Timeframe M5: making money on oscillators
- VFX Blog
- Strategies
Scalping strategies on the minute timeframe remain popular. But, you can quickly get both profit and loss. Let's increase profit using M5 timeframe (5 minutes) and auto binary signals software from vfxAlert service.
Binary strategy characteristics:
Type: Trend
Timeframe: M5.
Trading asset: Any currency pairs. The main requirement is a fixed (2-3 points) spread and no hidden fees.
Trading time: All Forex trading sessions.
Recommended expiration: 5-10 min.
Used indicators
The strategy uses a classic combination of two overbought/oversold Stochastic oscillators with different periods. The Stochastic 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):
- «Slow» Stochastic with period 14. Determines the medium-term trend for the working timeframe. It will be the first signal of the beginning of a reversal or continuation of the price movement.
- «Fast» Stochastic with period 9. Confirms the momentum in the direction of the trend for the next 3 or 5 candles. You can open an option after confirming binary options signals from the vfxAlert service.
After installing the binary indicator on charts, we look at the examples of signals:
Trading binary options signals:
- CALL - option. The chart shows an uptrend or an upward reversal. All oscillators have left the oversold zone or are in the overbought zone.
- PUT - option. Opposite conditions: The chart shows a downtrend or a down reversal. All oscillators have left the overbought zone or are in the oversold zone
Open a trade on the next candle after binary signals. The time of expiration of options has to be not less than 7-10 minutes even if as a working timeframe it is chosen of minute, as in our video.
Recommendations about use …
- There is less market "noise" on the M5 timeframe than on the minute one. Scalping is more "calm", there is time to analyze the situation and open the option correctly. Remember the basic rule of trading - the larger the signal binary options timeframe, the more profitable the trade.
- Even on the minute timeframe, Stochastic rarely goes into the extreme zones and you can miss a lot of good deals. If price and Stochastic start moving in one direction − you can open an option!
- You can improve the reliability of Stochastic signals with a trend indicator such as Moving Average. In our case, we receive additional confirmation from vfxAlert. The service strategies include Moving Average, additional binary options indicators on the chart only at the request of the trader.
- Even though you can trade throughout the day, the most profitable results were obtained in the second half of the US session (from 16:00 UTC) and the end of the Asian session (until 06:00 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.
Summarize…
The minute timeframe attracts newbie’s with quick profits and a large number of transactions. You need to understand that we are working with market “noise” on which, according to statistics, up to 50% of live binary signals is false. Start trading on timeframes M5 and higher. Only after experience and consistently profitable results, switch to a one-minute chart.