Strategy "Calm River" for beginners
- VFX Blog
We present the next simple exact binary options strategy on standard indicators of technical analysis. "Calm River" uses a classic combination, gives a stable profit on short-term options and is available even to beginners.
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.
Any currency pair. The main requirement is a fixed (2-3 points) spread and no hidden fees.
All Forex trading sessions.
Percentage premium option:
Not less than 70-75%.
The strategy uses two technical indicators.
- Two exponentials (EMA) moving averages with periods of 20 and 30. Trend indicators by which we determine the opening point of the option. The strategy is not intended for trading during flat periods. We trade only if the range is between at least 15-25 points!
- MACD (12,26,9). This indicator works both as a trend and as an oscillator instrument, so it will be the final signal to open an option.
After installing the tools, the terminal's working window looks like this:
Binary options signals:
- CALL option. The price breaks through from the bottom-up Moving Average. MACD histogram is above zero levels and is growing.
- PUT option. Reverse conditions: break down from top-bottom Moving Average, histogram below zero level or falls.
The farther apart the Moving Average is at the moment of breakdown, the more reliable the signal is!
You can open options on the price rebound from the moving average and the vfxAlert signal. For newbie’s, this trade is not recommended, it is better to wait for confirmation from two indicators!
Open a trade on the next candle after binary signals. Time of expiration of options has to be not less than 5-7 minutes even if as a working timeframe it is chosen of minute, as in our video.
As you can see, everything is quite simple, and you can quickly start trading, but you should consider several factors affecting the final result:
- The longer the sideways movement in the market, the higher the probability of a strong trend after its completion. In such cases it is possible to open trades at the first signs of a Moving Average reversal and strong binary options trading signals from vfxAlert;
- Even though you can trade throughout the day, the most profitable results were in the European (06:00 - 16:00 UTC) and the second half of the American session (from 16:00 UTC);
- 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!
- If the broker gives to close the option before the expiry, we do it (even if it is in profit!) when the opposite signal appears-repeated reverse crossing of the Moving Average with a rapid or relative change in the direction of the histogram MACD.
Intraday strategy «Calm River» represents a rather reliable system of a conservative scalping for trade in the stable market. Parameters of trade tools can be changed according to the current volatility. Once again, we remind you that most profitable binary options signals will only be on trend areas, during the flat periods we remain out of the market!