Sine Wave Tool: A Simple Pattern that is Amazingly Accurate

I tried the Sine wave tool on the trading platform, and developed the Double Sine wave which predicts the direction of the candles, usually flowing along one of the lines, or bridging between waves. The pattern is amazingly accurate at times, and shows the candles following the Double Sine wave pattern. This tool is exact because the candles follow either of the two waves, often with an asymmetrical pattern based on an added candle which creates a irregular wobble effect.

To try the Double Sine wave pattern yourself, you would place the beginning of the sine wave at the top of a row of candles under the fractal sign, or at the highest high of the sequence. Then place the second sine wave at the exact same place, while noticing the top of the descending candles where somewhere along the line it will fit into a top position just above the candles. You can estimate the position by the visual closeness of the wave form, and see that somewhere to the right there will be a meeting of the two waves which forms a symmetrical pattern.

The Double Sine wave pattern works well with the Fractal indicator and Heikin Ashi candles.

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Practice Trading on a Demo Account Before You Use Real Money

60 Second Options Trading Strategy

by David Detrich

I recommend that you find a Broker who offers a free Demo account so that you can test your strategy before you use it with real money. Once I found the Ayrex demo account I was happy because I can practice trading currencies until I have perfected my strategy. You never know how things work until you try the platform, place some practice trades, and see what happens. 

It took me four weeks to test my strategy which uses the Parabolic SAR indicator to simplify the up and down patterns. This indicator makes trading easy, yet there is still the problem of reversals. What if the direction suddenly reverses and you are planning your next trade? I found that following the direction of the dots works well unless you are approaching a fifth trade in which case you might want to keep your direction. Choosing the first dot in a reversal pattern works well, but is not successful every time. The second trade may work well with this strategy, so that using the Parabolic SAR has made trading fun while enhancing esthetic pleasure.

Noone wants to lose real money while trying a new platform, so I suggest using a Demo account to practice your strategy where you can trade all day without losing a single dollar. I recommend a four week training program for beginners where you can trade on a sophisticated platform to fine tune your strategy while gaining experience.

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60 Seconds Options Trading

60 Second Options Trading Strategy
by David Detrich

For those who are interested in 60 second options trading I have a few simple guidelines which will help you become a successful trader. First you can chose a Broker that appeals to you based on the look of the trading platform, and on what they offer. I recommend Binarymate because they have a professional look, and offer other features including Binary Option Robots which will be your eventual goal: to learn how to run the robot. First you should learn manual trading which involves the analysis of currency charts to determine whether you think the price will go up or down on a particular asset. I recommend using EUR/AUD for predictability because the other assets will vary throughout the day, while this asset remains steady. Another favorite is EUR/USD which is often recommended by professional traders, and there are times when it seems the wise choice. You can chose a favorite, and then stick with it for awhile as you wait for a big price movement where the candles will go up or down vertically. These are called breakouts, and are easier for a beginner to successfully trade.

Double Chart to Compare Lines and Candlesticks

Double Charts

Once you are on the Binarymate platform, or the broker of your choice, you will notice there are usually two charts, one above and one below. I recommend that you use the line chart for the top chart of the asset you chose, and the bottom chart for candlesticks. This way you can watch both charts to see if they correspond, so that the line chart will show the upward or downward momentum of the candlesticks below. On the left top of the chart you will see the line symbol where you can chose between line chart and candlesticks. You will notice the time symbol with a small clock where you should choose 1 minute. Each candlestick will represent 1 minute. If you are using the line chart on top you can set the time to 30 minutes or one hour depending on which you prefer.

Wide Chart from Trading View

Wide Charts 

I use yet another chart to go along with my trading, and I recommend the wide chart from Trading View at the top of this site, Parabolic Trends, that shows the many up and down movements, or gradual trend lines which curve across the chart. As a beginner it is easiest to try trading on the big price movements which are called Breakouts. These feature several green or red candles in a row which are easier to predict. Once you see the wide chart you can click the wavy line button at the top for Indicators, where you can chose Parabolic SAR, or the indicator of your choice. I recommend the Parabolic SAR which will produce dotted lines that indicate trend lines. At the top left of the chart there are the letters SAR which shows that the indicator is activated, and by clicking the center light gray circular form you can chose the Style of the dots. I like a caramel color for the small dots which help guide me in my decision making. I will discuss the Parabolic SAR in another blog post if you want more information on this indicator. If you encounter a reversal you can check your Parabolic SAR chart to see which way it is going, and you will notice that reversals usually work in a series of five candles. If you can count to five you will notice the reversal pattern may go up and down, so that by reversing your direction your chances of winning one of these five candles is pretty good verging on 100 percent.

Now you can win three out of four, or four out of five trades by using this large chart to give you a professional perspective on your trading. Set a modest goal as a beginner, so that by winning a few trades per day you are accomplishing your goal. Don't let yourself get fatigued by waiting for a good trading opportunity, or let frustration cause too quick an entry on trades. I relax while trading, and stick with EUR/AUD until it gradually develops an upward or downward trend. Prayer is a good approach to trading, particularly while you are watching the seconds pass by with the green color giving you faith in the system, and thoughts of prosperity will help bring you to your goal of financial success.

Computer Mouse

I recommend that you give up your finger motions on a track pad for a computer mouse which will improve your trading ability considerably. You can buy a mouse for a few dollars which will plug into the USB port on your laptop to give you much more control of the cursor while improving your response time for trading. I made the switch to a mouse myself, and I am happy I did with a much more professional feel while navigating the screen. Now it seems like a professional computer system handling with the ease and smoothness of control that will produce some good results.

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Parabolic SAR

60 Second Options Trading Strategy
by David Detrich 

Trading becomes fun when you discover the Parabolic SAR which not only looks good, but improves your accuracy when you are trying to interpret the candlestick patterns to predict the upward and downward movements in price. When I discovered this indicator I realized that I would be using the Parabolic SAR every day, and with a sense of self-confidence and esthetic appreciation, I named this blog Parabolic Trends after it. I recommend the Parabolic SAR for everyone interested in an easy, and esthetically pleasing, indicator which stands for Parabolic Stop and Reverse, a concept developed by J. Welles Wilder Jr., which uses a series of small dots to help you chose a direction when contemplating a trade. Although you might think it is obvious when you are choosing a direction, it helps to have the dots for a quick glance to see which way the trend is heading, and if a reversal looks imminent. 

Parabolic SAR Indicator

The true art of trading involves a careful analysis of the Parabolic SAR, especially when the trend line is approaching the dots which means that a reversal may occur in the next few candles. A wise trader will wait patiently for the reversal to begin a trade, so that the trend line is not reversing in the middle of a sequence of $5, $10, $30, $70, and $175 trades. I find that this strategy minimizes your risk of a lengthy sequence of trades, and will help you win quickly. It also takes some patience, but improves your odds when compared to a purely random approach.

I love the look of these dots which feature different colors that can be changed in the Style section of the indicator. At the top left of the chart you will see the SAR letters with a small circle form in the middle of three small light gray buttons. Choose the circular form in the middle where you can change the color to your favorite color of the day. I like a caramel look for the dots which represent upward and downward trends. With the Parabolic SAR you can follow the dots as they form, and even begin your trade at the moment the dot appears. This is what I call Precision trading, where the price action begins, and improves your odds of a precise outcome. At the last second things may go your way more often with the Parabolic SAR, although it does not win every time, yet from experience I find it my favorite from among the list of indicators.

Once you have mastered the Parabolic SAR you will have taken the fearfulness out of trading, and become more self-confident, knowing that you can handle anything that comes along in your chart patterns.

You can improve your understanding of the candlesticks by using an additional chart with a Parabolic SAR if your platform doesn't feature this indicator. I recommend using the Parabolic Trends charts at the top of this site along with your broker's platform because they are wider than most, and show the upward and downward trends in a dramatic style. 

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Martingale Trading

60 Second Options Trading Strategy
by David Detrich

The Martingale approach to 60 second options trading is the best strategy to recover your losses if you happen to lose a trade. Everyone loses a trade occasionally, and you shouldn't let this bother you. Even the professionals say that you can't win every trade, but you should try to recover your losses on the next trade. This is the secret to successful trading. All you have to do is increase the amount of your next trade from $5 to $10 to $30 to $70 to $175 until you have won a trade. This way you will recover the loss of your previous trade, and still make a profit. Even $5 is precious, and you can't let this money be lost without trying to recover it on the next trade.

Profits to be Made                       

Based on EUR/USD at 80%

1st Trade         $5         win   $9.00          Profit  $4.00  
2nd Trade       $10        win  $18.00         Profit  $3.00
3rd Trade        $30        win  $54.00         Profit $9.00
4th Trade        $70        win  $126.00       Profit $11.00
5th Trade        $175      win  $315.00       Profit $25.00

You can continue with a 6th trade for $400, a seventh trade for $900, and an eighth trade for $2000, yet this will only work if your balance is up to the $5000 plus level where the additional steps will make you more assured of winning each trade.

There is some simple math to calculate the Martingale approach. If you lose $5 and win on the next trade for $10, then you will make $18 which covers the $5 from the previous trade, and the $10 investment, and gives you a $3 profit. 

If you lose $5 and $10 and win on the next trade for $30, then you will win $54 which covers the $10 and the $5 from the previous trades, the $30 investment, and gives you a $9 profit.

If you lose $5 and $10 and $30 and win on the next trade for $70, then you will win $126 which covers the $5 and $10 and $30, the $70 investment, and gives you a $11 profit.

If you lose $5 and $10 and $30 and $70 and win on the next trade for $175, then you will win $315, which covers the $5 and $10 and $30 and $70, the $175 investment, and gives you a $25 profit.

These numbers are conservative in numerical value which is a way of playing it safe. You could increase the amount of your investments to suit the level of your skill while finding this is more of a risk.

5th Trade Calculations

Unfortunately the 5th trade does not always win, as it did in 2012 for those trading on Trade Rush. Now we see the super break out with 8 or more candles in a row which calls for a new strategy. I recommend taking these break outs seriously, and either reversing before you get to the 5th trade as a form of break out insurance, or creating your own strategy if you find yourself trading against the trend. If you are approaching the 3rd trade where things seem out of synch, either stop here or go to the 4th trade if you think it looks promising. It's better to take a small loss and continue from the Parabolic SAR indicator, then to lose too much.

60 Second Options trading is based on the Five Point Decimal system, yet for the Martingale strategy to work you need to check the Trader's Choice indicator at the top of the broker platform to see what percentage of traders are predicting the prices will go up or down. At 50/50% the strategy may not work very well, and I recommend you wait until you see a 55% or more to start trading with this approach. This will improve your odds of success, and the professionals recommend that you follow the direction of the Trader's Choice indicator in your trading on each trade.

There are factors which may disrupt the Five Point Decimal theory, and things have gradually changed since 2012 when the videos for this strategy were made. Now we see Tri Star formations of three dashes which may extend to five dashes creating an obstacle to the Five Point Decimal approach. Usually you can still win with these dashes, yet it creates a risk factor by extending the amount of trades you need to win.

I think the solution to this is to use candlesticks for your Five Point Decimal trading, so that you will be able to see if the chart has turned to a sequence of dashes. When these dashes occur, which indicate a lack of trading volume, or a time lag, take a half hour break until the chart returns to normal. I make a cup of coffee at this point, or plan my breakfast.

Also I might add that you can change the numbers on your Five Point Decimal strategy to suit your goals. The professionals will raise the amount of the investment to $200 or $500 on the fifth trade giving you more profit. They say most of the trades are won on the second and third trades, yet when you adjust these numbers you can design your own Five Point Decimal system to suit your needs.

I think that the Martingale strategy is wise, because you never want to accept a $5 loss. Your money is precious, and you should try to recover your losses on each trade. If you use this approach you should try to get beyond $1500 where you are out of the danger zone. Once past $1500 you will find yourself approaching $4000 which is your initial goal. Now you should feel successful as an options trader, and plan on buying a new car, a dream house, or travelling to your favorite vacation spot. 

If you become wealthy with this approach, consider giving money to your favorite charity, so that others will benefit from this knowledge. 

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