There are two options when trading on moving averages - speculate on a bounce or a breakout. As the title of this article tells, this proven strategy is for trading the breakout. The strategy itself is rather simple. Within the chart, you will be looking for instances where the market traded lower or higher than the moving average for a few days, and then tries to push past the SMA. False indicators are common, so some filtering out of potential entry points is necessary. This can be done using the MACD indicator, using the default settings of 12, 26, and 9.

For a Call option, the best entry would be when the hourly candle breaks the SMA and closes higher. The opposite applies for a Put option. Typically, this binary options strategy will offer you one or two entry points each week when trading it with a currency pair.

To get more use from it, consider using it along with more assets in more markets. Consider trading with a broker that offers plenty of currency pairs so that you will always have plenty of assets to choose from. The conditions of this method are quite straightforward, and it can really be used with any asset. Just be sure to look at the chart prior to the end of each hour when looking to purchase your next option. Feel free to test on your own before deciding to use this method in an actual investment situation.

Over the long-term testing or more times , the win rate should be reasonably high, meaning that there is money to be made when using this method. Still, as advised above, consider first doing your own testing on this and any other binary options strategy that you would like to use. To view or add a comment, sign in To view or add a comment, sign in. The SMA 8 follows the price faster than the SMA The signal to buy is when the fast average crosses the slow average upwards.

The signal to sell is when the fast average crosses the slow average down. Both of these techniques work. However, it is better to use them in combination with a set stop loss and take profit.

Binary options , however, are an instrument that does not offer such possibilities. Here we are only assessing whether the market will go up or down. Our assessment is verified by the actual direction of the market. As I mentioned, binary options require a slightly different approach to trading.

We will use the same averages, SMA 8 and SMA First of all, they will be used to determine the existing trend. If the average is more than slow, then we are dealing with an uptrend. If the fast average is below the slow average we say that the market is in a downtrend. The trend is one thing and the moment the position is opened is another.

Our binary options strategy is about being clever. If the trend is downward, we will try to open the option for price falls. The place where we will trade is to be clearly expensive in the market.

If we have an uptrend, we want to open an option for the price increase, but in a place where it is extremely cheap. But what does this mean in practical terms?

Practical examples best show the idea of this binary options strategy. If there is a downward trend we wait for the price to exceed the fast average SMA8 upwards.

If this happens, we wait for the price to clearly break through the SMA8. Some traders will read it as a buy signal, but in such situations, the price usually returns. This is our signal to open a 1-minute option for a price drop. In the chart below I present one of the transactions. The red rectangle indicates where it is relatively expensive, which is good for opening positions for price drops.

If we have an uptrend we wait until the price breaks downwards successively SMA8 and then SMA Afterwards, we quickly open the option for the price increase. Look at the chart below.

Remember that this binary options strategy, like any other, does not work every time. In addition, it requires some practice. It is good to practice it on your demo account. Using this method, prepare several charts for different currency pairs and try to monitor the situation in several markets simultaneously. Remember to set an appropriate expiry time of one minute. Remember also that the method works best when the trend is also visible without the use of indicators. This method may turn out to be very effective after a few weeks of training and observations.

The key to success is a transaction in line with the trend catching the ends of the corrective move in the existing trend. It can be the best binary options strategy for beginners. We hope that you will enjoy today's strategy.

Most beginner level traders tend to shy away from technical binary options strategies. However, there are a few technical strategies that are suitable for those who have just begun their trading career, and this SMA strategy is one of them. This method is based on a moving average for a set period, and works by highlighting very strong support or resistance levels.

There are two options when trading on moving averages - speculate on a bounce or a breakout. As the title of this article tells, this proven strategy is for trading the breakout. The strategy itself is rather simple. Within the chart, you will be looking for instances where the market traded lower or higher than the moving average for a few days, and then tries to push past the SMA. False indicators are common, so some filtering out of potential entry points is necessary.

This can be done using the MACD indicator, using the default settings of 12, 26, and 9. For a Call option, the best entry would be when the hourly candle breaks the SMA and closes higher. The opposite applies for a Put option. Typically, this binary options strategy will offer you one or two entry points each week when trading it with a currency pair. To get more use from it, consider using it along with more assets in more markets.

Consider trading with a broker that offers plenty of currency pairs so that you will always have plenty of assets to choose from. The conditions of this method are quite straightforward, and it can really be used with any asset.

Just be sure to look at the chart prior to the end of each hour when looking to purchase your next option. Feel free to test on your own before deciding to use this method in an actual investment situation. Over the long-term testing or more times , the win rate should be reasonably high, meaning that there is money to be made when using this method.

Still, as advised above, consider first doing your own testing on this and any other binary options strategy that you would like to use. To view or add a comment, sign in To view or add a comment, sign in.

Instructions for the SMA binary options strategy. To avoid problems, use this binary options strategy by following these steps: For a CALL option For a PUT option Like Comment Share. Trending Down Goldman Sachs Q4 profit tumbles on huge legal bills Jan 20, Trending Up Oil slump extends to a sixth session as recovery hopes wane Jan 12, Special Report Australian dollar forecast Seen at 0.

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