THE REBOUND LINE STRATEGY
The IQ Option Strategy revisited and tested by FreeBinaryOptions.one
Screenshot Iq Option Strategy
Surely, brokers would dislike the fact that their traders could steadily earn any sort of profits. However, even a minority of their members should still be able to gain or even the “stingiest” of these brokers would be forced suspend.
For the health of any broker, it will always be in their interest to allow a percentage of such winners, as they carefully control a balance between those with revenue and those without.
Yes, so these winners exist, but how?
IQ Option is a broker that have come to the realization that for those who could use the most valid approaches will succeed, though very few have come to know of such secrets. And that secret has been carefully maintained.
However, one must wonder… are these systems the real deal, or just another chance for me to waste even more?
We consider these strategies suitable and satisfactory, they have sprung with the help of the most classic of techniques, and aided from all those who have been deeply involved in the experience through binary options.
A definition of a good strategy is to be clearly explained and well understandable, or risk leaving the trader in a myriad of doubts that would ruin their confidences to proceed. In such a case, a broker would provide the best impression possible, by providing strategic tips that would help maintain such confidences. Though many are still losing anyhow.
But for the broker, the mission would have been accomplished, they have robbed you blind and they are satisfied.
Advertising a broker that caters to those too ignorant to know anything about ‘binary options’ is no longer the profitable route to business. Most traders have been burned for far too long and as a consequence have become increasingly careful and alert. So it seems that we have become bombarded with ads and messages disguised as ‘insightful’ and ‘clever’, to hide the fact that they need our attention to extend the scam.
It is time to expose the reality that their arguments have failed to be shown in the necessary light and clarity. We will do our best to deliver such a promise and to provide our traders with the helpful guide they deserve. We see ourselves, then, to be a part of those who can succeed.
The solution lies in accepting the trading strategies of IQ Option, but better document to know them and apply them appropriately. This is a trading system that we have come to know well, being part of the FreeBinaryOptions.One site with whom we collaborate. Let’s see the strategies proposed and explained adequately, thus providing a “help” on our faulty broker tutor.
There are various techniques to each of which IQ has dedicated a promotional video.
This is not technically complex, and often the best results are obtained with the simplest strategies.
This strategy is the second of the series:
The Rebound Line Strategy
The Promotional Video
Here is a screen of the short promotional video that you’ve probably had the occasion to see, perhaps on YouTube or Facebook.
It presents one of the strategies presented by IQ Option, a fairly new introduced broker but competitive and fierce in the stage for binary options. Quickly earning eager recommendations from veteran traders and beginners.
The Trading System
The Rebound Line is a binary options strategy that aims to catch the movement of an asset at the moment when the price cannot break trough the support/resistance levels.
When the prices reaches the resistance line…
…and the first candle close below this level, the possibility of a rebound is greater than the possibility of growth.
That means it’s better to buy a PUT option
The Rebound Line Strategy is relevant for a neutral trend, just as for the upward and the downward trend.
just as for the upward…
and the downward trend.
When the prices reaches the support line…
…and the first candle closes above this level, the possibility of a rebound is greater than the possibility of a decrease.
It’s better to buy a CALL option.
This is what our hasty IQ Option is trying to tell us within a short few seconds of video.
Find Out More
Meanwhile the name, the Rebound Line Strategy.
It refers to an action of rebound caused by lines of resistance or support. But we must accept the fact that it will not always take such decisiveness, but sometimes the prices, which have been blocked, “break” these lines, continuing from the previous direction.
Meanwhile, we will be identifying the SR lines (Support and Resistance).
These lines are drawn manually by the trader on the graph of the broker or an external graphics, like Metatrader. SR lines are levels that prices cannot overcome, and even if they do, it would be with some difficulty.
Resistance is the upper line, Support is the bottom one.
Why does this happen?
The main reason lies in the psychology of the market.
For the support levels the number of purchasers generally becomes higher than that of the sellers, pushing the prices up, vice versa for levels of resistance.
Caution however, when a support level is broken, it automatically becomes a resistance level and vice versa. If we limit ourselves to where prices are rejected by the line, we will not exceed it.
SR lines are traced by observing the graph, and combining the maximum among them and the minimum among them, those that are presented as “peaks” of the market trend.
IQ Option has graphical tools, such as “”, which are helpful for tracking:
We identify a trend and decide to draw a joining for our support line, the maximum oscillations of the graph between them, as an example:
We note that at various points, the prices have actually rebounded, making it possible for an eventual entry in the PUT near the line.
These are called the Trendline, since they define a trend.
We mentioned that the prices can, however, exceed the level line, rendering our purchase into a negative result.
Let us further examine how to defend ourselves from such an accident, with a suitable instrument.
The RSI Indicator
Pooling the feedback of many fellow traders we have become convinced of creating an additional tool to deliver us the opportunity to avoid wrong inputs, the indicator RSI.
This indicator (RSI, Relative Strength Index) allows us to identify areas where the market is about to change direction. The RSI is available in the platform of Option IQ and its use is conceptually simple.
In the figure we note the RSI indicator, with a scale of values ranging from 0 to 100%.
It identifies three zones, one central, between 30% and 70% and other two zones, above 70 and below 30. These are areas of overbought or oversold.
The area above 70% is overbought and want to communicate that if prices are satisfactory in this area it will achieve an overrating and sooner or later they will fall in value.
The area less than 30% is oversold and want to communicate that if prices are found in this area will provide good feedback and eventually increase in value.
How to use the RSI
If prices are in the area of overselling, for example, less than 30, we may decide to buy a CALL option.
However, this decision will be taken only after the RSI graph reaches the 30 line, taking in the central area.
Conversely the case of a PUT, which will take place by observing the overbought zone, the prices will leave toward the central area.
Ultimately we’re deciding one entry only after receiving confirmation of the RSI. Then our operations will be performed:
1. Check Trend
2. Tracking Trendline
3. Observation of price foreseeing a possible rebound near the line
4. Check the exceeded RSI iperzone
5. Possible purchase option.
Feel free to use your preferred broker, whichever will allow adequate deadlines.
The strategy can be used for observing any type of graphic that provide accurate values of the market with minimum spreads.
The demo of choice however, is recommended to be IQ Option. One free demo, no expiration, immediately accessible without nagging requests or phone calls.
The strategy described here is not our interpretation of what is briefly mentioned by IQ Option, but a trading technique also described by other noteworthy sites.
Often clear and understandable, these are confirmed by researching through the web. If applied correctly it should provide interesting results.
Nobody forbids to combine the technical input to another indicator with which is more familiar.
Remember that any trading systems too complex, cluttered with too many indicators, will often result in disappointing outcomes.
Simplicity, money managing and tranquility rewards a trader. Fundamental rules that must be respected.
FreeOne Traders Team