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

• VFX Blog
• Strategies

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

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).



Binary options signals:

Once again, we remind you that options are opened when the current trend ends with a confirmed price reversal.

• RISE (CALL) option. The uptrend for all timeframes (M1-M5-M15) and the vfxAlert signal. Stochastic is above zero levels or in the overbought area.
  

• FALL (PUT) option.  Opposite conditions: downtrend for all timeframes (M1-M5-M15) and the vfxAlert signal. Stochastic also goes down to oversold.

Open a trade on the next candle after binary signals. 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 …  

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!

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!

Let’s summarize. Intraday strategy «Triple Screen» represents a rather reliable system of a conservative scalping for trade in the stable market. Parameters of Stochastic 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!