Options with such a short expiration time are accompanied by high risks. Nevertheless, if there is a high risk, there is usually a high profit too. Indeed, if you trade 60-second options, you get a huge number of opportunities on a daily basis. Signals come every few minutes.
Therefore, instead of opening transactions once a day, a trader can buy a huge amount of options. The number of mistakes usually increases along with the number of transactions. However, if the trader learns how to gain more than lose, he will be able to make good money as soon as possible.
60-Second Options Analysis Tools
You need a special approach to trade binary options with 60-second expiration. The market behaves quite unpredictably with such short intervals. In the absence of important news, it is best to rely on technical analysis. It gives a clearer idea of how the market will behave in the coming minutes.
Your strategy may be also based on candlestick analysis. For this purpose, you should set a 15+ second timeframe. Otherwise, you will fail to identify any particular sequence because the movements on the chart will seem chaotic.
It is also useful to analyze trends. Trend lines behave quite randomly with such extremely short intervals, but you still can catch the advantageous moments. You just need to be very careful and to act instantly.
You can also use technical indicators that will give the signals to purchase options. For example, use moving averages. Of course, it is best to combine different options, but time is limited, so it is often more efficient to rely on one method of analysis. For example, IQ Option allows you to display on chart such indicators as moving averages, Bollinger bands, alligator, relative strength index, trend lines, etc. You can activate the indicators even on the mobile version of the platform.
The Best Strategy for 60-Second Options
The most viable strategy for binary options with such expiration time is trading during breakthroughs. To do this, set various timeframes to identify current support and resistance levels and to capture breakthrough points.
You need to analyze charts once per hour or once per day. They will show you the values of the past breakthroughs. The more level acts as a strong resistance or support with the subsequent breakthrough, the more likely it is that its behavior persists. Therefore, you need to rely on these values.
After identifying a level, you need to set a shorter period on the chart and wait for the moment. You must wait for the time when the market will be ready to break through the level. Then you need to buy options.
With this strategy, the percentage of profitable transactions will be higher. However, you will have much less opportunities to buy options. However, this weakness can be compensated through trading different underlying assets. If you analyze multiple markets, you will have much more suitable points to start trading.