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3 moving averages’ strategy for binary options

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3 moving averages’ strategy for binary options

BOS 8 November 2013 Binary options strategies Comments Off on 3 moving averages’ strategy for binary options 3,298 Views

As an evolution of the displaced moving average I developed another strategy that, in my opinion, is much more effective, even if with a lightly more complex structure, but always very simple to implement. Let’s see what is it.

1. Set the asset’s graph with 1 minute time-frame

2. Add the simple moving average with period 20 (green)

3. Add the displaced moving average 5, -2 (blue)

4. Add the displaced moving average 10, -5 (light-blue)

1. Wait until the blue moving average intersects the green one

2. The light-blue moving average must get closer to the blue one, almost as if it crosses the green one in the same point as does the blue. The important is that in the previous moments a certain distance between the blue and light-blue averages has created. Practically we exclude the cases in which the blue moving average and the light-blue one are superposed.

3.Only if the 2 above described points happened, you can invest as follows:

A. High 2 minutes – if the blue moving average intersects the green one from the bottom to the top. Entrance immediately after the closure of the candlestick which participated in the intersection.

B. Low 2 minutes – if the blue moving average intersects the green one from the top to the bottom. Entrance immediately after the closure of the candlestick which participated in the intersection.

3 moving averages’ strategy for binary options

In this image I underlined the ideal conditions to enter, starting with a downturn investment and then with an upward one according to this strategy. As you can see, I included two ovals, which point out what I explained in the previous operational point (n. 2), in which is evident that the bleu moving average and the light-blue one move away one from the other and then converge towards the green average. The cases in which these two averages were superposed repeatedly gave me doubtful results, so it’s preferable not to invest.

The following one is a typical trend that often occurs and triggers a good series of profitable investments following this strategy.

So, it’s important to know well most of the strategies, in order to be able to apply the most suitable one at the right moment.

Don’t forget that moving averages are dynamic and so can give false signals, that is you can witness in real time a crossing that could disappear in the following candlesticks. Generally it tends to remain, but there are some cases in which the crossing you were looking for disappears just after the investment.

I recommend you, obviously, to use the brokers allowing investments expiring in 120 seconds, that is 2 minutes: 24option. optionbit

If you are interested, this is my workstation on Netdania. By setting it in this way I can immediately display the assets that are going to satisfy the features I was looking for and which give operational signals. With a simple double-click on a graph, suitably set as above described, I can immediately obtain the enlargement of the area and see if I can apply this strategy. For each strategy I save the most suitable setting, so that I can be immediately operating.

Also this strategy, like all other ones, is very risky. Before applying you should always try it on a demo account and before investing you should verify that in the previous moments the results have been positive.

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Written by: J.M. Porup

Novelist J.M. Porup is An American Dissident in Exile. Read More

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