Short -timeframe trading strategies are very popular among binary options traders. In this review, we'll explore a method that executes trades so quickly that it's nicknamed "Thunder and Lightning." Just two instruments separate you from high-profit trades. Read our review to learn about these instruments, how to set them up, and how to use them correctly.
Content:
- Characteristics
- Installation
- Overview and settings
- Trading Rules for Thunder and Lightning
- Specifics of application
- Conclusion
Characteristics of the Thunder and Lightning Binary Options Strategy
- Terminal: TradingView
- Timeframe: M5
- Expiration: 1 candle
- Option Types: Call/Put
- Built-in indicators: True Strength Index, Vortex Indicator
- Trading instruments: currency pairs , commodities, cryptocurrencies , stocks
- Trading hours: 8:00 - 21:00 Moscow time
- Recommended brokers: Quotex , Pocket Option , Alpari , Binarium
Installing the Thunder and Lightning Binary Options Strategy Indicators
The Thunder and Lightning strategy indicators are installed on the TradingView platform via the menu of the same name at the top of the terminal. Click the "Indicators" button to open the "Indicators, Metrics, and Strategies" panel. In the search bar, enter the name "TSI." Then find it in the list and click on it, after checking the name "True Strength Index."
Then install the second indicator, Vortex Indicator, in the same manner. All settings can be left at their default values. After installing these technical analysis tools, your chart will look like the screenshot below.
Thunder and Lightning Binary Options Strategy Review and Settings
The "Thunder and Lightning" binary options strategy consists of two free indicators built into the TradingView analytical platform by default. The strategy's creators nicknamed them "Thunder and Lightning," likely due to the fact that the TSI and Vortex trading signals typically occur together: the Trend Strength Index signal appears first, followed by the Vortex oscillator.
Now let's look at each of them in more detail. The True Strength Index indicator is a tool for assessing the speed and dynamics of an asset's price change over a given period of time. It appears as an oscillator at the bottom of the trading terminal with two smooth curves reflecting price changes.
The formula of this indicator uses “double smoothing”, due to which the TSI indicator curves take into account only significant price fluctuations, filtering out market “noise”.
The Vortex oscillator, in turn, consists of ascending (VI+) and descending (VI-) trend lines. They are colored blue and orange, respectively. Typically, the "vortex" indicator is used to identify price trend reversals. This is precisely the role it plays in the "Thunder and Lightning" binary options strategy.
This tool has only one setting: the calculation period. We recommend leaving this value at its default value.
Trading Rules for Thunder and Lightning
The essence of trading using the "Thunder and Lightning" system is to open trades at a price reversal or a pullback in the direction of the main trend. The key factor to consider when choosing a trading direction is the relative position of the blue and red lines of the TSI indicator.
If the blue TSI line crosses the red line from below or is above it, we look exclusively for call options. In this case, the trigger for opening a trade will be the blue line of the Vortex oscillator crossing its orange curve from below.
To buy Put options, we wait for the opposite situation, in which the blue TSI line crosses the red line from top to bottom or is below it, and the blue Vortex line crosses the orange curve of this oscillator from top to bottom.
To better understand how trends work, we recommend reading a special selection of articles dedicated to this topic:
- How does a trend work in the markets?
- Identifying and using bullish and bearish trends.
- Market phase changes .
- How to identify a flat market?
Opening a Call Option
- The blue TSI line is above the red one – the trend is upward.
- The blue Vortex line crossed the orange line from bottom to top.
- At the opening of the next candle we buy Call.
Opening a Put Option
- The blue TSI line is below the red one – the trend is downward.
- The blue Vortex line crossed the orange line from top to bottom.
- At the opening of the next candle we buy Put.
We recommend setting an expiration time of 1 candle. Choose the position holding period based on the selected asset and historical data testing results.
Specifics of Using the Thunder and Lightning Binary Options Strategy
The "Thunder and Lightning" binary options strategy is suitable for trading on any timeframe and currency pair. If the system's trading signals are lagging, try adjusting the parameters individually for your timeframe and asset. The best results are achieved when signals from two indicators appear simultaneously. To increase your winning percentage, use technical analysis tools and candlestick pattern combinations.
Advantages of the Thunder and Lightning Strategy
The obvious advantage of this trading system is its clear trend-following signals without repainting . Thanks to them, traders will always open trades in the direction of the most likely price movement, increasing overall trading profitability. An additional benefit is the simple rules that even a beginner can master.
Disadvantages of the Thunder and Lightning Strategy
False signals may occur during periods of prolonged flat trading . To reduce the likelihood of this, we recommend using the "Thunder and Lightning" binary options trading system during active market hours , taking into account the volatility of currency pairs .
Conclusion
The "Thunder and Lightning" binary options strategy uses two oscillator-type indicators to generate trading signals, allowing you to filter out most losing trades. Its simple trading rules are sure to be appreciated by novice traders, and the ability to use short timeframes allows you to execute a sufficient number of trades to quickly gain experience and increase your profits.
Before using the "Thunder and Lightning" binary options strategy in practice, we recommend practicing on a demo account with a reliable broker . Open trades while adhering to risk and capital management rules. We wish you successful trading!
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