I just watched the video also.
I wouldn’t trade news with 20-minute binaries, either. However, I am going to direct you to a very basic article on strangles. Strangles are the opposite of butterflies in binaries and traded the same as straddles on spreads. My understanding is that they do need to be exceeding the expected volume. You can use a strangle on a binary for a news event in a similar way that you would use a straddle for a spread.
If you look at our news calendar, that is usually how it is recommended i.e., straddle/strangle. There are two that are recommended every week: the Oil Inventory report on Wednesday and the Natural Gas report on Thursday.
To try to answer your questions:
- The theory is that the current volume is either higher or lower than the historical volume. See expected volume indicator forum posts.
- Expected range is used in making trading decisions by giving you an upper and lower range for that 20-minute time period. For a strangle, the theory would be to buy a binary at the top of the range and sell a binary at the bottom of the range and as the volume pushed the market up or down, it would get closer or exceed the range and you would make more profit than what was risked on the trade. You are expecting to lose on one side, but the winning side will make enough profit to cover the losing side.
- We don’t usually use 20-minute binary options for news events as they need more time to make their moves. Hopefully, this doesn’t further confuse you!
