5-10 Minute Binary Option Strategy

Traders use many different trading strategies that allow them to identify the all-time points to enter and exit their transactions. Some methods are based on candlestick patterns and some on indicators. The one I will present today joins the RSI, the EMA and the engulfing pattern.

Setting up the chart

You must be logged in to your IQ Selection account. Today’s strategy gives the best results in the markets with high volatility. Take information technology into account when choosing the asset. Set up the chart timeframe for 1-infinitesimal.

We volition use two indicators in this strategy, the Relative Forcefulness Index and the Exponential Moving Boilerplate. The RSI will exist used to identify the medium-term tendency. The EMA serves as a long-term trend filter.

Click on the Chart Analysis icon and find the RSI indicator. Leave the default settings. And so find the EMA and add together it to your chart. Alter its period to 200. Y’all can see on the above nautical chart that my RSI has got merely one horizontal line at the level of 50. How I did that? Simple. I prepare the Overbought level at fifty. Then I went to colour settings and fabricated the Oversold level transparent changing its opacity. This way I have an RSI indicator window with only one horizontal line I am interested in.

On the IQ Pick platform, you have the possibility to save the configurations. This is very convenient when you utilize a strategy often. Next time you volition just have to find a set template instead of adding all needed indicators. Simply write the name you desire this particular template to be called and click Save.

The strategy is used on the chart with a ane-infinitesimal candlestick menses set. You should, withal, keep the position open for five minutes. The assumption is that the price volition fall or rise inside 5 minutes from the bespeak received. And so set the expiration time for 5 minutes for your binary option.

Trading binary options with the RSI + EMA + engulfing design strategy

Trading binary options with the strategy that combines the RSI, the EMA and the engulfing pattern is not very complicated. It requires you to follow a few uncomplicated rules and to act as soon as you lot become a signal to open the transaction.

Opening short positions with the RSI + EMA + engulfing design strategy

The beginning affair is to notice the EMA200 line. The cost bars should develop beneath it which indicates in that location is a downtrend.

Next, await at the RSI window. There is a horizontal line with a value of 50. The indicator should run beneath this line.

With these two weather condition met, wait for the bearish engulfing pattern to appear. The body of the bearish candle should engulf the torso of the former bar. When you notice such a pattern, open a short position right when the side by side candle begins to develop.

Your trade should last for 5 minutes.

Opening long positions with the RSI + EMA + engulfing design strategy

When you lot programme on opening a long position, there should be an uptrend in the market. To ensure this is the example, check where the candles are developing in relation to the EMA200 line. Y’all are looking for a situation when the price is above the EMA200.

At present, check the RSI window. The indicator’due south line should move above the value of 50.

The last matter you are waiting for is the appearance of the bullish engulfing pattern. The pattern is valid when the trunk of the bullish candle covers the body of the previous toll bar. Open the long merchandise immediately after the signal at the opening of the adjacent candle. Hold the position opened for a duration of 5 minutes.

Summary

The strategy that joins the EMA, the RSI and the engulfing candlestick pattern is quite easy to apply. Y’all identify the trend with the assist of the EMA200, then assess the price momentum with the RSI and look for the trigger which is the engulfing pattern. You should notice the chart carefully and enter the trade right afterward the occurrence of the candlestick pattern. This will give the best results.

We are using the EMA200 hither to identify the trend. We assume there is a downtrend when the price closes below it and the uptrend when the cost closes in a higher place the EMA line. Just as the price frequently consolidates around the Exponential Moving Average, you may wish to suit these criteria a little fleck. Y’all may, for example, rely on 5 consecutive candles. So you will identify the downtrend when the last 5 candles were below the EMA200 and the uptrend when the last 5 candles were above the indicator’s line.

Y’all may also experiment with unlike merchandise duration. Maybe 4 minutes will piece of work better for your profits. Or perhaps 3?

Whatever yous cull, trade in the IQ Option demo account first. Yous will not risk your own money merely you will get the fourth dimension necessary to try different settings and to discover out what brings you the all-time results.

Accept y’all ever used the strategy that combines the RSI, the EMA and the engulfing candlestick design to trade binary options? Share your results with us in the comments section which you volition discover further down the site.

Best of luck!