Pink Freud – The best 60 seconds Binary Options Strategy

The Ultimate PinkFreud 60 seconds Indicator Manual v1.2

The sessions panel

This panel is showing us which major sessions are active, what amount of time is left out of that session and, in the meantime, it works both as a volatility and avoidance filter for those hours that are not good to trade in.

The letter O (open) shows us how much time is left until the opening of the respective session.

The letter C (close) shows us how much time is left until the closing of the active session.

The red or yellow color shows us that we need to be cautious with our transactions because a session will immediately close or open, or it is not a very good time to place a trade.

The green color shows us the session we are in.

The remaining time until the closing of the current candle on the chart:

SAC = session average candle

Why is it important?

When we trade binary options we need candles with a medium to long length, in order to have a well-defined movement in one direction or the other.

In the following image you will see that on the Sidney and Tokyo sessions, the SAC is very small. This means that it is safe to stay away because there is no movement on the market.

SAC is preferably to be at least 20 points. Anything under this value is critical.

Low volatility reffers to candles of small sizes that represent a high trading risk!

Examples of graphics:

Often, after these low volatility candles, it will come a period when the price will make a very aggressive movement into one direction or another.

The periods of very low volatility can be either very easy recognizable with a naked eye or with the help of the standard Bollinger Bands indicator, when the lines of the indicator become very narrow. Example in the image below:

Fundamental filters that decide to enter or not in the transaction

Although Pinkfreud has a lot of filters, helpful in taking decisions, the most important ones are The Color Bar, Buy/Sell Reactions and ACS%.

If one of these filters doesn’t have the value to enter in the trade, whichever of the 3 above mentioned, then the trader HAS to abandon the trade.

In other words, (putting it another way), we must be aware of a fundamental aspect:

ONLY enter a trade when all the 3 fundamental filters have adequate values!

Let's take it step by step:

1. Color Bar

This is a volatility filter, wich is very important and very easy to interpret.

When the BUY or SELL signs appear, we must make sure the bar is NOT RED! You will only enter the trade when the bar is Green or Yellow. As simple as that!

In the above image at the same time with the appearance of both sound and visual alert (put) we can see the BAR is RED, so we don't enter until the BAR is yellow or green.

Like in the image below:

The yellow color allows us to enter the trade. Once this filter allows us to enter, we must analyze Buy Reaction and ACS%. These 3 filters work as a whole and all of them must be analyzed in order to have a VALID signal.

The most clear signals are when we have the GREEN color on all 3 filters, but these opportunities do not come around very often and this is why we also consider YELLOW to be a valid color.

Buy reaction/Sell reaction Filter

This filter represents the second fundamental filter of the Pink Freud indicator. It gives us the best trade entry point, and is of the crucial values for profitable trades.

Once the Color bar is Green we look at Buy/Sell Reaction which also has to be Green. Like said before, we can also enter on Yellow.

The present values of Buy/Sell Reaction in the indicator are as follows:

0 - 20% Green, 20% - 35% Yellow, + 35% Red

When we have a RED color on this filter we must avoid any transactions.

ACS%

Tha last but not the least third major filter, also very important in trading.

ACS comes from Average Candle Size and it is a filter that shows us the size in percentages of the active candle, compared to the previous candles.

While developing some analysis, I have noticed on the chart that the candles that give a trend reversal are clearly of a different shape, volatility and size while compared to normal candles. By comparing over 200.000 candles I reached the conclusions that allowed me to create some clear statistics for binary options.

Once we have green/yellow on the Bar, green/yellow on Buy/Sell reaction, we must look at the signal given by ACS%

If ACS% is Yellow or Green, we have a valid signal and we have to enter AS FAST AS POSSIBLE in the trade.

Statistical values for ACS%:

0 - 80% Red, 80% - 120% Yellow, 120 - 160 Green, 160 - 230 Yellow, +230% Red.

Remember !

ONLY TRADE when all 3 fundamental filters are Green or Yellow !

If any of them is RED, don`t trade !

Exceptions from this rule can be made after you have gained a lot of experience.

Auxiliary filters: <<Hight MTP>>

This filter is one that can keep us away from the moments when the market is very volatile and we can find ourselves in a trend on the 1 minute chart that can become very strong. High MTP= High Momentum Trend Power.

Many times the market is manipulated by the market makers (banks, liquidity providers, investment funds, etc).

During those moments of high risk, traders who throw themselves on the market lose the largest amounts of money. To avoid situations like these, I have conceived this filter that only appears when it detects moments like the ones described above.

It`s not a fundamental filter, so it`s importance is not crucial, but when we see it on the indicators panel we will have to be cautious and try to avoid as much as possible unpleasant situations. If you don't have a hard experience in using the indicator and you are just starting, it is recommended not to trade when you see this filter on the panel.

Clear situations when High MTP filter appear:

when we hava a very powerful trend with high continuation probabilities;

Beginning of a strong trend, and most probably we are seeing strong Bullish candles with large size and high trend continuation potential

As the name says, RSI is the classical MT4 indicator. This is one of the most used indicators, and it`s a filter we also use on our panel.

It`s importance is low in the case of our signals, but it's yet another confirmation when we want to enter a trade.

It`s value must NOT be RED when we enter a trade, otherwise we have to be cautious!

These situations are very rare, usually the RSI has normal values when the PUT or CALL signal appears.

Fractals Wiks

This is an auxiliary filter of low importance, but a filter that will help us raise our rate of productivity and better understand the market, once we become more experienced.

A brief explanation of this filter:

Along my experience I have noticed that the Fractals indicator is extraordinarily powerful in determining the support and resistance zones. In the places where we have a lot of Fractals zones there is for sure a support and resistance zone and implicitly a zone with trend reversal possibility.

Take a look at the images below for a better understanding:

Take a look at the images below for a better understanding:

Looking carefully you will see how wonderful and precise the fractal apparition areas determine the support and resistance areas of the price.

Putting it in a different way, in a certain value of the price on the graph, if we have a lot of “tails” or fractals, it means that is a very strong support/resistance zone. The more wiks or fractals we have, the stronger the area is.

Our filter shows us what happened on the graph in the past, how many tails and how many fractals there were for the current value of the price in the past.

If we have high fractals and wiks values for candlesticks it means that where the price is sitting now we had a strong trend reversal zone in the past; it alseo means that we are in a very strong zone of support/resistance and THEN the signal given by PinkFreud has a very high value !

You don't necessarily have to focus on this indicator but it is important to keep it in mind for the future development when you will become more advanced and able to interpret the market.

BM and SM

This filter is one of low to medium importance and it shows us if it is advisable or not to buy/sell in the moment of PinkFreud signal’s occurrence.

SM= Sell Momentum

BM= Buy Momentum

Whenever we have a BUY signal it is preferable to have a green BM, and when we have a SELL signal, it is preferable to have a green SM.

If BM or SM are RED it means we must be cautious in our trade.

Advice for the beginners: it is better to stay away when BM or SM are RED.

When you will be more experienced, you will learn to better interpret all the auxiliary signals and filters.

For now, just remember the essentials and take into account the Fundamental filters and LEARN what Pink Freud`s filters mean!

Volatility

As the name suggests, we are talking about a Volatility Filter. It`s importance is low, it shows us the volatility of the current candle compared with the volatility that took place for a certain number of candles that preceded the current one.

If the volatility shows up in yellow or green then the volatility conditions are good. If it shows up in red it means that the volatility is high and we need to be careful not to be in a news period or close to big news. Likewise, the volatility rises before the closing or opening of certain sessions!

Do NOT pay very much attention to this indicator for the moment, it is only important for you to know what it really is and what it means.

Other filters that are not on the chart: X sign on Chart

Other filters that are not on the chart: X sign on Chart

This is a filter of medium importance that shows up the moment when the indicators sees(are seeing) massive movements on the market and very high volatility! It`s an important filter and when you see it popping up, it will be better to avoid trading for 5 – 10 minutes.

As you can see in the graphic above, this filter can keep us away from some dangerous situations in which the market is manipulated by the Market Makers.

The Fibonacci zones and the Support and Ressistance zones:

You can see in the image above the horizontal dotted lines of different colors (yellow, green, red, etc)

Those lines represent support and resistance zones that Pinkfreud draws up and automatically and in real time updates.

Usefully our indicator is considered with no doubt the most powerful Binary Options indicator.

What is their importance ?

Both support and resistance zones have a major importance, and as you well know they represent the most powerful points of entry for a trade, whether we speak about Forex or Binary Options strategies.

The most powerful signals that PinkFreud gives are those that appear close to support or resistance zones.

At the same time, PinkFreud traces out automatically the Fibonaci level, another great advantage for a beneficial trader.

All the zones, whatever their color might be, have the same importance. If the signal given by PinkFreud appears close to these zones then we have one of the strongest signals given by PinkFreud, the ITM rate of these signals interpreted and used in correlation with the filters on the panel being over 80% ITM.