Strategy «Scientific»: 4 indicators for profit binary options
- VFX Blog
When thinking about how to make money on binary options a trader should not believe in their simplicity. Large "CALL/PUT" buttons cause an immediate desire to click and quickly make a profit. The result is always the same - loss of deposit. Don't forget, standard technical analysis tools can bring a lot of profit as in the «Scientific» strategy.
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 four standard indicators:
- Hull Moving Averagе (HMA). Trend indicators by which we determine the opening point of the option. HMA more clearly defines a trend change, has less delay than simple (SMA) and exponential (EMA) Moving Average. The binary options strategy is not intended for trading during flat periods!
- Commodity Channel Index (CCI). A technical indicator that shows how far the price has deviated from its average range over the specified number of periods. If the price deviated more than the range (+100/-100 levels), we expect a trend reversal. This will be the first confirmation of the Moving Average signal.
- Average True Range (ATR). Shows the volatility of the current market and confirms the signal from CCI. If the volatility increases (the indicator goes up), there will be private trend corrections where you can open short-term binary options.
- Awesome Oscillator (AO). The oscillator should finally confirm the binary option forex signals of Moving Average. Additional signals can be obtained using intermediate levels − in this case, the Williams Magic Oscillator will also work as an indicator of overbought/oversold conditions.
After installing the tools, the terminal's working window looks like this:
Binary options signals:
- CALL option. The price above the Moving Average and the CCI and ATR oscillators are moving up. Awesome Oscillator histogram is green, above or as close to zero as possible.
- PUT option. The price below the Moving Average and the CCI and ATR oscillators are moving down. Awesome Oscillator histogram of red colour, below or near the zero levels.
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 oscillator!
Open a trade on the next candle after trading 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.
Recommendations for use:
- The calculation HMA results exceed the average price values and are too close to the chart on small timeframes, which increases the number of free binary signals. Moving Average should not work like this even if everything is good on historical data - if there is too "close" interaction increase the number of periods;
- The longer the sideways movement of the market continues, the higher the likelihood of a strong trend after its completion. In such cases, you can open trades at the first signs of a Moving Average reversal and strong auto binary signals from vfxAlert;
- 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!
Automatic trading according to the «Scientific» strategy is possible: several versions of binary option bot can be found on the network, but, like on any scalping system, it is better to trade manually using this scheme. This will allow you to more effectively tune the system to market changes, and the multicurrency properties of the strategy guarantee you a stable arrival every day.