Market trading with the «Shaff Trend Cycle» indicator
- VFX Blog
The Forex market, like everything else in the world, moves cyclically. A price rise is always followed by a fall; the balance of power is constantly changing from buyers to sellers. Binary trading signals according to the current trend give the trader a good and stable profit. Correctly determine the direction or change of the current trend will help the «Shaff Trend Cycle» indicator.
Timeframe: Any in the range M1-M5. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal an increasing.
Trading asset: Any options trading signals. The main requirement is a fixed (2-3 points) spread and no hidden fees.
Trading time: All Forex trading sessions.
Percentage premium option: Not less than 70-75%.
The strategy uses two technical indicators:
- Envelopes: Period (14), Deviation (0,1), Moving Average (SMA). A variant of building dynamic price lines for trading in a trend channel on a rollback or breakdown of borders. Based on moving averages. The main idea is binary options trading signals on a dynamic price channel of three averages, within which the price moves most of the market time.
A decrease in the average period makes Envelopes more "active", an increase - slows down their dynamics. The smaller the selected working timeframe, the smaller the parameter should be to keep a required percentage of bars inside the channel.
The offset parameter shows how far channel boundaries will be plotted from the average value. It is recommended to choose a deviation within 0.1-2; otherwise, the channel turns out to be too "wide" and incorrectly options trading signal on evaluates volatility.
- Shaff Trend Cycle: Fast/Slow/Cycle Length (12/26/9). The oscillator of market cycles. First, the value of the MACD oscillator is calculated, and then double smoothing is performed using the Stochastic method. We receive accurate binary option free signals of a trend change with a minimum lag. It can be used as an indicator of overbought (level 75) and oversold (level 25). Good results on sideways trends of 50-60 points.
After installing the tools, the terminal's working window looks like this:
Options trading signals:
- CALL - option. The price is above the middle line or Envelopes border. The oscillator moves up or in the overbought zone above the level of 75.
- PUT - option. Opposite conditions: The price is below the middle line or envelopes boundary. The oscillator is going down or in the overbought zone below 25.
Open a trade on the next candle after binary options free signals. The time of expiration of options has to be not less than 15-20 minutes even if as a working timeframe it is chosen of 5 minutes, as in our video.
Recommendations about use …
- Scalping on the strategy on the cryptocurrency market requires preliminary testing. Here, market cycles on exchanges may vary in duration. Switch to a timeframe of 30 minutes, where crypto binary signals are more reliable.
- It is recommended not to trade during periods of low volatility. When the price movements end quickly, corrections and losses on auto binary signals begin. We always open up in the direction of the main trend!
- We do not trade on the output of strong fundamental news and statistics. The technical analysis stops working, the binary options copy trading signals are false.
Schaff Trend Cycle is a great oscillator that is worth exploring and adding useful indicators to your portfolio. The only thing to remember is that STC, like any other technical analysis tool, cannot provide accurate 100% winning binary signals all the time. Always look for additional confirmation!