A quick look at the best types of strategies for one of binary option’s most popular expiry times: 5 minute.
Strategies For Five Minute Option Expiry
There are a lot of ways to trade the 5 minute binary options expiry. This time frame is one of the most versatile in terms of the types of strategies you can use because it is inherently volatile yet at the same time can sustain a trend long enough to be useful to us binary options traders.
You can look at the bigger picture with 5 minute candles or you can drill down to 1 minute charts to see the swings in momentum. When choosing a strategy it really comes down to what kind of trader you are, what types of analysis you prefer and in the end, the asset you are trading.
When it comes to assets there is really no one class that performs best in the 5 minute time frame although most binary traders prefer forex, commodities and indices, not necessarily in that order. These assets tend to have more day to day action because they are traded globally around the clock and will move up/down within their near term ranges with more conviction than less liquid stocks.
When using the 5 minute expiry set charts to 1, 2 or 5 minute for best effect.
Most strategies are adaptable to any time frame, the caveat is that the shorter the time frame the less reliable the signal. A candlestick signal on the daily charts is stronger than one on the hourly charts that is likewise stronger than one on the one minute charts.
- Price Action Strategies
- Scalping Strategies
- Japanese Candlestick Strategies
- Momentum/Swing Strategies
- Trend Following Strategies
This video shows how to use multiple charts at IQ Option. This can be useful if trying to spot trends over multiple timeframes as mentioned above: