Today we will “dust off” one old, classical strategy based on price action. We will also consider its advantages and disadvantages, and how it can be adapted to binary trading. The strategy is called very simple: “strategy 1-2-3” can be very profitable when properly used. When it was born marketing did not go hand in hand with trading: almost no one wanted to sell you a trading system, claiming that it contains a magic formula, helped a person to land on the moon, to make fire, and other nonsense.
Trading strategy 1 2 3 for binary options actually consists of a simple three-point chart scheme.
Just look at image 1 below (without looking at image 2) and you will perfectly understand what is meant (…have you also looked at the second picture Yes?).To buy the option “below” by 1-2-3 we need to make the T. 1 the highest swing in the chart pattern, for “above” we need it to be the lowest swing.
In fact, the strategy 1 2 3 is a reversal system. According to it ” below ” will appear after the upward trend or, at least, after the corresponding strong market movement. On the other hand, the “above” pattern will appear after a downtrend or at least after the market moves down. The purchase must be made after the support or resistance, formed by T. 2, will be broken. However, we will not get a valid pattern of 1-2-3 ” above” if “3” is below “1”. Every time when T1 exceeds T 3 in the opposite direction, we cannot use this trading technique.