Technical analysis continues to be profitable, because most of the best binary options platform work on it. Indicators are time-tested and enable beginners to trade using simple strategies such as «Walker».
Type: Trend & Channel
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 increases.
Trading asset: Any options trading signals. 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%.
The strategy uses three technical indicators:
- Exponentials (EMA) Moving Averages with periods 35. 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!
- RSI with a period of 14 and an additional level of 70/30. Trend indicators must necessarily be confirmed by at least one oscillator indicating an overbought, when buyers can no longer move the price up, or oversold where there is almost no one in the market to sell at lower prices. Don't use 60 second binary trading!
- 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 indicators on binary options charts, we look at the examples of signals:
Top binary signals:
- UP (CALL) option. The price is above the Moving Average or breaks out from the bottom up. MACD is above the zero level, RSI is moving towards the overbought zone (level 70).
- DOWN (PUT) option. Opposite real binary options signals: The price breaks the Moving Average from top to bottom or moves below. MACD is below zero, RSI reversed to oversold zone (level 30).
Open a trade on the next candle after binary options free signals. The time of expiration of options has to be not less than 15-20 minutes even if as a working timeframe it is chosen of 5 minutes, as in our video.
Recommendations about use …
- 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). Make sure the strategy works using the binary options trading simulator.
- 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 licensed binary options brokers!
- After a strong trend, the RSI, like any other overbought / oversold oscillator, can "tread" in critical areas or near the 50 level for a long time without crossing it. At the same time, the EMA can give strong signals to open options. Whether to accept these free trading signals for binary options into operation or not, everyone should decide for himself, but it is still better for beginners to wait for a fully formed entry point.
- If the broker gives to close the option before the expiry, we do it (even if it is in profit!) when the opposite best binary option signals appears - repeated reverse crossing of the Moving Average with a rapid or relative change in the direction of the histogram MACD.
Let`s summarize. The "Walker" strategy shows the applicability of basic technical analysis tools both in the manual version and as binary option copy trading. It is important to remember the basic principle of any strategy – one tool can not be arguments for opening a deal. We are always looking for additional confirmation!