In this post I’m going to show you a powerful high probability 5 minute FX Binary Options strategy with my favorite tool Linear Regression Channel and the Value Chart indicator. If you need more information of what they are exactly please use Google Search or Investopedia as I will not cover basics here.
This should work more or less on any charting platform but preferably use TradingView as this is my main charting tool and used in this example.
- First of all get rid of all your indicators on TradingView and insert the Linear Regression Channel in the indicators list. When you do so it will be a colored channel. You can either keep it as is or in my case I just like to have top & bottom lines displayed. You can do that by double clicking on the indicator/ settings and the in the ‘style’ section set all colors to completely transparent.
- This first LRC can be standard settings with a Count of 100. Then insert another one and change Count to 50 to get one for the immediate trend.
- Then insert Value Chart [TMC] with these settings below:
Now the timeframe for this strategy is 5 minutes, therefore set your chart timeframe to 5 minute candlesticks or bars.
- Use the LRC’s for reference when you see price touching or out of either bottom or top of the LRC’s as well as when you get red or green signals on the value chart as below.
- It’s important to wait until the 5 minute candle stick is completely finished before you enter either a 5 minute Call or Put. That’s why TradingView’s timer countdown is so great.
- Using the Linear Regression Channel is not always needed. You could just use the Value Chart or combined with Bollinger Bands. But I prefer the LRC as it can give a better context in price action and trends.
Now let’s see the results.
On each Value Chart signals we ended up ITM (In The Money) as you can see in the screenshot below. Ideally we always get a 100% win rate but unfortunately it’s not always the case. There will be bad signals too but if winners outweigh losers and you can be profitable that’s all that matters.