Binomo Trader's Guide-EN

Binomo
Trader's Guide
Introduction
Hello, traders!
The Binomo team is happy to release a special

educational book for our traders. Here you can
find strategies, advice from our analysts, and
tips to expand your trading skills. Please enjoy
this book and use it to improve your trading
performance!
Trend trading and its advantages

Trading on a trend is the safest option on the market. After all, it is difficult to miss a
clear trend. However, despite the apparent simplicity, you need to know nuances to
get the most out of trend movement.
First, when is it the most suitable time to trade on the market? If the current trend
has been going on for over an hour, it will probably last for at least another 10
minutes, and you can take advantage of that by opening trades for 7-10 minutes.
Of course even if you think there is a clear trend on the market, you should use
trading instruments to confirm your forecast.
01
Candlesticks
What are Japanese candlesticks?
Japanese candlesticks are the most popular variation of price display on the chart.
They provide traders with extensive information about the price over a selected
period. Suppose you want to know what's happened to the price over the last 15
minutes. The candlestick will show you a list of characteristics: the maximum and
minimum price value for that period, the closing price, and the opening price.
02
Analyzing the market using candlesticks
Candlestick analysis includes plenty of different techniques. One of the most popular
is Price Action.
Price Action involves using special patterns that signal certain price behavior. There
are hundreds of such patterns but it is not necessary to study them all. You can limit
yourself to the most popular ones. For example, bullish and bearish engulfing.
Engulfing is a pair of candlesticks on the chart. The first candlestick continues the
previous trend and is the same color, while the second candlestick is the opposite
color. It will be the beginning of a new trend.
Bullish engulfing Bearish engulfing

The most important distinguishing However, it would be a mistake to be
feature of this pattern is that the body guided only by candlesticks and
of the second candlestick engulfs the candlestick patterns, especially when
body of the first. Hence, the name. The first starting out trading. Always use
presence or length of the shadows do additional indicators to refine your
not play a major role. forecasts.
03
Technical analysis. Indicators.
What indicators are there on the market?

There are different types of market indicators, and they are used in different ways to
analyze and predict price movement. There are two main groups of indicators: trend
indicators and oscillators.
Trend indicators are a mathematical average of the price. They can be used to
suggest future market trends. The main trend indicators are: Moving Average,
MACD, and Bollinger Bands.
The Moving Average is a line showing the average price for a certain period. With
its help, you can easily see the current trend.
The Moving Average (yellow line) shows an upward trend
04
The MACD reflects as a
histogram below the chart.
When it's bars are below the
zero line, the price falls.
When they are above the
zero line, the price rises.
The MACD bars go green as there is a boost in the market
Bollinger Bands consist of

three lines. The bands
reflect market volatility: the
more often the price
changes, the wider apart
they become. The flatter a
market is, the closer they
get to the central line.
Bollinger Bands get wider as a new trend begins
Oscillators are indicators which point out potential changes in trend. In addition,
oscillators usually let you know when the market is overbought or oversold, which
can indicate a trend reversal. Oscillators are usually located in a separate window
below the chart. There are plenty of oscillators, such as RSI or Stochastic.
05
An RSI oscillator shows
price action. When trading
on a trending market, you
usually set a value of 20 for
the oversold level and one
of 80 for the overbought
level. Usually, If the
indicator value crosses level
50, the trend changes.
Therefore, if you want to
ensure that the trend is
upward, but you have
doubts, wait until the RSI
crosses level 50 up.
RSI reached level 20 and bounced up from it
The opposite is when looking for a downward trend. Any doubts? Wait until the RSI
drops below level 50, and this moment will give you another argument that the trend
is downward.
Stochastic is another
example of oscillator.
Traders use it to generate
overbought and oversold
signals. Usually, readings
over 80 are considered
overbought, and readings
under 20 are considered
oversold. If the market is
oversold, we expect it to
rise in a short time.
If it is overbought, we
expect a drop soon.
Stochastic is deeply in the oversold zone and starts

changing trend’s direction
06
Trading strategies
In simple terms, a trading strategy is a set of tools and rules for

gaining profit from trading.
Trading strategies usually include the following:
Global analysis of the news that might influence the market;
Technical analysis using indicators and/or candlestick patterns;
Risk management: the limits for a trade amount and for losses.
07
Strategy #1
Tools:
Moving Average (type: exponential, period: 8). Yellow line.
Moving Average (type: exponential, period: 21). Red line.
Look at the pictures for a better understanding!
Trade UP when:
The price crosses Moving
Average 21 (red line)
upwards.
Moving Average 8 (yellow

line) crosses Moving Average
21 (red line)upwards.
The price is above the

Moving Average with a
period of 8 (yellow line).
Trade DOWN when:

The price crosses Moving
Average 21 (red line)
downwards.
Moving Average 8 (yellow

line) crosses Moving Average
21 (red line) downwards.
The price is below Moving

Average 8 (yellow line).
08
Strategy #2
Tools:
Moving Average: (type: exponential, period: 28)
ADX: Period: 5.
Trade UP when:
The ADX (colored green) is
moving above the red line.
The price crosses the EMA 28

and moves above it.
The body of the signal candle

shows an uptrend.
Trade DOWN when:

The red ADX line is moving
above the green line.
The price crosses the EMA 28

and continues going down.
The body of the signal candle

indicates a downtrend.
09
Strategy #3
Tools:
Alligator: default settings.
Awesome: default settings.

The entry signal will be the moment when the Alligator lines and the Awesome
Oscillator histogram move in the same direction.
Trade UP when an
upward movement begins:
The intertwined lines of the
Alligator move upwards and
diverge.
The histogram of the

Awesome Oscillator begins to
grow from the zero line area,
and the histogram bars are
green.
A signal to Trade DOWN

appears when a
downward movement
begins:
The intertwined lines of the
Alligator neaten and move
downwards.
The Awesome Oscillator

begins to decline from the
zero line, and the histogram
bars are red.
10
Risk management tips
You should think of your balance as a percentage.

Experienced traders don’t risk more than 10% of their balance: if you have $1,000 in
your account, your losses shouldn’t exceed $100. If you have $200, you shouldn’t
lose more than $20
The example: a trader who has $200 opens a trade for $10. That is only 5% of their
balance. But the trader who has $1,000 in their account does not look at any
percentages and makes a trade for, let's say, 50% of that amount: $500 in one go.
Which one of them is risking more? The answer is obvious.
From a trading point of view, a 5% or 10% loss is not that significant and cannot
harm your future trading opportunities. And that is the basis for choosing the
minimum deposit.
11

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Binomo

The Binomo team is happy to release a special

Trend trading and its advantages

What are Japanese candlesticks?

Bullish engulfing Bearish engulfing

What indicators are there on the market?

The Moving Average (yellow line) shows an upward trend

The MACD bars go green as there is a boost in the market

Bollinger Bands consist of

Bollinger Bands get wider as a new trend begins

RSI reached level 20 and bounced up from it

Stochastic is deeply in the oversold zone and starts

In simple terms, a trading strategy is a set of tools and rules for

Trading strategies usually include the following:

Global analysis of the news that might influence the market;

Technical analysis using indicators and/or candlestick patterns;

Moving Average (type: exponential, period: 21). Red line.

Look at the pictures for a better understanding!

Moving Average 8 (yellow

The price is above the

Trade DOWN when:

Moving Average 8 (yellow

The price is below Moving

The price crosses the EMA 28

The body of the signal candle

Trade DOWN when:

The price crosses the EMA 28

The body of the signal candle

Awesome: default settings.

The histogram of the

A signal to Trade DOWN

The Awesome Oscillator

You should think of your balance as a percentage.

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