Momentum Scalping For Binaries- OTM & ATM


#1

What is Momentum Scalping?:


#2

Setting Up Momentum Scalping Chart :


#3

Momentum Scalping For Binaries :


#4

DM

On this strategy, does the 3 tick rule apply ONLY to the candle after the signal candle or can you take any candle that breaks the high/low by 3 ticks after the signal candle?


#5

On Momentum scalps - the Setup candle is the one that actual volume broke expectations. The entry is the very next bar (trigger bar) 3 ticks above/below the high/low of the setup candle if long/short on the candle/bar right after the setup candle only.


#6

Should we be concerned at all with time premium for selecting a binary contract, when these criteria for entering the trade are met?


#7

You need enough time for it to move. It will most likely be pure a pure premium trade as we usually use OTM or ATM/OTM on them. You will be looking at distance from where the market is from the strike.


#8

So the price movement would be predominantly driven by the time value erosion of the binary, similar to a premium collection trade?


#9

In the video you do say normal rules apply but if you are trading at night and using 3 or 4 tic bars or 4 min bars waiting for 3 tics is a whole bar or half a bar and would be entering halfway through a 6 tic or another whole bar on a 3 tic bar.

So question is no matter what size bar you use, you still wait for a break of 3 tics? It is probably a stupid question since you do state it above but nights are slow so just double checking.

Thanks, Scott


#10

Yes I still use 3 ticks as a breakout but I may have to go for more bars if using a smaller size bar. I don’t really use 3 or 4 tick bars though.


#11

On that trade you did that you made 1700 bucks. You said you put up 15 bucks. I am assuming you bought much more than 1 contract.


#12

Yes that was multiple contracts. When a binary expires it is worth max $100.00 So yes this was multiple contracts


#13

I’m somewhat confused about the notion of finding the contract using the scanner simulator before the event (3 ticks above/below high of previous setup bar) occurs. In the third video posted there are examples of large price movement in 2-3 ticks. When you look for the contracts before the buy/sell event right after the setup bar isn’t the price already too high/low for a considerable profit when you pull the trigger? I guess I just need some tips on timing and finding the right contract.