Reckless trading on the financial market is one of the easiest ways to lose money fast. Every trader needs to master at least one strategy to try to win in the market. We’ve listed some of the main, easiest and most assertive strategies for you to learn and start using.
The number of strategies that can be used on platforms like IQ Option is huge. It’s important to note that there isn’t one best strategy for IQ Option, but rather the ones that are best suited to certain situations or even fit the trader’s style and goals.
That’s why we’re going to highlight the strategies that are most popular with traders, but that doesn’t mean that others not mentioned here aren’t good. We therefore recommend that you continue to study and validate the strategies.
We can’t forget to mention that you can and should test a new strategy on the IQ Option demo account, which is included with the account and, with the exception of real money, works exactly the same as the regular account.
How to define the best IQ Option strategy for me
You should know that the time frame for binary options trades varies, with the shortest being 1 minute and then 5 and 15 minutes. This is perhaps the most important variable to consider when adopting a strategy.
For shorter trades, you can prioritize moments and strategies that take advantage of greater market volatility, and for longer trades, use those that take advantage of longer trends.
Below, we’ll explain some strategies that are very popular among traders in the financial market, which are also some of the best strategies for IQ Option.
Bollinger Bands
Bollinger Bands are not necessarily a strategy on IQ Option, but an important indicator that you can use for various strategies, as many use it as a basis. The function of this indicator is to show volatility, which is how much the price of a particular asset can fluctuate.
This indicator consists of two bands (curves), one higher and one lower. They represent a moving average of the closing price.
You can see the volatility in the distance between the two bands: if they are far apart, it indicates high volatility, which may indicate a higher risk to trade. When they are closer together, they indicate greater stability in the asset’s price, which for most traders is the best opportunity to apply various strategies on IQ Option.
Pullback
Pullback is one of the most popular IQ Option strategies among traders. It is the opposite movement of the market after a big price swing that is responsible for bringing it back to the natural trend.
So, to use the Pullback, you have to look for these big swings in the market and try to win while this price adjustment is taking place. Such swings may not be very easy to spot, but it plays in your favor that the Pullback often occurs after a big rise or fall.
Because the Pullback is an element of graphical analysis and is a common market correction, it can be used on practically any asset that has liquidity.
Watch out for reversal
A pullback is a corrective movement after a big swing, but you should bear in mind that not every big swing generates a pullback. When this happens, we call it a reversal.
When an asset fluctuates very sharply and for a long time, the trend is reversed. In this case, if there is an uptrend, it will become a downtrend, and vice versa. And, most importantly for us, without generating a Pullback.
To differentiate between pullbacks and reversals, you need to study support, resistance and price trends.
A pullback is the return of the price to the existing trend, and a reversal is the creation of a new trend, which should not respect the one that existed before.
Fibonacci
One of the most popular strategies among traders is undoubtedly Fibonacci. This is even a strategy on IQ Option that combines very well with Pullback and we recommend that you use them together.
But first it’s important to understand what Fibonacci is, how it works and how to use it. It is a graphical tool based on the Fibonacci sequence and ratio, which is present not only in mathematics, but also in various other elements of life, including shapes in nature.
The number in question is the ratio of 1.618 and the proportions distanced by it represent important reversal points in the price variations on the graph of the most varied financial assets. These are: 23.6%, 38.2%, 50%, 61.8% and 100%.
How and when to use Fibonacci
In order to use this IQ Option strategy, you must first master the concepts of support and resistance, as they are fundamental to making the markings to properly use this strategy on IQ Option.
You should apply Fibonacci when an asset breaks through an important support or resistance, this is indicative of a considerable price change, which this tool will help you predict.
You can apply Fibonacci on IQ Option from the following path: “Chart Tools” and then “Fibonacci Lines”.
You should identify the main support and resistance zones and draw Fibonacci from one extreme to the other, so that you have the main retracement zones available on the chart.
Follow the market’s progress and wait for reversals near the Fibonacci zones, they will provide good entry and profit opportunities.
Quick strategies: Scalping and momentum trading
Scalping is one of IQ Option‘s short-term strategies. It consists of several entries in a small amount and investment, which together can bring a good result.
To do this, you should use a shorter time frame and use candle-by-candle readings, rather than a longer analysis.
Momentum trading
Like scalping, momentum trading is one of the strategies on IQ Option for very short time frames. It consists of momentum analysis, as its name suggests.
The aim of this strategy is to take advantage of a strong movement in a particular asset, without the need to do more in-depth reading or apply tools and indicators.
Again, the recommended timeframe for using this strategy is 1 minute, because beyond that, your chances of winning in the trade become more random, and when trading in the market you should avoid this, as consistency is one of the keys to making money on a platform like IQ Option.
After reading this article, you can learn about other of the best strategies with a demo account on the IQ Option platform, and get to know the most interesting trading strategies.
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