5 Minute Binary Option Trading Strategy

Traders use many different trading strategies that let them to identify the best points to enter and get out 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

Yous must exist logged in to your IQ Option business relationship. Today’due south strategy gives the best results in the markets with loftier volatility. Take it into account when choosing the asset. Gear up the chart timeframe for i-minute.

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

Click on the Nautical chart Assay icon and find the RSI indicator. Exit the default settings. Then find the EMA and add information technology to your chart. Change its period to 200. Yous tin can see on the above chart that my RSI has got just one horizontal line at the level of 50. How I did that? Uncomplicated. I set the Overbought level at 50. Then I went to color 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 Selection platform, you lot have the possibility to save the configurations. This is very convenient when you lot use a strategy often. Next time yous will just accept to find a ready template instead of adding all needed indicators. Merely write the proper noun you want this item template to be called and click Save.

The strategy is used on the chart with a ane-infinitesimal candlestick period fix. You lot should, however, keep the position open for 5 minutes. The assumption is that the price will fall or ascension within 5 minutes from the signal received. And then prepare the expiration time for v minutes for your binary choice.

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

Trading binary options with the strategy that combines the RSI, the EMA and the engulfing blueprint is not very complicated. It requires you lot to follow a few simple rules and to human activity equally soon every bit you get a signal to open the transaction.

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

The offset affair is to observe the EMA200 line. The price bars should develop beneath it which indicates there is a downtrend.

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

With these two conditions met, look for the bearish engulfing pattern to appear. The body of the bearish candle should engulf the trunk of the quondam bar. When you notice such a pattern, open a brusque position right when the adjacent candle begins to develop.

Your merchandise should concluding for five minutes.

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

When you programme on opening a long position, at that place should be an uptrend in the marketplace. To ensure this is the instance, check where the candles are developing in relation to the EMA200 line. You are looking for a state of affairs when the cost is higher up the EMA200.

Now, bank check the RSI window. The indicator’s line should movement higher up the value of 50.

The last thing you are waiting for is the appearance of the bullish engulfing design. The pattern is valid when the body of the bullish candle covers the body of the previous price bar. Open the long trade immediately after the signal at the opening of the side by side candle. Concur the position opened for a duration of five minutes.

Summary

The strategy that joins the EMA, the RSI and the engulfing candlestick blueprint is quite like shooting fish in a barrel to use. Yous identify the trend with the assist of the EMA200, and then assess the toll momentum with the RSI and wait for the trigger which is the engulfing pattern. You should observe the chart carefully and enter the trade right afterwards the occurrence of the candlestick pattern. This will give the best results.

Nosotros are using the EMA200 here to identify the trend. We assume in that location is a downtrend when the price closes below it and the uptrend when the price closes above the EMA line. Simply equally the price frequently consolidates effectually the Exponential Moving Average, you may wish to adjust these criteria a niggling bit. You may, for instance, rely on five 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 higher up the indicator’s line.

You may also experiment with different trade duration. Peradventure iv minutes volition piece of work better for your profits. Or mayhap three?

Any you choose, merchandise in the IQ Option demo account first. You lot will not gamble your own coin but you volition get the time necessary to endeavour different settings and to find out what brings yous the all-time results.

Have yous 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 lot will observe further down the site.

All-time of luck!