Forex Binary Options Strategy with Pin Bar and Simple Moving Average Indicator

The Pin Bar indicator allows you to find reversal points in the direction of the prevailing trend.

It’s a reliable price action tool to trade binary options with relatively short expiry times.

This BO strategy is based on pin bars.

So it’s very important that you know how they look like (see illustration below).

I will show you how to trade the 5 min trading charts using pin bars with 15 min expiry time.

Binary Chart Setup

Indicators: Pin Bar for MT4 (optional), 200 simple moving average
Time Frame: 5 Min
Trading sessions: Euro, US
Assets: You can use this strategy on any pair (EUR/USD, GBP/USD, USD/JPY,…)
Expiry time: 15 min (3 bars)

Download

Download the Pin Bar Indicator for Metatrader 4.

Bullish and Bearish Pin Bar Candlestick Setup

EUR/USD 5 Min Chart Example

The above EUR/USD chart is a great example of a bearish pin bar forming during a down trend (price below 200 SMA).

According to the strategy rules: Buy PUT option at the open of the next candlestick with expiry 15 min.

As you can see the price remained below the entry price on expiry of the trade. ==>> Trade Won

Trading Rules

CALL Option (UP):

• Price must be above the 200 simple moving average (bullish trend)
• Bullish pin bar
• Buy Call Option
• Set expiration time: 15 Min

PUT Option (DOWN):

• Price must be below the 200 simple moving average (bearish trend)
• Bearish pin bar
• Buy Put Option
• Set expiration time: 15 Min