Introduction:
Binary options are a simple way to participate in the negotiation of financial assets. It is very easy and simple the understanding its operating principle. As the name indicates its behavior is binary, comprising only two possible values (is like the 0 or 1 of the bit value), you win the predetermined profit percentage or you lose your investment.
Moreover, in binary options no matter how many pips you will win or lose, but only if it is above or below the entry price (it is suggested the close price of the last bar). So, there is a big question, what is the best option to take after the close of a bar? In this article we make an analysis of the history close bars during the current year and making conclusions about the binary directions for our orders.





The Strategy:

In binary options the important is to be above or below the entry price (In this case is suggested the last close price bar). Furthermore, that is not an issue having the worry of optimizing the number of pips to gain or minimize the number of pips to lose. So was done an analysis from the beginning of this year, making sure that the bar immediately following the bar that was just closed will close above or below the previous closing price and putting it in a table and after in a pie graph.
In order that in the entry orders (up, down) must be choose the duration in line with the timeframe of the bar we are examining. So, the duration of our order is aligned with the last bar duration.

There are analyzed the following pairs:
  • EUR / USD
  • EUR / GBP
There are analyzed the following time frames:
  • 10 minutes
  • 1 hour
As can be seen from the graphs, there is a slight advantage to follow the trend of the last bar. That is, if the last bar was "green" we bet on rising (UP) and if the last bar was a "red" should bet on the descent (DOWN)



As can be seen in the graphs, there is a slight advantage to follow the trend of the last bar. That is, if the last bar was "green" we bet on rising (UP) and if the last bar was a "red" should bet on the descent (DOWN).

Conclusion:

The intention with this article is to show the importance of trend analysis after the close of each bar and apply this knowledge in binary options. We must also take into account that in binary options, there is an initial delay in placing our orders and the amount paid in percentage is not 100%, but 90% and in some instruments a little less. So, in the building of our Binary Option strategies this issue could make same difference.
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