Options 1 Hour Strategy
There is a common wisdom that to make sure that your trades succeed you need a lot of time to analyze market conditions and allow it some time to move in the direction you predicted. This understanding cam from the stock market, where people hold on to assets for years, and then evolved in the Forex market, where to see profit, indeed, you had to hold your position for at least an hour. Building up on this I can assure you that making profit with options is plausible on a much tighter schedule. For traders with some prior experience in financial markets 1 hour options time-frame is the minimal suitable time-frame, as there is a need to adapt to more rapid trades and to develop their one hour options strategy. And for newbies, it will provide enough time to pour over the trade, to make more correct decisions and to develop options 1 hour strategy in the long run.
How to use 1 hour oprtions?
1 hour options trading represents an interval that is a perfect combination of speed and energy spent on a trade, not a whole day, but not 60 seconds, as well. And to start off you need to set up your chart at 1 hour options time-frame and choose a market that is overbought or oversold, according to the previously mentioned indicators. The main difference is that you have to look out for major news announcements and trade in the morning and evening (UK time) when the market has the most liquidity. When trading from 11am to around 3pm the primary market players usually take a break and the market price usually fluctuates for no apparent reason and goes sideways. And if there are some major news coming up in the nearest hour or so, the price can change sharply in any direction on expectations and market gossip.
One Hour Options
The options 1 hour strategy to use here is following the trend line, which is usually well-established on such a time scale. If the market price is going up, you should look for oversold levels and jump on the train. Your desired time-frame can vary from one to several hours, depending on the speed of market movement and proximity to major events. Anyways, you only need to have the price move a few pips in your direction, so there is no need to worry if it goes your way too much or too little, as long as the direction is right you are in the money. This is the major options 1 hour strategy and a positive factor when trading options.