Signal From Expiration Rollover

S4 - Select - Underlying Markets nadex binaries
1

Darrell- can we make any inference from the change in the binary strike levels from one intraday expiration period to another?

I noticed on YM on 21 AUG, the following:

11-1 Expiration binary strike range: 15025 14865

12-2 Expiration binary strike range: 14978 14818

1-3 Expiration binary strike range: 15004 14844

If I am doing a Trend PC trade (1pm Expiration) and I am looking at a sell signal around 12-1215, should I have more confidence in the trade that the next block of trade strikes offered (12-1) have moved down 47 ticks? Conversely, should I be leery of a buy signal at the same time (12-1215, with a 1pm Expiration), when the next block of strikes have move down 47 ticks?

Thanks, Brad

2

No this would be a false assumption. Shortly before the binaries for that expiration begin trading the binary strikes are set - ie say 9 strikes on intraday 2 hour fx - they are set 1 ATM and 4 higher and 4 lower. It is completely automated and has absolutely nothing to do with market direction just where the market is at that point.