40# Binary Forex System for Spot Markets

Submit by Joy22 2024

Binary Forex System for Spot Markets is trend reversal strategy.

Best Time Frames

H1 (Hourly)
H4 (4 Hours)

Markets

Currency Pairs: Any
Commodities: Suitable for commodity markets as well.

Indicators Setup

I-Regression Deviations:
- Deviation: 2.0
- Period: 200
MVX Fibonacci Indicator:
- 220 bars with Zig Zag (12,5,3)
Volume Emphasized:
- Volume period: 10
Ergodic CCI:
- Default settings (momentum indicator)

Entry Rules

Buy (Long Position)

Price Action touches the lower red line of the I-Regression Deviations.
Wait for the Ergodic CCI to cross upward, confirming bullish momentum.
Enter a buy trade once the Ergodic CCI crosses upward.
Set a Stop Loss based on the nearest swing low or a fixed value (e.g., 20 pips).
Set a Take Profit with a 1:1.3 risk/reward ratio (e.g., 30 pips if Stop Loss is 20 pips).
Alternatively, use Fibonacci levels for setting Take Profit targets based on retracement or extension levels.

Sell (Short Position)

Price Action touches the upper red line of the I-Regression Deviations.
Wait for the Ergodic CCI to cross downward, confirming bearish momentum.
Enter a sell trade once the Ergodic CCI crosses downward.
Set a Stop Loss based on the nearest swing high or a fixed value (e.g., 20 pips).
Set a Take Profit with a 1:1.3 risk/reward ratio (e.g., 30 pips if Stop Loss is 20 pips).
Alternatively, use Fibonacci levels for setting Take Profit targets.

Risk Management for Forex

Keep a consistent risk per trade (1-2% of your account balance).
Always maintain the 1:1.3 risk/reward ratio to ensure profitable trades over time.
For H4 and Daily time frames, your win probability increases, making these ideal for higher confidence trades.

This strategy combines price action with momentum and trend-following indicators, offering a solid setup for both binary options and forex trading. Make sure to backtest this strategy thoroughly before live trading.