Renko Scalp Forex Binary Options Trading Strategy For MT4.
Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.
The Renko Scalp Forex Binary Options Trading Strategy For MT4 uses Renko candles and several indicators to calculate the entry signals. It is specially designed to trade 1 minute and 5 minutes binary options.
This strategy uses 3 Renko indicators to help you detect strong momentum moves. A band indicator, as well as an RSI alert indicator, will help you to find extreme overbought and oversold situations. But you should be extremely careful while taking the readings from the indicator since our preferred time frame will be a 1 and 5-minute chart. Now let’s see the prime indicators used in this system.
List of indicators used in this system.
Chart setup with the Renko Scalp Forex Binary Options Trading Strategy For MT4.
Functions of the prime indicator.
To use the Renko Scalp Forex Binary Options Trading Strategy For MT4 efficiently, you should learn to know the proper use of the important indicators used in this system. Unless you dig deep, you might become confused while taking the trades in the lower time frame.
The bands work more like the Bollinger band indicator. In the main chart, the lower part of the band will act as the support level and the upper band will act as the major resistance. Professional traders usually look for the price action confirmation signals to take the trades. But if you intend to rely on price action signal, you should use the Renko Scalp Forex Binary Options Trading Strategy For MT4 to trade the 1 minute time frame.
Renko Scalp SMF.
The Renko Scalp SMF works like the prime indicator for this system. As the price test the major resistance, the bears become stronger. The Renko Scalp SMF indicator prints a green circle above the candle which acts as the bearish signal.
Analyzing the Renko Scalp SMF dots.
On the contrary, when the price tests the lower bands and bounces off, the Renko Scalp SMF prints a red color circle which confirms the bears are exhausted. In such a case, the price usually rallies towards the upper bands which act as the dynamic resistance.
Parabolic SAR mtf.
The Parabolic SAR mtf is the advanced version of the parabolic SAR indicator. The bullish reversal is confirmed when we spot a big aqua color dot below the candle. After the big aqua dot, you should spot successive small aqua dots below the candle.
Analyzing the position of the Parabolic SAR mtf dots.
On the contrary, the bearish reversal is confirmed by the purple color dot. Note that the valid big dots should be formed near the upper and lower bands only. So, pay attention to the position of the dots as it plays an important role.
MBFX timing and RSI filter indicator.
The MBFX Timing indicator is a bit tricky to use in the higher time frame. Since we will be using the Renko Scalp Forex Binary Options Trading Strategy For MT4 to trade the lower time frame data, we should consider the slope of the signal line.
A positive slope in the MBFX signal line suggests bullish momentum and a negative slope indicates that we need to look for the short trade setup. Analyze the signal line position in the RSI filter window as it will give you a better idea about the overbought and oversold state of an asset.
Impuls and Horizontal scales.
The Impuls creates a simple colored bar that tells us about the strength of the buyers and sellers. The red bar stands for bearish momentum and the blue bar suggests a strong bullish rally. On the contrary, the grey bar indicates the price is confined to a specific range.
While taking the data reading from the impuls indicator, pay attention to the horizontal scales data as it will help you trade during the active trading sessions. Try not to trade the asset during the inactive trading session as the market volatility is extremely low which makes things harder for the retail traders.
The call option setup sequence.
Options trading is always a bit different than the regular currency trading profession since you have to very cautious about your trade timing. A slight delay in the trade execution process might cause you big trouble even though you might be using the Renko Scalp Forex Binary Options Trading Strategy For MT4. Now let’s check the prime conditions to execute the call option.
Conditions to execute the call option.
Select the major currency pairs which have a spread of fewer than 2 pips. Avoid taking trades in the cross pairs as the preferred analytical time frame is a 1 and 5-minute chart. The slope in the white color band should be positive and the price should be close trading close to the lower band. Wait for a test of the lower white band. If the lower band manages to limit the bearish correction in price, you should have a candle with higher closing than its opening price. At the Renko Scalp MS alert bar, you should spot blue square bars which is the indication that the bulls are taking control over the market. The signal line in the MBFX timing indicator should have a positive slope and it should be colored in blue. At the impuls indicator, you should see the blue bars which is the final confirmation for the long trade. After checking all these parameters, you may take the call option with low-risk exposure.
Execution of the call option.
Trade management technique.
Managing the trades while using the Renko Scalp Forex Binary Options Trading Strategy For MT4 is a simple process. You should ensure that the amount of money that you are risking is not exceeding 2% of your account balance. And the potential reward factor must be higher than your risk amount.
The put option setup sequence.
The put option setup sequence is very similar to the call option setup sequence. But in this portion, we will learn some advanced techniques since we will be taking the trades in the 1-minute time frame only. Let’s check the prime conditions to take the long trade.
Conditions to execute the put option.
Since you will be taking the trades in the 1-minute time frame, you must trade only in the major currency pairs. As the trend trading method significantly lowers down the risk factor, it is better to pick an asset that has a downward slopping white band. Wait for the price to retrace back towards the upper portion of the channel. As the price hits the upper white band, it should form a nice bearish candlestick pattern. The Renko Scalp SMF indicator should print a green circle above the candlestick, which is a strong indication that the price is going to fall. A purple color parabolic SAR dot should be also present above the candlestick which validates the end of bullish correction. At the Renko scalp MS alert indicator panel, you should see a consecutive red square which confirms the establishment of bearish momentum. The signal line in the MBFX timing indicator should have a negative slope. Note that the signal line should be red and it must be trading near the top portion of the indicator panel. Finally, check for the red bars at the impuls indicator. You may take the put option after the formation of two red bars in the impuls indicator.
Execution of the put option.
As the trades are taken in the 1-minute time frame, the expiry period for the trades should not exceed 10 minutes. Moreover, the risk factor for each trade should be 1% or lower. Regarding the payout, it should be higher than your stake, or else you are going to have a tough time while using the Renko Scalp Forex Binary Options Trading Strategy For MT4.
Renko Scalp Forex Binary Options Trading Strategy For MT4 – Useful advice.
We have already pointed out that binary options trading is a bit harder than traditional currency trading. So, while using the Renko Scalp Forex Binary Options Trading Strategy For MT4, we should follow the exact steps mentioned in this article. If necessary, you may move back to the paper trading account and learn the proper use of this system.
Renko Scalp Forex Binary Options Trading Strategy For MT4 – Conclusion.
Mastering a new trading method like the Renko Scalp Forex Binary Options Trading Strategy For MT4 is always a challenging task. This strategy is often considered an advanced system as the investors have to deal with a 1-minute time frame. So, you should test the functions of this system in the practice trading account before you use it to trade in the real trading account.
Download the complete system description and the files here:
Renko Scalp Forex Binary Options Trading Strategy For MT4.