Submit by Robert 2024

Overview

This strategy utilizes the "Binary Arrow" indicator for entry signals and the "Magnolia Zone" support and resistance zones to validate trade direction. Designed for short-term binary options, this setup targets reversals near significant price levels.

Indicators and Setup

1. Binary Arrow Indicator

   • Generates directional arrows based on reversal conditions:

     • Up Arrow: Signals a potential Call (Buy) setup.

     • Down Arrow: Signals a potential Put (Sell) setup.

2. Magnolia Zone Support and Resistance

   • Support Zone: Marks strong potential support levels where price is likely to rebound upward.

   • Resistance Zone: Marks strong potential resistance levels where price is likely to reverse downward.

3. Timeframe and Expiry

   • Timeframe: 1-minute or higher (e.g., 5-minute for more filtered setups).

   • Expiry Time: 5 candles from the entry point (e.g., 5 minutes on a 1-minute chart).

Trading Rules

Call Option (Buy) Entry

1. Support Zone:

   • Wait for the price to approach or touch the Magnolia Zone Support.

2. Binary Arrow Up Signal:

   • A Binary Up Arrow must form on or near the support zone.

3. Entry:

   • Enter a Call Option at the close of the candle with the up arrow signal.

4. Expiry:

   • Set the expiry to 5 candles from the entry.

Put Option (Sell) Entry

1. Resistance Zone:

   • Wait for the price to approach or touch the Magnolia Zone Resistance.

2. Binary Arrow Down Signal:

   • A Binary Down Arrow must form on or near the resistance zone.

3. Entry:

   • Enter a Put Option at the close of the candle with the down arrow signal.

4. Expiry:

   • Set the expiry to 5 candles from the entry.

Additional Tips for Optimal Execution

• Best Market Conditions: Use this strategy in stable or mildly trending markets to enhance signal reliability. It is less effective in highly volatile conditions.

• Asset Selection: Works best with high-liquidity assets such as major forex pairs or popular stocks.

• Avoid Major News Events: Avoid entering trades near high-impact economic announcements to reduce unexpected price spikes.

• Risk Management: Risk 1-2% of your account balance per trade to manage account health.

This strategy capitalizes on reversals at key support and resistance levels, validated by the Binary Arrow signal. Testing it on a demo account can help fine-tune entries and confirm effectiveness across different assets and conditions. 

Submit by Janus Trader 25/06/2015

Wait for the signal modied is an overbought, oversold trading system, based on the levels as support o resistance of the value chart indicator, my modified is add a filter that confirm the reversal.

I add this filter becouse this trading system in trending market has many false signals.

Time Frame 15 or 30min.

Metatrader Indicators:

Value chart deluxe

KDJ arrow,

ForexMTN (optional indicator).

Financial Markets: Forex, Commodities, Indicies.

Expiry time 3 candle. Expiry time 3-4 candles.

Rules for Wait for the signal

Buy

On the Value chart indicator the candle touches the level -8/-10. For entry wait the first buy arrow of the KDJ indicator.

Sell

On the Value chart indicator the candle touches at level +8/-+0. For entry wait the first buy arrow of the KDJ indicator.

Expected profitability ratio is 60-68.

You can use this trading system also for trading without binary options high/low.

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