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Moving Average Strategy

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Strategy characteristics

Type:Trend.
Timeframe:Any in the range M1-M15. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal an increasing.
Trading asset:Any currency pair. The main requirement is a fixed (2-3 points) spread and no hidden fees.
Trading time:All Forex trading sessions.
Percentage premium option:Not less than 70-75%.

Used indicators

The strategy uses three technical indicators:

  • Simple (SMA) Moving Averages. Trend indicators by which we determine the opening point of the option. The strategy is not intended for trading during flat periods. We trade only if the range is between at least 15-25 points!
  • Awesome Oscillator (AO). The oscillator should finally confirm the signals of the previous indicators. Additional signals can be obtained using intermediate levels − in this case, the Williams Magic Oscillator will also work as an indicator of overbought/oversold conditions.
  • Stochastic − the oscillator will assess the current balance between buyers and sellers: the predictor above level 80 − the end of the uptrend (overbought), below 20 − the end of the downward (oversold).

After installing the tools, the terminal’s working window looks like this:

Binary options signals:

  • CALL option. The price chart is above the Moving Average or breaks it from bottom-up. The Awesome Oscillator histogram is green, above or as close to zero as possible. Stochastic is up or out of oversold (level 20);
  • PUT option. Opposite conditions: the price is below Moving Average or breaks it from top to bottom. The Awesome Oscillator histogram is red, above or as close to zero as possible. Stochastic is down or out of overbought (level 80);

Open a trade on the next candle after trading binary signals. Time of expiration of options has to be not less than 10-15 minutes even if as a working timeframe it is chosen of minute.

Recommendations for use:

  • Novice traders should trade only binary signals at the zero crossings of the Awesome Oscillator. As you gain experience, you can use the histogram reversals up for CALL and down for PUT options;
  • Even on the minute timeframe, Stochastic rarely goes into the extreme zones and you can miss a lot of good deals. If price and Stochastic start moving in one direction − you can open an option!
  • Time of expiration can be increased up to 5-7 minutes if the steady trend is observed. Also during such periods, it is possible to open several options with different validity period to take away a maximum of the movement at minimal risk. If the broker gives the chance to close the option until expiration, then surely we fix the transaction (even if it in profit!) at the emergence of an opposite signal!
  • During the publication of important fundamental news and statistics, we do not open options 30 minutes before the news and 30 minutes after the publication; cautious traders can close current deals. To control the events, we use the economic calendar included in the all popular binary trading platform!

Stochastics

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Thinking how to make money on binary options, beginners want to cover everything: as many assets, strategies and signals as possible. Although professionals know that more “narrow” trade gives more profit. Let’s choose four European currency pairs and check the validity of this statement.

Strategy characteristics

Type:Trend.
Timeframe:Any in the range M1-M5. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal an increasing.
Trading asset:Any currency pair. The main requirement is a fixed (2-3 points) spread and no hidden fees.
Trading time:All Forex trading sessions.
Percentage premium option:Not less than 70-75%.

Used indicators

The strategy uses two indicators: Bollinger Bands (BB) − the horizontal direction of the BB lines confirms the presence of a flat, the breakdown of the lines will be thebinary signal of its end. If the range is wide enough, you can open options to roll back from the borders. This method is recommended only for experienced traders!

The «narrower» the Bollinger Bands price channel, the higher the likelihood of strong movement after flat completion. The opposite situation is necessary for trading on the edge of borders: the corridor must be at least 30-40 points, otherwise, the options will be unprofitable.

  • Stochastic − the oscillator will assess the current balance between buyers and sellers: the predictor above level 80 − the end of the uptrend (overbought), below 20 − the end of the downtrend (oversold).

After installing the tools, the terminal’s working window looks like this:

Binary options signals:

Once again, we remind you that options are opened when the current trend ends with a confirmed price reversal.

  • Rise (CALL) – option. The price pushes away from the lower border of the Bollinger or breaks its middle line from bottom to top.  Stochastic is above zero levels or in the overbought area.
  • FALL (PUT) – option. Opposite conditions – the price has not overcome the upper limit of the Bollinger or the price breaks the middle from top to bottom. Stochastic RSI also goes down to oversold.

Open a trade on the next candle after binary signals. Time of expiration of options has to be not less than 5-7 minutes even if as a working timeframe it is chosen of minute.

Recommendations for use:

  • Even on the minute timeframe, Stochastic rarely goes into the extreme zones and you can miss a lot of good deals. If price and Stochastic start moving in one direction − you can open an option!
  • Experienced traders on higher timeframes can open trades using only Stochastic to monitor the “market pulse”, but this approach is more suitable for the stock market, where the trends are calmer. But in a dynamic Forex market, there is always a risk of a rapid reversal of even a long-term trend, so take into account the data of other technical tools and live trading signals.
  • During the publication of important fundamental news and statistics, we do not open options 30 minutes before the news and 30 minutes after the publication; cautious traders can close current deals. To control the events, we use the economic calendar included in the all popular binary trading platform!

Intraday strategy «Europe» represents a rather reliable system of a conservative scalping for trade in the stable market. Parameters of trade tools can be changed according to the current volatility. Once again, we remind you that most profitable binary options signals will only be on trend areas, during the flat periods we remain out of the market!

Bollinger Bands and RSI

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Indicators and signals of binary options are very popular among novice traders in their deceptive simplicity: Traders think they do not need to study the market and the theory. They just open the position when they see an arrow up or down and think that is all they need. In most cases, this only leads to a quick loss of the deposit and all beginners should understand that they can’t trade without thinking, analyzing the market and understanding what is the forex market is. Only that trades who have a trading strategy can win on the binary options market.

Characteristics of the strategy

  • Type: scalping;
  • Charts period: 30 second – 60 seconds;
  • Currency pairs: any with high intraday volatility;
  • Trading period: the whole trading day Forex

How to trade

Adjust indicators in your trading system:

Bolinger Bands (BB)

Period = 40

Standard deviation = 2

Relative Strength Index (RSI)

  • Period = 6

Signal conditions:

  • CALL – when you see price goes up from lower BB line and RSI also goes up from level 20
  • PUT – when you see price goes down from higher BB line and RSI also goes down from level 80

The vfxalert signal of an Adaptive (M1 or M5) algorithm should be the same direction as a signal of the current strategy.

Expiration time

Not less than 3-5 candles of working chart period. If your chart period is 30 seconds that is mean expiration time should be 90-150 seconds.

How to open the position

You should open position when all conditions are met on the first new candle is opening! If you miss the moment of the first candle opening wait next signals.

Some bits of advice

  • The strategy works very well when the trend of M15 or M30 is Flat.
  • For turbo-options, it is highly not recommended to use Martingale or doubling the next transaction to compensate for the losses of the previous one. At small timeframes, mostly “market noise” is traded, trends last no more than 3-5 candles and it is better to wait for a strong signal on the strategy. You can vary the amount of the option depending on the strength of the signal;
  • The impact on the market of significant fundamental news and statistics can’t be predicted from technical strategies and it is better to refrain from trading during these periods, especially for beginners. Experienced traders can use strong signals from indicators before the news release as leading, but you can not rely entirely on them.

Relative Strength Index

The indicator RSI is an oscillator, and therefore it oscillates in a certain zone, limited by the maximum and minimum values. The index of Relative Strength is set on a scale from 0 to 100. It works best, reaching areas of extremes. The criterion for evaluation is two lines drawn at the level of 30 and 70. It is believed that the overbought zone is above 70, and below 30 is oversold. Therefore, when the value of the Relative Strength Index reaches and rises above 70, there is a threat of a drop in prices; movement below 30 is perceived as a warning of a near rise. Some analysts advise to accept 30 and 70 levels as boundaries only with side trends, and 20 and 80 with clearly expressed bullish and bearish.

Of course, exceeding levels 30 and 70 does not mean that you need to immediately begin making deals. After all, the market may be in a state of overbought and oversold for a long time, and the oscillator, warning about a change in the trend in advance, does not explain when exactly this can happen.

How to choose the optimal period? The fact is that for different timeframes of the same currency pair, it will be different, so it will not be possible to use once successfully selected indicator period on all time scales of the pair you need. As a rule, the smaller the timeframe, the longer the period should be and vice versa. It is not difficult to find the optimal period for the RSI indicator — you need to consistently look through the periods and look at the overbought and oversold zones. As soon as the main highlights (reversal, key) highs and lows on the price chart begin to be reflected by the indicator in the overbought and oversold zones, and the rest will be (at least most of them) outside these zones, consider that the optimal period is found.

Many traders do not like classical indicators and even indicators in principle. I believe that they simply do not know how to cook them.

Fractal Chaos Bands

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One tool cannot be a decisive factor in decision making. This is the main principle of technical analysis that all traders who think how to make money on binary option should observe. But, there are exceptions, such as Fractal Chaos Bands, which alone can find a deal that best matches the Dow Theory rule “price takes everything into account.”

Strategy characteristics

Type:Trend.
Timeframe:Any in the range M1-M5. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal an increasing.
Trading asset:Any currency pair. The main requirement is a fixed (2-3 points) spread and no hidden fees.
Trading time:All Forex trading sessions.
Percentage premium option:Not less than 70-75%.

Used indicators

The strategy uses one indicator:

  • Fractal Chaos Bands. One of the most profitable options is «price channel». The upper limit shows the maximum price of an asset for past periods, lower minimum. Their breakdown will be a confirmation of trend and you can open an option.

The indicator is not available on all binary options sites. If your broker does not have this indicator, you can download it for free on the Internet and use it in any other trading terminal (for example, MetaTrader) as a signal to open an option on your account.

After installing the tools, the terminal’s working window looks like this:

Binary options signals:

Once again, we remind you that options are opened when the current trend ends with a confirmed price reversal.

  • CALL option. The price is above the upper border of the channel or “enters” indicator from bottom up. The second option is only for professional traders!
  • PUT option. Opposite conditions – The price is below the lower border or moves inside the indicator from top to bottom.

Another condition is patience. You can try to enter the first candle of a different colour, but it is better to wait for the full binary signals. The expiration time of the options should be at least 5-7 minutes, even if a minute is selected as the working timeframe, as in our video.

Recommendations about use. 

  • Tools of the same group, in our case, trend instruments, even with different parameters, cannot be a decisive factor in opening a new position. It is recommended to receive additional confirmation from oscillators, for example, RSI, CCI, Stochastic, which correctly take into account the appearance of overbought/oversold situations and the dynamics of volatility.
  • You can significantly improve the result of scalping if you perform analysis on multiple timeframes simultaneously. For example, periods M5-M15 can give a hidden signal of a trend change, which is then confirmed by a deal on M1.
  • During the publication of important fundamental news and statistics, we do not open options 30 minutes before the news and 30 minutes after the publication; cautious traders can close current deals. To control the events, we use the economic calendar included in the all popular binary trading platform!
  • When trading intraday, we recommend performing a comprehensive analysis of the market − as a rule, there are many typical situations on different assets and timeframes, to which Fractal Chaos Bands react the same.

In conclusion, we remind you once again that with the basic parameters of Fractal Chaos Bands, depending on the characteristics of the asset, it can both give reliable signals and be very late even at intervals of H4-W1 (a week)

Strategy «Scientific»: 4 indicators

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When thinking about how to make money on binary options a trader should not believe in their simplicity. Large “CALL/PUT” buttons cause an immediate desire to click and quickly make a profit. The result is always the same – loss of deposit. Don’t forget, standard technical analysis tools can bring a lot of profit as in the «Scientific» strategy.

Strategy characteristics

Type:Trend.
Timeframe:Any in the range M1-M5. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal an increasing.
Trading asset:Any currency pair. The main requirement is a fixed (2-3 points) spread and no hidden fees.
Trading time:All Forex trading sessions.
Percentage premium option:Not less than 70-75%.

Used indicators

The strategy uses four standard indicators:

  • Hull Moving Averagе (HMA). Trend indicators by which we determine the opening point of the option. HMA more clearly defines a trend change, has less delay than simple (SMA) and exponential (EMA) Moving Average. The binary options strategy is not intended for trading during flat periods!
  • Commodity Channel Index (CCI). A technical indicator that shows how far the price has deviated from its average range over the specified number of periods. If the price deviated more than the range (+100/-100 levels), we expect a trend reversal. This will be the first confirmation of the Moving Average signal.
  • Average True Range (ATR). Shows the volatility of the current market and confirms the signal from CCI. If the volatility increases (the indicator goes up), there will be private trend corrections where you can open short-term binary options.
  • Awesome Oscillator (AO). The oscillator should finally confirm the binary option forex signals of Moving Average. Additional signals can be obtained using intermediate levels − in this case, the Williams Magic Oscillator will also work as an indicator of overbought/oversold conditions.

Binary options signals:

  • CALL option. The price above the Moving Average and the CCI and ATR oscillators are moving up. Awesome Oscillator histogram is green, above or as close to zero as possible.
  • PUT option. The price below the Moving Average and the CCI and ATR oscillators are moving down. Awesome Oscillator histogram of red colour, below or near the zero levels.

You can open options on the price rebound from the moving average and the vfxAlert signal. For newbie’s, this trade is not recommended, it is better to wait for confirmation from oscillator!

Open a trade on the next candle after trading binary signals. Time of expiration of options has to be not less than 5-7 minutes even if as a working timeframe it is chosen of minute, as in our video.

Recommendations for use:

  • The calculation HMA results exceed the average price values and are too close to the chart on small timeframes, which increases the number of free binary signals. Moving Average should not work like this even if everything is good on historical data – if there is too “close” interaction increase the number of periods;
  • The longer the sideways movement of the market continues, the higher the likelihood of a strong trend after its completion. In such cases, you can open trades at the first signs of a Moving Average reversal.
  • During the publication of important fundamental news and statistics, we do not open options 30 minutes before the news and 30 minutes after the publication; cautious traders can close current deals. To control the events, we use the economic calendar included in the all popular binary trading platform!

Automatic trading according to the «Scientific» strategy is possible: , but, like on any scalping system, it is better to trade manually using this scheme. This will allow you to more effectively tune the system to market changes, and the multicurrency properties of the strategy guarantee you a stable arrival every day

CCI 5 Minute Strategy

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The standard technical analysis tools present on all trading platforms are the most reliable way how to make money on binary option. The “Dynamic” strategy proves this using a trend indicator and an assessment of the dynamics of price movement.

Strategy characteristics

Type:Trend.
Timeframe:Any in the range M1-M15. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal an increasing.
Trading asset:Any currency pair. The main requirement is a fixed (2-3 points) spread and no hidden fees.
Trading time:All Forex trading sessions.
Percentage premium option:Not less than 70-75%.

Used indicators

The strategy uses two standard indicators:

  • Bollinger Bands (BB). The indicator reports the direction and volatility of the current trend, and the horizontal movement of the lines will show flat − in this case, it is better to stay out of the market, especially if the price moves in a narrow channel. When the range dramatically expands, you can use longer 10-15 minute binary options trading signals and increase the transaction volume by 10-15%.
  • Commodity Channel Index (CCI). Shows the dynamics of price movement or how fast the current trend is growing or ending. As you know, the price of all trading assets (currencies, stocks, futures, indices) moves cyclically between local maximum/minimum. In the strategy, “Dynamic” is used as a confirmation of trading binary signals from Bollinger Bands.

Binary options signals:

  • Rise (CALL) option. The price pushes away from the lower border of the Bollinger or breaks its middle line from bottom to top. Commodity Channel Index is above zero levels.

The CCI indicator signals that the asset is overbought (that is, it is worth waiting for a decline) if the line went above the level (+100), and oversold (waiting for growth) if the line is below the level (-100).

  • Fall (PUT) option. Reverse conditions: the price has not overcome the upper limit of the Bollinger or the price breaks the middle from top to bottom. CCI is below zero.

Open a trade on the next candle after trading binary signals. Time of expiration of options has to be not less than 10-15 minutes even if as a working timeframe it is chosen of minute, as in our video.

Recommendations for use:

  • The longer the sideways movement of the Bollinger Bands continues, the higher the probability of a strong trend after its completion. In such cases, you can open trades at the first sign of a CCI reversal
  • During the publication of important fundamental news and statistics, we do not open options 30 minutes before the news and 30 minutes after the publication; cautious traders can close current deals. To control the events, we use the economic calendar included in the all popular binary trading platform!
  • If there is a steady trend, you can open several options with different expiration dates to take the maximum movement with minimal risk. If the broker allows you to close the option before the expiration date, then we will definitely fix the transaction (even if it is in profit!) the appearance of the opposite signal!

Strategy “Calm River”

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We present the next simple exact binary options strategy on standard indicators of technical analysis. “Calm River” uses a classic combination, gives a stable profit on short-term options and is available even to beginners.

Strategy characteristics

Type:Trend.
Timeframe:Any in the range M1-M5. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal an increasing.
Trading asset:Any currency pair. The main requirement is a fixed (2-3 points) spread and no hidden fees.
Trading time:All Forex trading sessions.
Percentage premium option:Not less than 70-75%.

Used indicators

The strategy uses two technical indicators.

  • Two exponentials (EMA) moving averages with periods of 20 and 30. Trend indicators by which we determine the opening point of the option. The strategy is not intended for trading during flat periods. We trade only if the range is between at least 15-25 points!
  • MACD (12,26,9). This indicator works both as a trend and as an oscillator instrument, so it will be the final signal to open an option.

Binary options signals:

  • CALL option. The price breaks through from the bottom-up Moving Average. MACD histogram is above zero levels and is growing.
  • PUT option. Reverse conditions: break down from top-bottom Moving Average, histogram below zero level or falls.

The farther apart the Moving Average is at the moment of breakdown, the more reliable the signal is!

You can open options on the price rebound from the moving average. For newbie’s, this trade is not recommended, it is better to wait for confirmation from two indicators!

Open a trade on the next candle after binary signals. Time of expiration of options has to be not less than 5-7 minutes even if as a working timeframe it is chosen of minute.

As you can see, everything is quite simple, and you can quickly start trading, but you should consider several factors affecting the final result:

  • The longer the sideways movement in the market, the higher the probability of a strong trend after its completion. In such cases it is possible to open trades at the first signs of a Moving Average reversal
  • Even though you can trade throughout the day, the most profitable results were in the European (06:00 – 16:00 UTC) and the second half of the American session (from 16:00 UTC);
  • During the publication of important fundamental news and statistics, we do not open options 30 minutes before the news and 30 minutes after the publication; cautious traders can close current deals. To control the events, we use the economic calendar included in the all popular binary trading platform!
  • If the broker gives to close the option before the expiry, we do it (even if it is in profit!) when the opposite signal appears-repeated reverse crossing of the Moving Average with a rapid or relative change in the direction of the histogram MACD.

Intraday strategy «Calm River» represents a rather reliable system of a conservative scalping for trade in the stable market. Parameters of trade tools can be changed according to the current volatility. Once again, we remind you that most profitable binary options signals will only be on trend areas, during the flat periods we remain out of the market

Strategy «West»

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The binary trading platform offers a large selection of technical analysis indicators and beginners try to put them on the chart as much as possible. This does not improve the accuracy of binary options signals. Two or three tools are enough for stable profit as in the «West» strategy.

Strategy characteristics

Type:Trend.
Timeframe:Any in the range M1-M5. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal an increasing.
Trading asset:Any currency pair. The main requirement is a fixed (2-3 points) spread and no hidden fees.
Trading time:All Forex trading sessions.
Percentage premium option:Not less than 70-75%.

Used indicators

The strategy uses two technical indicators.

  • Simple (SMA) and exponential (EMA) moving averages. Trend indicators by which we determine the opening point of the option. The strategy is not intended for trading during flat periods. We trade only if the range is between at least 15-25 points!
  • Williams Percent Range (Williams %R). Moving Average must necessarily be confirmed by oscillator indicating an overbought condition when buyers can no longer move the price up, or oversold where there is almost no one in the market to sell at lower prices.

Binary options signals:

  • Rise (CALL) option. The price breaks SMA from the bottom-up, Williams %R comes out of the oversold area (level 80) or is directed upwards.
  • Fall (PUT) option. Reverse conditions: the price breaks SMA from the top-down, Williams %R comes out of the overbought area (level 20) or is directed down.

You can open options on the price rebound from the moving average. For newbie’s, this trade is not recommended, it is better to wait for confirmation from two indicators!

Open a trade on the next candle after binary signals. Time of expiration of options has to be not less than 5-7 minutes even if as a working timeframe it is chosen of minute.

Recommendations for use: 

  • If the broker gives the option to close the option before the expiry, we do it (even if it is in profit!) when the opposite signal appears-repeated reverse crossing of the moving average or Williams chart %R changes direction.
  • Even though you can trade throughout the day, the most profitable results were obtained in the second half of the US session (from 16:00 UTC) and the end of the Asian session (until 06:00 UTC).
  • During the publication of important fundamental news and statistics, we do not open options 30 minutes before the news and 30 minutes after the publication; cautious traders can close current deals. To control the events, we use the economic calendar included in the all popular binary trading platform!
  • You can significantly improve the result of scalping if you perform analysis on multiple timeframes simultaneously. For example, periods M5-M15 can give a hidden signal of a trend change, which is then confirmed by a deal on M1.

«SMA Breakout»: 5 minute strategy

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When thinking about how to make money on binary options a trader should not believe in their simplicity. Large “CALL/PUT” buttons cause an immediate desire to click and quickly make a profit. “Binary indicators” with colored arrows have the same goal without the possibility of customization. The result is always the same – loss of deposit. Don’t forget, standard technical analysis tools can bring a lot of profit as in the “SMA Breakout” strategy.

Strategy characteristics

Type:Trend.
Timeframe:Any in the range M1-M5. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal an increasing.
Trading asset:Any currency pair. The main requirement is a fixed (2-3 points) spread and no hidden fees.
Trading time:All Forex trading sessions.
Percentage premium option:Not less than 70-75%.

Used indicators

The strategy uses two standard indicators.

  • Simple Moving Average (SMA). Trend indicators by which we determine the opening point of the option. The strategy is not intended for trading during flat periods!
  • Awesome Oscillator (AO). The oscillator should finally confirm the binary option forex signals of Moving Average. Additional signals can be obtained using intermediate levels − in this case, the Williams Magic Oscillator will also work as an indicator of overbought/oversold conditions.

Binary options signals:

  • Rise (CALL) option. The price breaks SMA from the bottom-up. The Awesome Oscillator histogram is green, above or as close to zero as possible.
  • Fall (PUT) option. Reverse conditions: the price breaks SMA from the top-down. Awesome Oscillator histogram of red colour, below or near the zero levels.

You can open options on the price rebound from the moving average. For newbie’s, this trade is not recommended, it is better to wait for confirmation from two indicators!

Open a trade on the next candle after trading binary signals. Time of expiration of options has to be not less than 5-7 minutes even if as a working timeframe it is chosen of minute.

Recommendations for use:

  • Novice traders should trade only binary signals at the zero crossings of the Awesome Oscillator. As you gain experience, you can use the histogram reversals up for CALL and down for PUT options;
  • The longer the sideways movement of the market continues, the higher the likelihood of a strong trend after its completion. In such cases, you can open trades at the first signs of a Moving Average reversal and strong auto binary signals from vfxAlert;
  • During the publication of important fundamental news and statistics, we do not open options 30 minutes before the news and 30 minutes after the publication; cautious traders can close current deals. To control the events, we use the economic calendar included in the all popular binary trading platform!
  • Time of expiration can be increased up to 5-7 minutes if the steady trend is observed. Also during such periods, it is possible to open several options with different validity period to take away a maximum of the movement at minimal risk. If the broker gives the chance to close the option until expiration, then surely we fix the transaction (even if it in profit!) at the emergence of an opposite signal!

3 EMA + Stochastic: 5 minute strategy for binary options

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Thinking how to make money on binary options, beginners primarily look at short-term deals with the expiration of 1-3 minutes. Everyone wants to get a quick profit, but do not forget “free cheese only in a mousetrap”. It is much more profitable to be patient and work with longer options with an expiration of 5 minutes or more, as in the “3 EMA + Stochastic” strategy.

Strategy characteristics

Type:Trend.
Timeframe:Any in the range M1-M5. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal an increasing.
Trading asset:Any currency pair. The main requirement is a fixed (2-3 points) spread and no hidden fees.
Trading time:All Forex trading sessions.
Percentage premium option:Not less than 70-75%.

Used indicators

We follow the basic principle of technical analysis “trading binary signals confirmation should be carried out by indicators with different calculation algorithms.”  The strategy uses two indicators:

  • Three exponentials (EMA) moving averages with periods 14,50 and 30. Trend indicators by which we determine the opening point of the option. The strategy is not intended for trading during flat periods. We trade only if the range is between at least 15-25 points!
  • Stochastic − the oscillator will assess the current balance between buyers and sellers: the predictor above level 80 − the end of the uptrend (overbought), below 20 − the end of the downward (oversold).

Binary options signals:

  • CALL option. Parabolic SAR below the price, AO green and up. Stochastic is above zero levels or in the overbought area.
  • PUT option. Parabolic SAR is higher than the price, AO is red and down. Stochastic RSI also goes down to oversold.

Open a trade on the next candle after binary options trading signals. Time of expiration of options has to be not less than 5-7 minutes even if as a working timeframe it is chosen of minute.

Recommendations for use:

  • Even on the minute timeframe, Stochastic rarely goes into the extreme zones and you can miss a lot of good deals. If price and Stochastic start moving in one direction − you can open an option!
  • Experienced traders on higher timeframes can open trades using only Stochastic to monitor the “market pulse”, but this approach is more suitable for the stock market, where the trends are calmer. But in a dynamic Forex market, there is always a risk of a rapid reversal of even a long-term trend, so take into account the data of other technical tools and live trading signals;
  • During the publication of important fundamental news and statistics, we do not open options 30 minutes before the news and 30 minutes after the publication; cautious traders can close current deals. To control the events, we use the economic calendar included in the all popular binary trading platform!
  • Even though you can trade throughout the day, the most profitable results were obtained in the second half of the US session (from 16:00 UTC) and the end of the Asian session (until 06:00 UTC);
  • It is necessary to take into account not only the volatility of the trading instrument as a whole but also the average values for Forex trading sessions. For example, pairs with the Euro are the most dynamic in the European session, which means that the chart is the most informative. On the Asian side, volumes fall sharply and auto binary signals stop working.

Intraday strategy «3 EMA + Stochastic » represents a rather reliable system of a conservative scalping for trade in the stable market. Parameters of trade tools can be changed according to the current volatility. Once again, we remind you that most profitable binary options signals will only be on trend areas, during the flat periods we remain out of the market!