Buy-Sell Alert” binary options trading strategy
This strategy is based on the “TMA slope normalized” indicator, which is specially adapted for options trading with an expiration date of one hour or more. The system is suitable for all currency pairs of the Forex market, stocks, SFDs, futures, metals and oil. The Metatrader terminal with a set of indicators is used for analysis. Templates for trading on different timeframes are slightly different. Charts with timeframes from 5 minutes to 1 day are used for currency pairs. For other markets, only charts with timeframes exceeding 30 minutes are used. Expiration time for 5 minutes – 60 minutes, 15 minutes – 240 minutes, 30 minutes – 300 minutes or closing the day, 60 minutes – 600 minutes or closing the day, 240 minutes – 2400 minutes. For the daytime timeframe, the time of operation is 10 days. You can trade on the types of options “High/Low” and “One Touch”.
The “TMA Slope” indicator is represented in the lower window of the terminal by the red-green histogram, which determines the direction of the market movement: with green bars the price moves upwards, the red histogram – the price moves downwards, the grey histogram – the flat area. Besides, with the help of the “TMA slope normalized” indicator one can determine divergences: if the histogram bars decrease with the price growth, it means that the currency rate may fall soon. The “Support and resistance” indicator highlights the levels from which you can trade. The “Trend Arrows indicator” and the “RSI Chart Bars” indicator, which colors bars in blue or red, help to determine the direction. The “Di Napoli Targets” (for 5 and 15 minute timeframes) and “Pivot Daily” (30 and 60 minutes) indicators are used to identify touch points. For higher timeframes “W1_Pivot” is used, which defines weekly levels. It is important that the system’s requirements correspond to the trading conditions, so ask how to choose a binary options broker.
Example of a promotion trade. You can buy the Call option after the yellow arrow “Trend Arrows” appears. The price should rise above the green support line. TMA slope normalized” bars should be green and “RSI Chart Bars” bars should be blue. The touch point is determined by the nearest “Pivot Daily” level at the top. It may be more profitable to identify touch points at higher levels.
Example of a downward trade. You can buy the Put option after the red arrow “Trend Arrows” appears. The price should fall below the blue resistance line. Indicator bars “TMA slope normalized” and “RSI Chart Bars” should be red. The touch point is determined by the closest “Pivot Daily” level at the bottom. It may be more profitable to define touch points by the following levels below.
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