There where several confirmations:
1. Stochastic overbought on M1, M5 and M15.
2. Price was going towards Moving Averages on 4 different timeframes. (and a weekly resistance! Forgot to mention in the video though.)
3. Candles show a big drop with lots of volume.
4. S/R area.
How to select the best expiry using Metatrader 4. Selecting Expiries are difficult and depend on the timeframe and your technical analysis.
Moving averages are indicators that will help all traders understand and interpret trends, support and resistance, create channels, find breakouts and
crossover signals. There are 4 different moving averages in MetaTrader 4, SMA, SMMA, EMA and WMA. Find out which one is the best
moving average and how you can use them with your own strategy.
The higher period moving averages are the better choice for finding accurate support or resistance areas. These stronger, higher period MA’s are also good for breakouts and indicate the direction of the major trend. The lower period moving averages on the other hand, are better for the lower timeframes where you can spot the moving average crossovers and use them as entries for shorter expiries. Watch the video to find out about a strategy that utilizes 13 EMA’s set on different periods. It’s called the Guppy strategy or the Guppy system and it’s one of the best when it comes to using moving averages.
In this video you will learn how to draw trendlines and analyze flag patterns. Drawing trendlines will give you more accurate entries and enable you to ride the trend on any timeframe! Sometimes price creates higher highs but at the same time also lower highs and higher lows. This is when we can use flag pattern analysis using trendlines.
Selecting the right expiry is the hardest task in binary options trading. Once you know the direction of the asset, the deciding factor of whether you will win or lose the trade is the expiry. Select a too long or too short expiry and you might lose the trade. Analyzing the charts for short or long term expiry trading is also different. Long term traders tend to wait for candlesticks to close in their desired direction before entering trades but short term traders will have more leverage if they enter AT the touch on support or resistance lines. Moreover, a binary options expiry can be affected by factors such as news so it's important to know when to avoid entering trades.