More profit from options?
- VFX Blog
Moving Average is one of the most proven tools of how to make money on binary options. The "classic" averages continue to make a profit, but MA modifications can significantly improve the results.
The purpose of the Moving Average is to smooth out the market "noise" to show the true direction of the trend. The average chart itself acts as a dynamic support/resistance level.
- The average is directed upwards, the price is higher - an uptrend;
- Downward, price lower - downtrend;
- Sideways movement - in the market there is the balance of power buyers/sellers (flat). We are waiting for the start of a new trend with confirmation from binary options software.
Arnaud Legoux Moving Average (ALMA)
For those interested in the mathematical algorithm of the indicator, see "Gaussian normal distribution". If simpler, the Moving Average value is calculated twice - from left to right, then from right to left of the current price.
- Advantage: the maximum "noise" from impulses, corrections and pullbacks is removed - we open options only according to the "real" trend and top binary options signals.
- Disadvantage: the delay remains at the level of the "classic" MA.
Remember, using binary option free signals: all Moving Average listed in the article gives good options trading signals only on a trend.
- Two ALMA with periods of 20 and 30. The classic combination of "fast" (period 20) and "slow" (period 30) Moving Average is used. Open option on the next candle after crossing the MA.
- Standard MACD (12, 26, 9). This indicator works both a trend and as an oscillator tool, so it will be the final signal to open a trade on binary options copy trading.
Binary options signals:
- CALL (UP) - option. “Fast” MA breaks through “Slow” from bottom to top. MACD is above the zero levels.
- PUT (DOWN) - option. Opposite conditions: “Slow” MA breaks through “Fast” from top to bottom. MACD is below zero levels.
Triple Exponential Moving Average (Triple MA, TEMA)
Designed to smooth out price fluctuations, thereby making it easier for the auto binary trader to identify the trend without the delay inherent in traditional moving averages (MA). To do this, TEMA takes several exponential moving averages (EMA) from the original EMA and then subtracts some of the lag.
TEMA is used like other MA. It can help determine the direction of price movement, signal potential short-term trend changes or retrenchments, and provide support or resistance.
- Tripple Moving Average and Simple Moving Average (SMA) with a period of 20. As in the previous strategy, there are two Moving Averages. SMA will be a "slow" Average, which determines the direction of the medium-term trend. "Fast" Tripple MA reacts to pullbacks and corrections on which free binary options signals appear.
- RSI with a period of 14 and an additional level of 70/30. Trend indicators must necessarily be confirmed by at least one oscillator indicating an overbought when buyers can no longer move the price up, or oversold where there is almost no one in the market to sell at lower prices.
Binary options free signals:
- CALL (UP) - option. TEMA is higher than Simple MA. RSI up from the oversold or middle level.
- PUT (DOWN) - option. Opposite conditions: TEMA is below Simple MA. RSI down from the overbought or middle level.
Hull Moving Average (Hull MA, HMA)
Even less delay than in TEMA - Hull Moving Average is usually ahead of the value of the usual average, with high accuracy on binary options copy trading can predict a trend reversal in 2-3 bars.
- Hull and Simple Moving Average with a period of 20. The minimum delay of the Hull average allows binary options software to more accurately determine the moment of the start of a pullback or correction, open an option at the very beginning of the movement. Trading on the Hull MA reversals is only for experienced traders!
- Stochastic − the oscillator will assess the current balance between buyers and sellers: the predictor above level 80 − the end of the uptrend (overbought), below 20 − the end of the downward (oversold).
Binary options software signals:
- CALL (UP) - option. The HULL MA crosses SMA from the bottom up. Stochastic comes out of the oversold zone (level 20).
- PUT (DOWN) - option. Opposite conditions: The HMA crosses SMA from top to bottom. Stochastic down from the overbought zone (level 80).
Recommendations about use …
- Even on the minute timeframe, Stochastic and RSI rarely goes into the extreme zones and you can miss a lot of good deals. If price and oscillator start moving in one direction − you can open a deal. No 60 second binary options!
- During the publication of important fundamental news and statistics, we do not open options 30 minutes before the news and 30 minutes after the publication; cautious traders can close current deals. To control the events, we use the economic calendar included in the all popular binary trading platform!
Summarize… Modified Moving Average shows good results, both in manual trading and binary options copy trading. Combine them with the "classic" MA, see additional confirmations on the oscillators, volume indicators and get a stable profit.