Binary options simple moving average. The GEEK Strategy of Moving Averages
For the past two weeks we tested strategy End of the Day, a detailed summary of which is available in a separate article. As promised, today is the time to introduce another strategy that we will be testing for the next two weeks. The strategy is called EMA Rainbow and from a technical point of view it is extremely easy.
It shows the average price over a number of periods.
All this because it uses only one indicator, which is the exponential moving average EMA. In various sources I have found various information about the time frame used, so this strategy can be used from the interval M1 to H1 mainly but higher intervals are not excluded. Price makes pullback to the purple moving average and crosses it from above. If one of the next two candles are bullish start to grow and closes above the purple moving average, we open the CALL binary options simple moving average.
The expiration period of the option is three times the observed interval: If we observe a 1 minute interval, the option expires after 3 minutes If we observe a 5 minute interval, the option expires after 15 minutes If we observe the 15 minute interval, the option expires after 45 minutes If we observe a 30 minute interval, the option expires after 90 minutes 1.
If we observe a 1 hour interval, the option expires after 3 hours Buy PUT option: The moving averages are pointing downwards.
The price makes pullback returns to the purple moving average and crosses it from below. If one of the following two candles are bearish starts to fall and closes below the purple moving average, we open the PUT option.
If we observe a 1 hour interval, the option expires after 3 hours Try trading on binary options on currencies, indices, commodities and shares of popular companies. If you lose, regardless of the size of the loss, you never lose more than you bet.
You can also choose other expiration hours for options, both shorter and longer. Leave us a comment!