Trend and reversal

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-the loss of the Deposit. Don’t forget that standard technical analysis tools can bring a stable price. Profit both in the trend and on the reversal, as in the “Trend and reverse” 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.

  • Gator Oscillator. Created by Bill Williams as a variant of the Alligator indicator. Red above and below the zero levels confirms downtrend, green uptrend. A colour change is a correction or quick rollback that must be confirmed by live trading binary signals.

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. The indicator is not used in trading as an independent tool. It is only used in conjunction with other technical analysis tools.

  • Triangular Moving Average (TMA). The indicator resembles Bollinger Bands, but it is built based on not just moving averages, but two times ironed moving averages. This makes the indicator less sensitive and you can more accurately see the direction and changes in the medium-term trend.

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

Binary options signals: 

  • RISE (CALL) option. The price is above the Moving Average, Gator Oscillator is green and above the zero levels.
  • FALL (PUT) option. Opposite conditions – chart below Moving Average, red Gator Oscillator.

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 in our video.

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:

  • The calculation TMA 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.
  • 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.

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