Sidus Method - Moving Averages on Binary Options
- VFX Blog
|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 currency pair. 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%.|
- two exponential (EMA) averages with periods 18 and 28. Determine the direction of the medium-term trend. On the flute at high volatility can be used as a price channel, inside which you can trade (width not less than 10-15 points). The breakdown will be a binary signal of a new trend. This method is recommended only for experienced traders!
- weighted (WMA) average with periods of 5 and 8. Assess the strength, direction of "fast" trends and show the point of opening/closing options. In the Weighted Moving Average, the last prices have the greatest weight, and therefore the reaction to their changes is faster!
Binary options signals:
- CALL option. Two fast WMA moving averages cross the slow EMA from the bottom-up.
- PUT option. Reverse conditions: WMA crosses the slow EMA from top to bottom.
Recommendations for use:
- You can improve the results by analyzing several timeframes at the same time. Older M5-M15 can give a hidden trend change signal, which is then confirmed by the deal on M1.
- An additional binary signals filter from moving averages can be RSI and Stochastic oscillators with their overbought levels (confirmation of PUT options) and oversold (for CALL options);
- We monitor the binary trading platform for the release of important fundamental news and statistics. We do not open the option immediately after the publication, and, if possible, close the current transaction 15-20 minutes before publication;
- Time of expiration can be increased up to 5-7 minutes if the steady trend is observed. Also during such periods, it is possible to open several options with different validity period to take away a maximum of the movement at minimal risk. If the broker gives the chance to close the option until expiration, then surely we fix the transaction (even if it in profit!) at the emergence of an opposite signal!