trade. For a specific user, there will probably be an optimal algorithm that will be the best for him.

If you do not adhere to such systems, work turns into fortune telling, where intuition becomes the main tool, and not skills along with knowledge. Several main systems can be distinguished:

Simple.
Graphic.
Indicative.
Short term.
Copyright.

Each option is good in its own way. Such diversity allows you to find the ideal system for a specific user and his preferences that can generate profit.

But success can only come in cases where the most responsible and professional approach to business is used. The user must clearly understand his own system, its basic principles, patterns of movement of asset prices on the market and other nuances.

All this allows you to get your advantages.

For beginners, the best system may be something simple. You shouldn’t immediately pursue complexity, which supposedly guarantees efficiency. If a trader without experience does not understand the key nuances, you can forget about success.

There are several fairly simple but popular methods:

Triple confirmation of the transaction.
Trading based on trend features.
Market Entry Accuracy.

It's a small list, but you might find some good stuff in it. These approaches are considered the most popular and simplest. But in skillful hands they can produce good results.

It is also IMPORTANT to understand how to use the systems. It is necessary to choose the optimal time for specific parameters. Strategies are an indispensable element of systems.

You can use one or more. It all depends on the individual characteristics of the user. To choose the ideal method, you need to approach the process carefully. Awareness and full understanding of the situation will be the best adviser in such moments.

The best system for binary options and its choice

“Most people suffer from laziness of mind,” wrote Marcel Proust. And damn, he's right! We all want to quickly skim the article material and find information about some better system, by resorting to which we can always successfully trade binaries.

But there is NO UNIVERSAL SYSTEM that would be beneficial for any trader, regardless of his general level, degree of knowledge, experience and everything else.

You need to select it for yourself, taking into account the main features and nuances. Only such an approach will allow you to choose a really good system.

Many nuances must be taken into account:

Don't chase quantity.

It is better to try to use only one system, but give it maximum attention. A thorough study of all the details may turn out to be the right choice. It’s better to do this than to use many systems at once, but still not fully understand the principles of their functioning.

For trading to bring sustainable success, a certain amount of time must pass. Understanding the system takes a lot of time.

Don't chase fashion trends either..

You need to be selective in your choice, because all traders have different psychology. Everyone’s vision of the market situation is also different. Therefore, systems must be individual.

In principle, there can be no universality here. We need to realize our strengths, highlight preferences. On this basis you can develop and create a winning system.

We must learn to manage own risks and money, because the system simply will not function without it.

For some reason, many people ignore these points, thereby making significant mistakes. The ability to manage risks and money is a kind of base that ultimately allows you to achieve success.

We need to create a clear trading plan, which is advisable to adhere to regardless of external factors. It is very difficult to work without a plan, because problems will arise with everything.

High-quality binary options system, selected for individual characteristics specific user, may turn out to be a kind of ticket to successful trading.

May success accompany your business!

Each trader must work out such a system for himself and choose the optimal strategy. This will make it possible to enter the market in best time, select the best assets without errors and perform all other important tasks.

The emergence of one or another price dynamics can be explained by the most in various ways. For example, using Forex supply and demand zones, which are capable of giving the price a very strong impulse, which leads to its significant rise or fall. It is about such zones, methods of identifying them and methods of application in trade we'll talk in this article.

Reasons for the emergence of supply and demand zones

Most often, price movement is caused by an imbalance between the volumes of an asset offered by sellers and demanded by buyers. If buyers want to purchase more than sellers want to sell (demand exceeds supply), then the price begins to rise. And if sellers want to sell more, and buyers do not want to buy as much (supply exceeds demand), then the price begins to fall.

With the imbalance described above, the price continues to move as long as it exists. But at the moment of equalization of supply and demand, the intensity of price dynamics rapidly decreases (if other market factors do not influence it).

Thus, the trader faces the following tasks:

determine the zones in which supply or demand are predominant (positions are opened in these zones);
determine the zones in which supply and demand become equivalent (profits are fixed in these zones).

Identification of supply and demand zones on price charts

The method of finding these zones is similar to finding resistance and support levels. That is, it is necessary to record global and local extrema:

maximum levels will be located in supply zones (ZZ);
Minimum levels will correspond to demand zones (DS).

However, not all extremes formed by the price will correspond to the sought zones. The principle of filtering false extremes is as follows (Fig. 1):

the level of the true ZP determines the maximum from which the price turned down very quickly;
the level of the true AP determines the minimum from which the price turned upward very quickly.

Extrema that do not fit the definition of ZS and ZP are support and resistance levels. At the same time, in contrast to these levels, the strength of the ZS and ZP is inversely related to the amount of its testing by the price. This is due to a consistent decrease in the excess number of sellers and buyers (supply and demand, respectively) in the formed zones. Therefore, most often these zones are tested no more than 2 times.

You should also take into account the time the price is in the PO and PO. The ratio between sellers and buyers in it is inversely proportional to this time.

There are also similarities between support and resistance levels and ZS and ZP. It lies in the fact that when the price overcomes the ZP down or the ZP up, they often become, respectively, ZP and ZS.

Trading strategy for supply and demand zones

Having analyzed all the above-described features of price dynamics near and inside the supply and demand zones, you can create a profitable trading strategy, described below.

First, you need to wait for the demand or supply zone to form and mark it on the chart. It should be taken into account that each such zone has two boundaries - lower and upper, and, consequently, a certain width.

Then you should wait for the price to return again inside the identified zone (Fig. 2). After this, a pending order is placed:

for the demand zone - to buy at the upper limit;
for the supply zone – for sale at the lower border;

and StopLoss:

for the demand zone - below the lower border;
for the supply zone – above the upper border.

Thus, the smaller the width of the identified zone, the smaller the Stop Loss and, therefore, the lower the risk.

TakeProfit is placed at a distance from the pending order 2÷3 times further than the set StopLoss. At the same time, you need to make sure that on the path of the price to Take Profit there are no strong key levels and zones that can stop and reverse it. If they exist, then you should not place pending orders.

Indicator of supply and demand zones

The results of any trading strategy largely depend on the correct analysis of the market situation and making decisions accordingly. For trading in supply and demand zones, such an analysis consists of correctly marking the boundaries of these same zones on the chart. The technical tool described below, called Shved Supply and Demand, can help with this (download ).

The principle of its operation is to automate the algorithm described above, based on identifying extreme points and analyzing each of them for compliance with the identified zones. This eliminates mistakes that a person may make. On the price chart, the results of the SSD work look like horizontal stripes starting from the minimum or maximum (Fig. 3).

Each zone type is marked with a specific color. Additionally, the strength of each of them and the number of tests are indicated.

The trading strategy for supply and demand zones constructed by the SSD indicator does not differ from that described above. Immediately after it is displayed on the chart, the trader needs to set a pending order, Stop Loss and Take Profit according to the rules outlined in the previous section.

Video

In binary options markets, quotes are driven by supply and demand. When supply is greater than demand, the quote begins to fall, but if demand becomes more active, the market grows quickly. It will fall until the quote is in the demand zone, from where a new round of upward growth will begin. Thus, players “have fun” and earn fortunes by chasing quote charts back and forth.

Therefore, if you, as a trader, learn to understand this “wave-like movement” and are able to determine the “bars” of supply and demand, you will be able to earn money, but if you don’t learn, there will be no earnings. A trading system based on the movement of these levels of supply and demand will allow you to increase the deposit amount by 3 times in just six months, so any trader can try to use this technique.

Brief description of the strategy

To independently carry out technical analysis, you will need to install a good and stable Meta Trader 4 platform on your computer (you can download it here), and it is best to trade with the Binomo brokerage agent, since only this broker has a minimum lot bet of only $1, other lot brokers have the stakes are much higher.

You will also need this software - you can download it and install it in the root directory of the downloaded platform (it is located on drive “C”).

After all the settings, the working diagram should look something like this:

On the diagram, the green areas determine the supply level, and the red areas indicate the demand level. The arrows that will appear on the chart will indicate the points where the moving average price intersects, and this clearly indicates that there is a tendency for quotes to decrease or increase.

Receiving trading signals

Signals indicating to a trader that an asset is growing are the following signs:

The cost enters the demand area indicated in red;

An arrow appears pointing upward, which indicates that the quotes are turning upward in the short term.

After these signals appear, the trader can enter into an agreement to increase the value of the asset.

Signals indicating to a trader that an asset will fall are the following signs:

Cost enters the demand area, indicated in green;

An arrow appears pointing downwards, which indicates that the quotes are turning downward in the short term.

After these signals appear, the trader can enter into an agreement to reduce the value of the asset.

The diagrams show the conditions for concluding transactions - a rebound from the level of supply and demand, not shaded in green and red. These levels can be considered quite powerful, since they are tested several times in a row by the value of the asset. Naturally, the colored level is considered a level of secondary importance, since they appeared for the first time and have not yet been confirmed by the price. It is best to start entering the market during the rebound from the uncolored supply and demand levels.

Trader's earnings on this system

Departure from an already confirmed level can bring the trader 8 “positive” transactions out of 10 carried out by him. Thus, closed 80% of transactions will allow increasing the trader’s deposit by 3 times, however, provided that the size of the transaction does not exceed 5% of the deposit size.

Which options should I work with?

U brokerage company Binomo has a number of options suitable for working with this system (for example, “Turbo options” or “Classic options”). If you set the M1 time frame on the template, then the optimal expiration time is 5 minutes; if the template has the M5 and M15 time frames, then the expiration time should be within 30 minutes.

You can try to use these developments in your work, perhaps in your hands they will show even better results!

Download the “Iron Levels” strategy for binary options trading for FREE

Good afternoon everyone!

Exchanges have existed on earth for hundreds of years, but, as in ancient times, today trading on the exchange is subject to fundamental economic laws. One of the main ones is the law of supply and demand. Despite the computerization of processes on the stock exchange, they also influence price movements on the market.
Nothing could be simpler or clearer. When demand prevails over supply, the price rises steadily. Conversely, if supply prevails, the price will inevitably fall until it reaches the demand zone. I built a trading strategy on determining the levels of supply and demand and have been using it quite successfully.

Trading using the “Iron Levels” strategy brings large, truly tangible profits. Over the past 6 months my deposit has tripled. A really profitable and super universal strategy. And for binary options, in general, you can’t imagine anything better. Well, let’s finish writing odes of praise to the strategy and move on to its consideration.

To plot supply and demand levels, we need the Meta Trader 4 trading terminal, you can download it And as is usually the case at the beginning of testing new strategy, you need to copy the template and indicators to the root directory of the MT4 terminal, here is the link:

To see how this is done, look online. We will conduct trading at the brokerage company Binomo, for the simple reason that we want to test the strategy and do not want to risk large amounts of money. And the conditions of this company are perfectly suitable for this (minimum deposit - 10 dollars and mini lot - 1 dollar).

If you did everything correctly, you will see the following picture:

As you can see in the graph above, there are green and red zones. Green - supply levels. Red ones are demand levels. The points where red and green arrows appear show the places where the moving average intersects, indicating a change in the downward or upward trend.

How to receive trading signals?

To receive trading signal To enter the market you need to open the asset chart and wait for the signal.

For an increase contract:

Quotes entered the demand zone
An up arrow appears (quotes will rise in the short term)

We conclude a contract for an increase only after the appearance of the listed signals:

For a short contract:

The price has reached the green zone
A down arrow appears (the price will fall in the short term)

We conclude a downward trade only after all the signals have appeared:

As you probably already noticed, in the screenshots shown above, transactions were made when the unshaded levels of supply and demand were reached. Such levels are more powerful due to repeated price testing. From this we can conclude that the shaded levels are of secondary importance to the unshaded ones, since the shaded ones arise with a one-time achievement and do not have testing costs. Therefore, concluding contracts from unshaded levels is more promising.

How much do I earn with this system?

Analyzing my experience of trading using the above system, I can say that trading on rebounds from unfilled levels gives 80% of profitable contracts. For binary options trading, this is a very decent result. When using the TS, my deposit increased 3 times, while I almost always use no more than 5% of my deposit