Full Review of the Two Armies Trading System for Binary Options
I always like strategies and systems with a good name. I also like them when they actually work or at least provide good information for traders. The Two Armies Forex Trading System is a good one and one that can be used by binary options traders as well. It is an in depth look at how to use support and resistance in binary trading.
What Is The Two Armies Trading System
I have always like a strategy with a good name. Too bad that most times when choosing a strategy by name alone all you get is that name. That is not the case with the Two Armies Trading System. This is a system that utilizes support and resistance (the Two Armies) to predict trades. This strategy can be found in the forums of BabyPips.com. It is intended for forex trading but is also very useful for binary traders as well. The strategy is one of the best presented I have seen in a quite a while and has more depth than most good strategies you can find on the internet.
Of course, you have to understand that this strategy is laid out in a most unconventional way. The author, Bambino358, uses a series of forum posts to deliver the message. First he (I assume) lays out the basics of the strategy. Several posts go on about buyers and sellers and how they make forex work. Then he describes how buyers and sellers are like armies with battle lines drawn on a chart. These battle lines are actually support and resistance lines. Resistance is where the bear army is advancing and support is where the bull army is advancing. Sometime the armies are fighting over the same line. The point of the strategy is to determine where the armies are and which one is stronger. When you know which one is stronger you can “enlist” in that army by placing a corresponding trade.
Why This Strategy Doesn’t Suck
The strategy doesn’t suck because it is based on good technical analysis, is well explained and it works. This strategy, although intended for forex most commonly traded pairs, will work for all types of binary assets. The author uses multiple time frame analysis in the strategy, like a lot of strategies, but actually goes in depth as to how to apply it, unlike most other strategies. The author even goes in depth as to how to apply trades using this strategy in different time frames. It is useful for trading very short time frames but even Bambino358 recognizes the futility of trying to predict market action below 15 minutes.
Why This Strategy Might Suck
This strategy might suck because it is very complex. It is so complex that it may represent many years of trading experience. For this reason it is not that great as a simple tool for binary traders. However, as a study on trading with technical analysis it is superb. I use support and resistance in my everyday trading and really enjoyed the article. The reason this system is so complex is because you need to be able to recognize a whole host of technical signals once prices reach a support or resistance line.
My Last Words On The Two Armies Trading System
I like this system, and not just because it has a catchy name. It is a good system focusing on price action and one that is well explained. However, it is fairly complex and may not be the best place for a newbie to start. The strategy relies on numerous other signals and an in depth knowledge of the markets. This is what I would definitely call a College Level strategy. After you have a grasp of basic charting, candlesticks, oscillators, trend and fundamental analysis AND can tie them all together you can begin to trade solely using support and resistance. Until then, I suggest you head back over to the Trade School and brush up on your trading skills.
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