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«Triple Screen» strategy and new vfxAlert indicator «Trends»

«Triple Screen» strategy and new vfxAlert indicator «Trends»

Trend trading remains the best option for how to make money on binary options. The trade will be more reliable when the trend in one direction is visible on several timeframes. The "Trends" indicator of the vfxAlert program will help you quickly assess the situation and find the moment for an option.


«Triple Screen» strategy by Alexander Elder


A classic strategy that uses information from three timeframes to open a trade: "small", "medium" and "long".


Strategy characteristics


Type: 

Trend.

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% 


According to the author, each subsequent timeframe should be at least 5 times greater than the previous one. This works well in the stock market, in Forex with its higher volatility, too "long" periods can miss a lot of good real binary options signals. For short-term options on major currency pairs, the combination "M1-M5-M15" is suitable.


The principle is simple: open an option on M1 when the trend on all three timeframes is the same. The figure shows an example of a PUT-option. The downtrend is visible. In order not to constantly switch between screens, we will use the «Trends» indicator, which shows the strength of the trend in addition to the direction.




We always start the analysis with the higher timeframe (M15), then move on to the average (M5), and if they coincide, you can open binary option with an expiration of 5-10 minutes.


For additional filtering of false live trading signals, we use 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).