Navigator is a binary option strategy based on reversal of a current trend.
First and foremost, the strategy implies that there are no infinite movements in one direction. This is why a price correction is inevitable.
A level of correction may vary and result in a new trend. Consequently, an investor has to pinpoint the time of reversal.
An investor needs to have in mind that price can reverse at any point of time. The Navigator binary option strategy is designed to figure out the time when the price movement is exhausted. Trend oscillators are used for that:
RSI (Relative Strength Index)
CCI (Commodity Channel Index)
These indicators complement each other perfectly well. And the only thing which needs to be changed in the settings is CCI, that is, to extend a lower and an upper band up to +200/-200:
The key point distinguishing this binary option strategy from others is that it can be used on short-term time frames. This doesn’t mean that the strategy can be used on a 1-minute time frame, but on a 5-minute time frame it works well.
As I said before, the strategy lies in pinpointing the moment of an exhaust of a current market trend. Base on this, a trader has to figure out an overbought or oversold zone which depends on a trend. These zones are the bands of the price movement.
Overbought in case of RSI means upper values of 70 to 100 and in case of CCI from 200
Oversold in case of RSI means lower values of 0 to 30 and in case of CCI up to (-200)
If the indicators reach an oversold zone (typically, in case of a bearish market), a trader has to buy a CALL binary option, and vice versa, if the indicators are in an overbought area (in case of a bullish market), a trader should buy a PUT option and expect a reversal.
Time of expiration is calculated based on the 5-level rule which means that time frame is multiplied by five. For instance, expiration at a 5-minute time-frame is equal to 25 minutes. If you use a 30-minute time frame, expiration amounts to 150 minutes.
Many traders make one common mistake. The mistake lies in buying when the price has not reached its bounds. To avoid the mistake, a trader has to wait until both indicators reach their highs or lows.
If indicators reach an overbought zone, this means that a trader has to buy a binary option and expect the price to fall.
Based on the above said, Navigator is a system allowing a trader to invest successfully in binary options.