Any of you who know me and my writing will know that one of my favorite things to do is surf the web looking for interesting binary options products, services, signals and strategies. More often than not what I find isn’t worth the electricity needed to power the servers much less your time or mine but sometimes what I find is a real gem. As much as I enjoy bashing a scam I also love to tout someone who I think is actually adding value to the binary options community.
It’s not always easy to find a new binary options website any more because I have been doing this so long. It can take some really creative searches to turn up something new and today I focused on reliable binary options strategies. Among the returns were articles posted on websites like the one you are reading now and others I write for. There were also some scammy websites I have seen in the past and a few not even worth taking the time cover. One that caught my eye for its name as much as anything else was UncleBear.com. UncleBear.com, as you may have guessed, is a website dedicated to bearish strategy.
What Is The UncleBear.com Strategy
To be clear, UncleBear.com is an affiliate marketing website but not one that I would call a scam. Yes, they would like you to sign up with their recommended broker but so would any other legitimate blogger. Like me and like BONET, they do not require any sign up, registrations, credit card or other info because they freely give their strategy for all to see. The strategy aims to detect points of market reversals and works just as well for bullish entries as it does for bearish ones. The trades are made using high/low or call/put type binary options whenever the asset’s price is at a level of support or resistance. These areas of support and resistance are predicted by the pivot point calculator and then confirmed by price action and more specifically candle stick patterns.
The strategy focuses on four types of basic candle patterns that can be found in both bullish and bearish formations. These are the Doji Stars, Haramis, Engulfing Patterns and Pin Bars. Pin Bars are actually a formation from standard o-h-l-c charts but resemble a type of doji sometimes called a shooting star or a hammer, depending on where it forms. Uncle Bear tries not to limit traders to his broker, 24Option, or to MT4 but he does suggest these as good choices. Any pivot point calculator plug-in for MT4 will work, or whichever pivot point indicator is available on the charts you use. Fibonacci Retracements and other types of support/resistance analysis can also be substituted if you prefer. When using the standard pivot point indicator available on most chart packages it will display 7 levels including 3 supports, 3 resistances and 1 central “pivot” level. These are now your target levels for potential entries.
The pivot point lines are used as targets in which to look for signals. Whenever asset prices approach one of the lines wait carefully for a signal which can be acted upon. Sometimes the signals will not be reversal signals, these must be ignored no matter what. Only the strong candle signals should be acted upon. This can be a little difficult to do at first, especially for a newbie, but with some practice can be accomplished. The trick is to wait for patterns to complete before entering a trade. Just because asset prices are at one of the lines, and making what looks like it might be signal, doesn’t mean it is one until it is complete. Once a signal is confirmed then trades can be entered upon a retest of support or resistance, as the case may be.
What To Watch Out For When Using The Uncle Bear Strategy
First off, this really isn’t a complete strategy but it is a good start. Uncle Bear obviously has some experience with trading and I think that’s what it takes to make this strategy work. The combination of pivot points and candlesticks works, I get it, it’s very similar to my use of Fibonacci’s. But like Fibonacci’s, Pivot Points are better viewed as areas where a signal might occur, not will occur. Using the PP’s is subjective work, just as subjective as the candles themselves. What for one person looks like an ominous dark cloud cover followed by three black crows is nothing more than a brief pull back to support for someone else. What I am saying is, it takes some experience to trade solely on candlesticks and mathematically derived and projected support and resistance lines. This is a good strategy and one that can be built on, just be careful when getting started and for sure use a demo account before real money!