60 Seconds Binary Options Strategy Explained.
One minute can be enough to make a profit if you use the time efficiently.
Tim Fries.
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University .
Reviewed by.
Shane Neagle.
Shane Neagle.
Meet Shane. Shane first starting working with The Tokenist in September of 2018 — and has happily stuck around ever since. Originally from Maine, .
Updated January 10, 2022.
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Don’t you hate waiting for news? ⏳
No one likes the unknown. Whether you’re waiting for a text after a great first date, or waiting for a new season of your favorite show after a major cliffhanger, being left in the dark is frustrating. You can end up playing out different scenarios in your mind, all while watching the clock to see if somehow it will reveal something.
In the stock and forex markets, this uncertainty isn’t just about your favorite character—it’s about what will happen to your hard-earned cash. If you’re not a fan of the long game, there are plenty of trading strategies that will get you in and out in less than a day—but the fastest of all of them are 60 seconds binary options.
If you want to know whether you’ve won or lost within just one minute, this strategy might be right for you. You can trade this way even if we go through the stock market decline strategists are warning about, or even as forex markets lag as central banks try to steady the market. In this guide, we’ll walk you through the basics of 60 seconds binary options, how to trade with them, and the advantages and disadvantages of using this strategy.
What you’ll learn.
60 Seconds Binary Options Trading Explained How to Trade 60 Seconds Binary Options Actionable Steps Advantages Drawbacks Trading Tips FAQs Get Started with a Broker.
Understanding 60 Seconds Binary Options Trading 📖
As you can guess from the title, we’re dealing with a specific type of binary options trading here. Binary options are kind of like placing bets: instead of investing in a company or a currency pair in the hopes it will pay off over time and then making a decision on when to sell, binary options allow you to simply bet on whether the security will go up and down in a certain time period. In 60 seconds binary options, that period is just one minute.
This of course has the potential to be extremely profitable—would you rather close 5-10 deals an hour (if you were using a 30-minute window), or 40+? But, if you don’t have a clear strategy, all those trades can easily go down the toilet. It’s always a good idea to practice these strategies on a demo account before switching to real money.
Beginning and seasoned traders alike can do well with this strategy. There’s always risk: you never know for certain how a trade will go, and a man in Florida was fined $2.5 million on a binary options fraud case, which is always something you want to avoid getting caught in.
So, make sure you get one of the top brokers for binary options so you’ll be well taken care of. Binary options traders need indicators with middle averages, and your software will provide what you need. Using proper technical analysis can increase your odds of success by at least 10%—so instead of the coin flip of 50%, you’ll have the opportunity to win 60% of your trades.
How to Trade 60 Seconds Binary Options 📚
Trading securities can be a complicated affair. Forex trading can require you to track complex geopolitics, such as China’s push to lift sanctions on Afghanistan—and even within markets themself there can be plenty of complications, like the recent Wall Street analyst charged with insider trading.
For this kind of trading, it’s important to use technical indicators for binary options to increase your chances of a profitable trade. Basically, you’re looking to predict how an option will change (up or down) over the course of a minute.
Levels of support and resistance, or the typical highs and lows of a security, can help you make better predictions. Since the price is generally trending toward one of these lines, you can use them to guess where the price will go next.
Support and resistance levels can give you a good idea of the range within which the price of an asset is likely to fluctuate. Image by TradingView.
In the beginning, most 60 seconds binary options traders will just use levels of support and resistance to make their predictions. As you gain more experience, you may want to use moving averages as well. These can help smooth out the small variations and allow you to see whether the price is trending upward or downward more easily.
Most traders compare the 10-day moving average (purple) to the 50-day average (orange) to see if a trend will deviate from its long-term average in the near future. Image by TradingView.
When the price is going between the lines of support and resistance, that is the best time to trade with this strategy. If the price breaks out of its support or resistance level, it’s best to wait until a new level is established before continuing to trade. Remember, you can practice trading with a demo account to see how you do before you put real money on the line.
60 Seconds Binary Options Strategy That Works ⚙️.
So you have the basic tools to start making bets through the 60 seconds binary options strategy—but if you want a little more structure than that, this step-by-step guide for one particular strategy will help you get started.
Step 1: Set Up Your Indicators 👉
There are tons of indicators in forex and stocks that will help you predict what’s coming next. We recommend setting up support and resistance and moving averages (as discussed above), as well as the Relative Strength Index (RSI).
The RSI gives you a number on a scale of 0-100, and indicates whether the market is overbought or oversold, which can predict a reversal in price. This strategy profits off market reversals, so the RSI is very helpful. When the RSI is between 0-30, the market is oversold; when it’s 70-100, that means it’s overbought.
The RSI shows how likely a trend is to reverse. Image by TradingView.
Many traders change their settings to a 3-period RSI for the one-minute window. This will make it more reactive to short-term price changes—which are what you’re betting on, after all. The RSI can also give more reliable signals for day trading if you set overbought to be 80-100 and oversold to be 0-20. This helps reduce the amount of notifications you’ll get, so you can focus on the better bets.
Step 2: Look For a 50 Candlestick Low ⏬
For 60 seconds binary options, you’ll want a one-minute chart using Japanese candlesticks. You want to find a price that’s at a low point over 50 candlesticks. Mark your start and end points for the 50-candlestick period, as shown below:
Using a minute candlestick chart to identify a 50-candle low can help you catch the next uptrend. Image by TradingView.
Step 3: Use the RSI 👈
Now that you’ve found your 50-candlestick low, you want to check the RSI to determine whether you have oversold conditions. With a low, you want to see an RSI reading between 0-20, which means that we are solidly oversold and likely to reverse soon.
Keep in mind that even if the RSI is as high as 30 can be a good indicator that the trend will reverse. Although, the lower it is, the better.
Step 4: Look For a Bullish Divergence ⚔️.
Now, a 50-candle low plus an RSI below 20 or even 30 is a pretty good start. But if you want to be really confident before you take your option, you can also check to see if there’s a divergence between the RSI and the price.
Basically, this means that the RSI would start to move higher, while the price continues to move lower. This means that a reversal in price is highly likely.
If the RSI is keeping steady or rising despite the price falling, it is called a bullish divergence. Image by TradingView.
Step 5: Find Your Entry Point 🚪
Okay, the stars are aligning—but we’re talking about very small windows of time here. So, when is the right moment to buy a call option?
Remember that 50 candle low you found at the beginning? Well, mark the high point of that with a horizontal line that extends across your graph. As soon as a candlestick crosses this line, that’s your moment to buy a 60-second call option.
Step 6: Profit! (Hopefully) 💰
Now you have the long, arduous one minute to wait to see whether your investment has paid off. If the price goes up after a minute—hooray! You made money! If the price goes down, then you’ve lost your investment.
Binary options can be quite profitable. Many brokers offer a payout of 85%, which means you get $85 of profit off a $100 investment (and so on through each order of magnitude). That’s a pretty solid return for just one minute of waiting.
Advantages of the 60 Seconds Strategy 👍
If you want to put in a high volume of trades, 60 seconds binary options are a great way to do that. You can put in trades on all kinds of short-term opportunities, and even have multiple trades going at the same time.
This strategy also allows you to profit off of strong market moves: if a price is going up up up, it’ll probably still be going up in one minute, and two minutes, and three minutes. You can ride this wave and watch for it to slow so you don’t start losing money when a major reversal occurs.
It’s also relatively simple—you really just need to be able to read an hour chart and a couple basic indicators like support and resistance and the RSI. These tools are available on many brokerage platforms.
High volume of trades Capitalize on market swings Straightforward trading Available on many platforms.
Drawbacks of the 60 Seconds Strategy 👎
While a high volume of trades gives you the opportunity to gain a lot of money, it of course also means you could lose a lot of money. It’s certainly possible to make too many trades without strategizing, or to get distracted by decent trading opportunities and miss the great opportunities.
Make sure to compare your payout to your win rate. Calculate how many of your trades you need to win in order to break even, and make sure that your payouts are big enough to make this worth your while.
High volume of trades means you might miss some of the good ones Potential to lose money Payouts may not always be high enough (calculate what you’re being offered)
Tips for Trading 60 Seconds Binary Options.
So, you’re almost ready to get out there and start trading 60 seconds binary options! We just have a few more parting words before you go.
Bet an appropriate amount. You don’t want any one trade to be more than 3% of your available funds. You also don’t want more than 10% of your trades to be wrapped up in trades at any one time—it can be easy to lose track of this with a high volume of trades. Be patient. Because these options are so short, it can be tempting to make an extremely high volume of trades every day. Make sure to stay focused on making good trades, not just any trades. Remember, binary options can be a lot like gambling—and gambling can become addictive. Don’t become Adam Sandler in Uncut Gems . Choose the right broker. There’s no two ways about it: you need one of the leading binary options brokers in the U.S. Get set up properly and make sure you have the tools you need to trade effectively.
Conclusion 🏁
The financial markets are not impervious to fads. Day traders have now flocked to NFTs since the waning of meme stocks. It’s fun to try new types of trading and go after the new hot commodity—but it’s also a good idea to have a few tried and true strategies in your back pocket, that can work in any market conditions.
Remember to keep a cool head, and check your indicators to make an informed guess about where the price will go next. Set that stop watch for one minute—and hopefully start making the quickest money you’ve ever made!