Chaos Forex System for Binary Trading (Total size: 4.1 MB Contains: 3 folders 13 files)
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Chaos Forex System is a Forex System for Binary Trading that aims to catch the first bar after a breakout. A breakout occurs when the price moves beyond a certain level of support or resistance, indicating a change in market direction. The strategy is based on Bill Williams’ Profitunity system, which uses indicators such as Alligator, Awesome Oscillator (AO), Fractals, and Market Facilitation Index (MFI) to measure price movement relative to volume.
The main rules of the Chaos Forex System are as follows:
Wait for a breakout of a fractal line (a line connecting two consecutive highs or lows) that indicates a new trend direction.
Use the Alligator indicator (a combination of three moving averages) to confirm the trend direction. The Alligator’s jaws (blue line) should be above its teeth (red line) and lips (green line) for an uptrend and below them for a downtrend.
Use the AO indicator (a histogram that shows the difference between two moving averages of different periods) to measure the trend’s momentum. The AO should be above zero for an uptrend and below zero for a downtrend.
Use the MFI indicator (a ratio of the bar’s range to its volume) to identify changes in market activity. The MFI should increase when there is more buying or selling pressure and decrease when there is less.
Enter a buy or call option when all of the above conditions are met and a green bar exists on both AO and MFI indicators. Enter a sell or put option when all the above conditions are met, and there is a red bar on both AO and MFI indicators.
Set the expiry time of the option to one candle or one minute.
Exit the trade when there is an opposite signal from any indicator.
The chaos forex system for binary is an example of how Bill Williams’ Profitunity system can be adapted for different types of trading. It is based on his philosophy of trading with chaos theory, which states that markets are nonlinear and unpredictable systems that can be understood by using fractals, self-similarity, and feedback loops. By using this strategy, traders can capture profitable opportunities in volatile markets.
The strategy can be applied to any time frame from 5 minutes to 4 hours, but it is recommended to use 15 minutes, 30 minutes, or 1 hour for binary options trading. The currency pairs that can be traded with this strategy are majors, indices, and commodities.
This Forex System for Binary Options is entirely manual. The indicators produce the signals, but any decisions to enter the market and set protection or profitable exit stops will depend on the trader. Therefore, the trader must be familiar with the principles of risk and reward.
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Chaos Forex System for Binary Trading (Total size: 4.1 MB Contains: 3 folders 13 files)
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