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The trend is your friend

For this strategy we need real time chart. You can open it here. There is possible also to open it in popup window (check the top right corner of real time chart). And of course, there is possible to use any other trading platform with integrated technical indicators.

In this strategy we will use the following technical indicators: RSI and Stochastic oscillator.

Here is a short info about these indicators:
RSI or Relative strength index – is one of the most popular technical indicators. This oscillator index is showing the current and historical strength or weakness of a specific asset. It ranges from 0 to 100. It is commonly accepted that asset index below 30 indicates that asset is oversold and it is reasonable to consider it purchase. Contrary, and index value over 70 is indicating that asset is overbought and it may go down soon.
Stochastic oscillators – is a technical momentum indicator comparing a current asset price with its price range over a specified period of time. It contains two lines – %K (blue line) and %D (red line). Sometimes these lines called as Fast Stochastic (%K line) and Slow Stochastic (%D line).
%K = (Closing Price – Lowest Price) / (Highest Price – Lowest Price) x 100
%D is a moving average (usually with period 3).
More about them you can read here: RSI and Stochastic_oscillator:

For correct signal achievement we should run the three indicators with the following parameters:
1) Stochastic Oscillator:
Parameters (31, 9, 9);
Levels – 30 and 70

2) Stochastic Oscillator:
Parameters (16, 3, 3);
Levels – 30 and 70

3) RSI:
Parameters (14);
Level – 50

Here are the main principles of the indicators use:
● Stochastic Oscillator (31, 9, 9) is showing the direction of the trend.
● Stochastic Oscillator (16, 3, 3) is showing the points of trades.
● RSI (14) is an additional indicator and used as confirmation of correctness.

Let’s consider a couple of examples:

CALL option:
1) We should find an uptrend of the asset.
2) Stochastic Oscillator (31, 9, 9) lines should be above level 70
3) RSI (14) should be above level 50 and going up
4) Stochastic Oscillator (16, 3, 3) lines are crossing below level 70 and going up.
At this moment we can open a CALL option (see the explanatory picture).

CALL

PUT option:
1) We should find a downtrend of the asset.
2) Stochastic Oscillator (31, 9, 9) lines should be below level 30
3) RSI (14) should be below level 50 and going down
4) Stochastic Oscillator (16, 3, 3) lines are crossing above level 30 and going down.
At this moment we can open a PUT option (see the explanatory picture).

PUT

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