“Moving average intersection” is an effective strategy for trading with binary options. It is very clear and intuitive – even a beginner can understand it.
All we need is to put on the “Real time chart” two indicators of the same type – fast exponential moving average and the slow exponential moving average (EMA). It is important to take into account the time frame – we will use the 5 minute chart (chart where the candles has duration 5 minutes), and buy the option with expiry time 15 minutes after reception of the signal from our indicator.
On our site, this indicator is placed in the “Real time chart” section and is called Moving Average Exponential (EMA).
We add two EMA, so it is needed to click twice the name of the indicator.
Moving average is a way to smooth out price fluctuations over time. In other words, the moving average calculates the average price for a certain period of time.
Exponential Moving Average is trend indicator. There is possible to find out the new trend beginning and the end of the previous one. The same time, the curve inclination shows the strength of a trend.
Length is a number of periods used to calculate the indicator, and it has the default value of 9. We will use two EMA, one of them will have a value of 9 – is our fast moving, and the second will have a value of 14 – this is our slow moving average.
Let’s look at the sequence of actions more closely.
Let’s go to the “Real time chart” and open the chart USD / JPY. Choose a timeframe of 5 minutes and click the indicator Moving Average Exponential (EMA) twice.
Then adjust the indicator.
Click the gear icon. The value for the first EMA leave 9 (by default), and the second value set as 14. In the Style tab, you can set up a graphical display of the indicator (line color, thickness).
If the fast moving average EMA (black) crosses the slow EMA (blue) upwards, it is a signal for option CALL on the next candle appearance. Expiry time for option will be 3-4 candles, i.e. 15 minutes.
If the fast moving average EMA (black) crosses the slow EMA (blue) downward, it is signal for PUT on the next candle appearance. Expiry time is 3-4 candles, i.e. after 15 minutes.
For example see the chart USD / CAD.
And here we see that all the received signals from exponential moving average intersections help us to receive profit.
If you follow these simple rules, you will understand that to make a profit with binary options is easier than you though before. With the help of these two indicators the percentage of your successful trades could be considerably higher.
Try this strategy at the IQ option platform with:
IQ option Free Demo account