Strategy «West» - two indicators for fast profit
- VFX Blog
The binary trading platform offers a large selection of technical analysis indicators and beginners try to put them on the chart as much as possible. This does not improve the accuracy of binary options signals. Two or three tools are enough for stable profit as in the «West» 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 two technical indicators.
- Simple (SMA) and exponential (EMA) moving averages. 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!
- Williams Percent Range (Williams %R). Moving Average must necessarily be confirmed by oscillator indicating an overbought condition 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.
After installing the tools, the terminal's working window looks like this:
Binary options signals:
- Rise (CALL) option. The price breaks SMA from the bottom-up, Williams %R comes out of the oversold area (level 80) or is directed upwards.
- Fall (PUT) option. Reverse conditions: the price breaks SMA from the top-down, Williams %R comes out of the overbought area (level 20) or is directed down.
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 two indicators!
Open a trade on the next candle after 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:
- If the broker gives the option to close the option before the expiry, we do it (even if it is in profit!) when the opposite signal appears-repeated reverse crossing of the moving average or Williams chart %R changes direction.
- 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. To control the events, we use the economic calendar included in the all popular binary trading platform!
- You can significantly improve the result of scalping if you perform analysis on multiple timeframes simultaneously. For example, periods M5-M15 can give a hidden signal of a trend change, which is then confirmed by a deal on M1.
Automatic trading according to the «West» 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 profit every day.