How to Trade Natural Number Method in Binary Options

What are Natural Numbers?

Natural numbers are whole positive integer numbers.

But that is not how the author of the Natural Number Trading Method defines Natural numbers.

George Kleinman, the author of the Natural number Trading Method, defines Natural numbers as whole round numbers that are significant to market players.

What is the Natural Number Trading Method?

This is a trading technique initially designed for the commodities market.

However, traders have also extended it to other assets such as Forex. Round numbers are significant in all these markets.

Natural numbers significant to market players are marked outside the price chart on the right side.

To appreciate their extent on the price chart, you must apply the chart grid so that they are projected from outside into the price chart.

Some platforms have an option of adjusting the interval between the grid and natural numbers while others do not.

This Natural Number trading method does not use natural numbers in isolation.

Instead, they are used to know the levels at which to enter and exit the market.

So what is used as entry triggers in the Natural Number Trading Method then?

A 180-period Weighted Moving Average (WMA 180) and Price Action are the other components of the Natural Number Trading Method.

Those two are used to pick trade entries.

Are you a trader in Olymp Trade and are wondering how to trade this Natural Number trading method?

Well, in this post, I will reveal everything you need to know about how to use the Natural number trading method to win more in Olymp Trade.

Combining all the components of the Natural number trading method is easy and the components form a simple but profitable trading strategy.

Also Read: – HOW TO SET UP AND TRADE THE ELDER’S IMPULSE SYSTEM IN OLYMP TRADE.

Using the Natural Number Trading Method to Win More in Olymp Trade.

Thus far, you understand the basics of the Natural number trading method.

You know what other components are involved in the strategy besides Natural numbers. But still, you can’t make money with that information, or can you?

You still do not understand how WMA 180 and Price Action can be used to pick entries.

Further, you need to understand how Natural numbers can be used to define entry and exit levels.

This plus more is what this section is all about.

Here are the simple steps on how to use the Natural Number Trading Method to win more in Olymp Trade:

1. Apply the Chart Grid.

Natural numbers or round numbers significant to the market players are indicated outside the price chart on the right side.

If you need to have lines projecting from the outside numbers into the price chart to see price levels at the go without straining, you must apply the chart grid.

Just right-click anywhere on the price chart and choose ‘Grid’. Alternatively, use the shortcut key ‘Ctrl+G’ while on the price chart.

The chart grid will appear on the chart, showing lines extended from the numbers outside the chart on the right side across the whole chart.

That will make it easier to see at a glance, which level the price is, at any given time.

Having done that qualifies you to proceed to the next step.

2. Apply the Weighted Moving Average (WMA).

Other than Natural numbers, the other two components of the Natural number trading method are the 180-period Weighted Moving Average (WMA 180) and Price Action. 

Meaning, you will need to apply the Weighted Moving Average on your chart.

Click on the indicators’ tab and choose Moving Average from the list.

Adjust it to ‘Weighted’ and the period to 180, then apply it on your price chart.

You will be done adding the 180-period weighted moving average on the chart.

3. Look for Trading Signals.

Applying the chart grid and WMA 180 completed the setting up of your chart for the Natural number trading method.

Use a long timeframe such as the 30-minute chart or so.

Once the setting up of the chart is complete, what follows is the hunting for trading signals.

Here’s what to look for to profit from the market with this method.

• Bullish Trading Signal: A bullish bar closes above the 180-period weighted moving average and becomes the up trade setup bar.
• Bearish Trading Signal: A bearish bar closes below the 180-period weighted moving average and becomes the down trade setup bar.

Once you spot either a bullish or bearish signal, then proceed to the next step.

4. Wait for Setup Bar Breakout.

One of the things we didn’t mention about the Natural number trading method is that it is a breakout trading technique.

That’s because trading signal must be confirmed by the price breaking out of the setup bar in the anticipated direction of the trade.

This is how you expect a breakout depending on the type of trading signal identified in the previous step:

• Bullish Setup bar: The price must exceed the high of that bullish setup bar.
• Bearish Setup bar: The price must exceed the low of that bearish setup bar.

If such breakouts occur respectively, then the signal has just been confirmed. You can, therefore, proceed to set up your buy or sell trades.

Take note of the fact that breakouts that occur violently and with urgency are the best.

Entries preceded by weak breakouts may at times fail.

5. Set Up Buy Stop or Sell Stop Pending Order.

Did the price just break the bullish setup bar upwards?

Then set up a buy stop pending order at the closest natural number level above the current price level.

Did the price, on the other hand, just break the bearish bar downwards?

Set up a sell stop pending order at the closest natural number level below the current price level.

6. Adjust Stop Loss and Take Profit.

For the buy stop pending order, adjust the Stop Loss to the next lower natural number level from the entry-level.

However, for the sell stop pending order, adjust the Stop Loss to the next upper natural number level from the entry-level.

For Take Profit, this trading method uses the Trailing Stop Loss as follows:

• Buy position: Once the price moves above a round number level, shift the Stop Loss order to the round number level just below the broken round number level. Continue doing so as the position grows.
• Sell position: Once the price moves below a round number level, shift the Stop Loss order to the round number level just above the broken round number level. Continue doing so as the position grows.

Final Thoughts.

Do you agree with me that the Natural Number trading method is simple and easy to use?

Apply the Natural number trading method in your trading in Olymp Trade MT4 platform today and see the difference it makes in your account.

Happy Trading!