Binary options trading strategy “RSI and SFX MCL”
Technical analysis is required to trade binary options. The easiest way to do it is in the Metatrader terminal, designed for trading on the Forex market. Standard and custom MetaTrader indicators are used in this trading strategy. This system can be used for “High/Low” and “One Touch” binary options. Trading is carried out on the main currency pairs (EUR/USD, GBP/USD, USD/CHF, USD/CAD, AUD/USD.) Charts with M5, M15 and M30 timeframes are used for analysis. Expiration time for M5 is 60 minutes, for M15 – 180 minutes, for M30 – 320 minutes.
The main indicator of the system is “SFX MCL”, which represents two moving averages with periods of 5 and 6 different characteristics. Three more indicators are used to filter signals. They are displayed in the lower chart windows. This is a 5-period RSI combined with two MAs (17 and 34), Stochastic and Trend Reversal. In addition, the main chart automatically shows the levels of the “Pivot points Levels” indicator, which are used to determine the daily range and targets in the case of trading on the “One Touch”. The target is determined by the nearest level in the direction of travel.
This picture shows an example of upward trading.
The green line of the “SFX MCL” indicator should be higher than the blue line;
The “RSI” indicator rises, but not above 80, and the MA 17 crosses the MA 34;
The “Stochastic” indicator crosses upwards, but is not in the overbought area;
Trend Reversal bars are blue
Example of a downward trade:
The green line of the “SFX MCL” indicator is below the blue line;
The “RSI” indicator rises down, but not below 20, and the MA 17 crosses the MA 34;
The “Stochastic” indicator crosses downwards, but is not in the oversold area;
Trend Reversal bars are red.
You can also use fixed targets for One Touch trading, depending on the time frame. For M5 it is 15 points, for M15 it is 18 points, for M30 it is 22 points. Before you start trading, ask how to choose a broker to trade binary options.
Download system files.