1 Minute Binary Options System

clever binary options strategyWe have already written many times on our blog most moving averages. This is probably the most popular indicator when it comes to technical assay. Many strategies are based on it. Today, we are going to depict a method that works well with i-minute binary options.

Contents

  • i
    The classic estimation of moving averages

    • one.1
      The closing toll crosses the moving average
    • i.2
      Using 2 moving averages to generate trading signals
  • 2
    Strategy for 1-minute binary options using SMA(8) and SMA(21)

    • ii.one
      Opening positions for cost decreases
    • 2.2
      Opening positions for price increases
  • 3
    Summary notes

The classic interpretation of moving averages

You probably already know that there are several types of moving averages. Among them, you will find the near popular ones, like the simple moving average (SMA), weighted moving boilerplate (WMA), exponential moving boilerplate (EMA). Their classical interpretations are the aforementioned.

The closing price crosses the moving boilerplate

A state of affairs where the closing price is above the moving average is read equally a buy signal. Conversely, if the candle crosses the moving average downwards, it is a sell signal. This strategy in its simplest form gives many false signals. Simply look at the chart below and y’all will see what I am talking virtually.

Typical interpretation of SMA
The typical estimation of SMA

Using 2 moving averages to generate trading signals

Some other common technique is to use two moving averages with different periods. Pop pairs of averages are 9 and 13, 8 and 21, x and thirty. In the chart below you will find SMA(eight) and SMA(21). The SMA(viii) follows the price faster than the SMA(21). The signal to buy is when the fast average crosses the slow average upward. The betoken to sell is when the fast boilerplate crosses the slow average downward.

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Signals from short and long-term moving averages
Signals from brusque and long-term moving averages

Both of these techniques work. Still, it is better to use them in combination with a set end loss and take turn a profit. Binary options, however, are an instrument that does not offering such possibilities. Here nosotros are but assessing whether the marketplace will go upwards or down. Our cess is verified by the bodily direction of the market place.

Strategy for i-minute binary options using SMA(8) and SMA(21)

As I mentioned, binary options require a slightly unlike arroyo to trading. We will employ the same averages, SMA(eight) and SMA(21). Offset of all, they will exist used to determine the existing trend. If the average is more than slow, then we are dealing with an uptrend. If the fast boilerplate is below the ho-hum average nosotros say that the marketplace is in a downtrend.

Downtrend and uptrend determined with 2 moving averages
Downtrend and uptrend determined with 2 moving averages

The trend is one thing and the moment the position is opened is some other. Our strategy is about being clever. If the trend is down, we will try to open the selection for price falls.

The place where we will trade is to be clearly expensive in the market place. If we have an uptrend, we want to open up an option for the price increase, only in a place where it is extremely cheap. In this way, we have a hazard to reach threescore-70% efficiency of our trades. But what does this mean in practical terms?

Opening positions for price decreases

Practical examples best show the idea of this method. If in that location is a downward tendency we await for the price to exceed the fast boilerplate (SMA8) upwards. If this happens, nosotros wait for the toll to clearly break through the SMA8.

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Some traders will read it as a buy signal, just in such situations, the price usually returns. This is our signal to open up a 1-minute pick for a price drop. In the chart below I present one of the transactions. The red rectangle indicates where it is relatively expensive, which is adept for opening positions for cost drops.

Sell in downtrend when it is expensive enough
Sell in a downtrend when information technology is expensive enough

Opening positions for cost increases

If nosotros have an uptrend we wait until the price breaks downwards successively SMA8 and then SMA21. After, nosotros quickly open the selection for the price increase. Look at the chart below.

Buy in uptrend when it is cheap enough
Buy in an uptrend when it is cheap enough

Summary notes

Remember that this strategy, similar whatever other, does not work every fourth dimension. In improver, information technology requires some practice. It is skilful to practice it on your demo business relationship.

Using this method, fix several charts for different currency pairs and try to monitor the situation in several markets simultaneously. Remember to set an appropriate expiry fourth dimension of i minute. Remember also that the method works all-time when the trend is also visible without the use of indicators.

This method may turn out to be very effective after a few weeks of training and observations. The key to success is a transaction in line with the tendency catching the ends of the corrective move in the existing trend. We hope that y’all will bask today’s strategy. Delight share your thoughts in the comments department below.

We wish you all the best!



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Source: https://www.iqoptionwiki.com/1-minute-binary-options-strategy-sma-8-21/

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