Binary Options 2 Minutes Strategy

In this commodity, you volition larn almost the binary options strategy, which is based on the nigh popular technical analysis indicator. We accept already written many times on our weblog about moving averages. This is probably the almost popular indicator when it comes to technical assay. Many strategies are based on information technology. Today, we are going to describe a method that works well with one-infinitesimal binary options.

Contents

  • ane
    The classic interpretation of moving averages

    • 1.1
      The endmost cost crosses the moving average
    • 1.2
      Using 2 moving averages to generate trading signals
  • 2
    Binary options strategy for ane-minute binary options using SMA(8) and SMA(21)

    • ii.one
      Opening positions for price decreases
    • ii.2
      Opening positions for price increases
  • iii
    Which strategy is best for binary options?

The classic estimation of moving averages

Yous probably already know that there are several types of moving averages. Amid them, you will discover the most pop ones, like the simple moving average (SMA), weighted moving average (WMA), exponential moving average (EMA). Their classical interpretations are the same.

The closing price crosses the moving boilerplate

A state of affairs where the endmost price is above the moving average is read as a purchase signal. Conversely, if the candle crosses the moving boilerplate downwards, it is a sell bespeak. This strategy in its simplest course gives many false signals. But expect at the chart below and you will run into what I am talking well-nigh.

Typical interpretation of SMA
The typical interpretation of SMA

Using 2 moving averages to generate trading signals

Another common technique is to use 2 moving averages with different periods. Popular pairs of averages are 9 and 13, 8 and 21, x and thirty. In the nautical chart below y’all will notice SMA(viii) and SMA(21). The SMA(8) follows the price faster than the SMA(21). The signal to purchase is when the fast average crosses the slow average upwards. The indicate to sell is when the fast average crosses the ho-hum boilerplate down.

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

Both of these techniques work. However, it is better to use them in combination with a prepare stop loss and take turn a profit. Binary options, notwithstanding, are an musical instrument that does not offer such possibilities. Here nosotros are simply assessing whether the market place will go up or down. Our cess is verified by the actual direction of the market.

Binary options strategy for 1-minute binary options using SMA(8) and SMA(21)

As I mentioned, binary options require a slightly different approach to trading. We will use the same averages, SMA(8) and SMA(21). Outset of all, they will be used to determine the existing trend. If the average is more than tiresome, then we are dealing with an uptrend. If the fast average is below the tedious average we say that the market is in a downtrend.

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

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

The place where nosotros will trade is to exist clearly expensive in the market. If we accept an uptrend, we want to open an option for the price increase, simply in a place where it is extremely cheap. In this way, nosotros have a chance to accomplish threescore-seventy% efficiency of our trades. Merely what does this hateful in applied terms?

Opening positions for toll decreases

Practical examples best show the idea of this binary options strategy. If in that location is a downwardly trend nosotros wait for the price to exceed the fast average (SMA8) upwards. If this happens, nosotros wait for the price to clearly pause through the SMA8.

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Some traders will read it as a buy point, but in such situations, the toll usually returns. This is our bespeak to open a 1-minute option for a price drop. In the chart below I nowadays one of the transactions. The cherry-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 it is expensive enough

Opening positions for price increases

If we have an uptrend we wait until the toll breaks downwardly successively SMA8 then SMA21. Afterwards, we apace open the option for the price increase. Await at the nautical chart below.

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

Which strategy is all-time for binary options?

Retrieve that this binary options strategy, like any other, does non work every time. In addition, it requires some practice. It is proficient to exercise it on your demo account.

Using this method, ready several charts for dissimilar currency pairs and try to monitor the situation in several markets simultaneously. Remember to set an appropriate expiry time of one infinitesimal. Recollect as well that the method works best when the tendency is besides visible without the use of indicators.

This method may turn out to be very effective later a few weeks of preparation and observations. The central to success is a transaction in line with the tendency communicable the ends of the corrective move in the existing trend. It tin be the best binary options strategy for beginners.

We hope that you volition enjoy today’s strategy. Please share your thoughts in the comments section below.

We wish y’all all the best!

Full general Risk Warning: The financial products offered past the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose

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Fulltime Twenty-four hours trading, and aid Iq pick wiki in my spare time to build an awesome platform to assist beginners out there. #digital-nomad, traveling all over the globe. https://www.instagram.com/bart_bregman/

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