Best Binary Options Indicator Moving Average Crossover Strategy

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How to use the moving average indicator for trading binary options?

How to win at trading binary options is to be able to predict where the next price movement.

To perform the analysis of price movements one can use the indicator Moving average or often referred to as MA.

The indicator Moving average does look simple but if you can use it with either then it is very likely to win on trading binary options.

In this article, I will share a tutorial how to read or use the indicator Moving average along with strategies to determine where further price movement. Whether the movement of the price will be going up or going down.

So will facilitate traders in taking decisions open position trading is a Call or a Put.

What is a Moving average?

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The moving average is a moving average. What is the meaning of a moving average? It means the average price of an asset in the period given time.

The Moving Average is a very popular tool used by many traders who are still a beginner and also a professional trader.

The reason is that the price of an asset tends towards its average value. It could be said of sellers and buyers is bordered by the average price.

The Moving average indicator is the basis of various indicators and trading strategies.

What is the point of Moving Average?

  • Determining the trend
  • Determine the entry point
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The indicator Moving average there is 4 different Moving average line option, but We will only discuss two types of lines of Moving Average that is widely used by traders, namely:
  1. Simple Moving Average (SMA)
  2. Exponential Moving Average (EMA)
1.Simple Moving Average (SMA)

SMA is the most simple Moving average, as the name implies. However, proper usage can help traders achieve consistent profits.

The workings of the MA is smooth price movements that occur. So the bigger the period used the fine line anyway MA is shown.

'' The more subtle lines MA does that mean the more slow/slow reaction brought about pegged to the price movements ''.

Psychology line Simple Moving Average (SMA):
  • React slower on price movement compared with EMA
  • a signal Opportunity to appear slow
  • the possibility of false signals appears a little more.

2. Exponential Moving Average (EMA)

EMA more complicated calculations than in high school. EMA has a deeper role regarding the calculation of the average price within a certain time.

So the line of EMA is more sensitive to price movements that occur and the line shown any more aggressive than high school.

The psychology of the Exponential Moving Average line (EMA):
  • React more quickly to price movement compared with the high school.
  • the opportunities that appear more
  • possibility of false signals appear more.
For the difference can be seen in the picture below:
moving average envelope indicator

How do I use the indicator Moving Average?

To use it please select the indicators the indicators on the menu, and then select the MA.
Next, select the type of indicator lines MA does the SMA or EMA to suit your taste.
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Binary Options Trading Strategies Using The Moving Average Indicator

Following is the trading strategy using 2 line indicator moving average:

In determining the right time to pick the CALL or PUT, we will use 2 different Moving average line period i.e. the period 14 and 35 Period.

There are two kinds of strategies that we will use IE
  1. The strategy of crosses
  2. Strategy area Moving average

1. The strategy of the indicator Moving Average Crosses

We will use 2 lines of indicator Moving Average with period 14 and 35, to make it easier in doing the analysis should use different line colours.

1. Click menu and select indicators indicator Moving Average with period 14 and select the colour red
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2. click the menu again and select indicators Moving Average with a period of 35 and select the colour blue
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3. So will look 2 line Indicator Moving average
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4. It's time waiting for the right time to do a CALL option or a PUT

Select CALL:
If the red line (14) penetrating the blue line (35) from bottom to top.
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Select A PUT:
If the red line (14) penetrating the blue line (35) from top to bottom.
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To be more accurate we recommend using time interval or time candlestick which corresponds to the time expired you choose.
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  • Time expired For about 60 seconds of use time interval or time candlestick 15 seconds
  • Time expired For about 5 minutes use time intervals of 1 minute
But this is not absolute, you can choose a setting that is comfortable for you to use.

2. The second Area Strategy Indicator Moving Average

This strategy also uses two different indicator line period i.e. the period 14 and 35. How is the same as above?

This strategy utilizes the area from the second line of the indicator. The following area in question:
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1. when after the red line (14) penetrating the blue line (35) from the bottom upwards (Uptrend)

We can CALL options when price movement touches on areas of the two Moving average lines.
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2. when after the red line (14) penetrating the blue line (35) from the top down (Downtrend)

We can do option PUTT when price movement touches the area from both the line Moving average.
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After the movement of red lines penetrating the blue line should simply open the position up to 2 times only due to anticipating if the movement of the boom that occurred was not strong enough.

Also Read:

Do open position again after penetrating the red lines blue line again.

That's binary options trading strategy using the indicator Moving average, hopefully, this tutorial is helpful to you in profit on a consistent basis.
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29 September 2018 at 00:36

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