Binary Options Trading Basics A Simple tactics as 1-2-3

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Simple Moving Average Binary Options Trading Strategy

Profitable binary options trading strategy can be built even on the most simple technical indicators such as Moving Averages. Using a combination of different types and settings for this widely used technical indicator as well as several general rules of Moving Averages’ behaviour could turn into a whole trading system which proved its profitability.

What is a Simple Moving Average Trading Strategy?

The best type of the Moving Average depends on the timeframe you choose to trade. The Simple Moving Average (SMA) works in the best way for short-term timeframes intraday (M1, M15, M30, H1, H4). Longer timeframes with a wider scale need to have an additional filter and the best type would be the Exponential Moving Average (D1, W, MN). This binary options trading strategy uses two indicators with different settings – periods 21 and 70. This combination allows a trader to monitor trend reversals as well as oversold and overbought levels when the price is going too far from its average value based on previous periods.

If you like this strategy, you might also be interested in this Rectangle Pattern

Simple Moving Average Trading Rules

After the price crossed one of the lines, we should wait a bit and see what would be the close rate of the current candle. This pause is needed for understanding if the reversal occurred. So, if the prices have reversed on the chart before reaching the second moving average (with the higher period of 70), then we enter the market on crossing (slightly earlier) of the first Moving Average with the period of 21.

The stop-loss order should be placed slightly behind the recent bottom or top (depending on the direction of your position).

How to use Simple Moving Average Strategy?

This simple binary options trading strategy has certain disadvantages though. One of them is a large number of fake signals which could occur when the trend is reaching its final stage (going to reverse). But at the same time, there is a huge advantage of this strategy which is the fact that you will always follow the trend when trading on this system. Sometimes beginners wish to open too many positions against the main trend, but this is definitely not the winning approach in binary options.

Binary Options Strategies

Here are collected the most accurate and profitable binary options strategies. As always, all systems for binary options trading on this website can be downloaded for free. I hope each of you will find a strategy for yourself here.

Forex trading strategy #4 (Simple 1-2-3 swings)

And here we are again talking about the strategy that withstood the test of time. This Forex trading method is based on the same study of defining support and resistance levels and trading upon the fact of their violation.

A trading setup requires only an open chart and no restrictions for the currency or timing preferences.

Entry rules: Once the price makes it through the “pivot Line” – dotted white line on the figure below (drawn using the latest price peak) – and closes above (for uptrend) or below (for downtrend) the line buy/sell accordingly.

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Exit rules: not set. However, exit can be found using Fibonacci method; or traders can measure the distance between point 2 and point 3 and project it on the chart for exit.

Additions: as an additional tool traders can use MACD (12, 26, 9). The rules for entry then will be next – let’s take a SELL order:

When MACD lines cross downwards, you look for 1-2-3 set-up to form. When the price starts “attacking” the “pivot Line” you check that MACD is still in SELL mode (two lines are heading down). Once the price closes below the “pivot Line” – place Sell order.

Same chart: MACD (12, 26, 9) is added.

Advantages: gives 100% profitable entries.
Exits update: Exit strategy page 4

Edward Revy,
http://forex-strategies-revealed.com/

Copyright © Forex Strategies Revealed

This is an extremely powerful strtaegy. Try using it on 4 hour charts. It also eliminates alot of bad trades. Also, RSI can be used for confirmation.

When i started trading the 1-2-3, i chanced upon some patterns, like double top, bottom, Flags, Pennants. With a little patience, trading can be profitable.

The 123 trading system is awesome,i placed 4 trades on the euro and 1 trade on the cable and i won 4 out of the 5 trades loosing the one on gbp/usd.This system is fantastic. but there is something i did in all my trades, (though im afraid its not right) and that is not waiting for the formation of the 2nd swing low ( point 3) before pulling the trigger at point 2, but despite that fact, i won 4 out of my 5trades. pls fellow traders, dont use my approach cos it may not work for u. Adedoyin Adebowale Raphael from NIGERIA

Edward thank you for a way out of the working class,great entry and exit points.only fools will discard this gem and go look for something else.its as easy as 1 2 3 lol Regards Pieter from south africa.

Sorry. I haven’t found anything profitable about it, except for 7 minutes of talking about how good it would be if we traded this and that. He doesn’t explain how to achieve that :(

Hi all, Hey People i have found very frofitable strategy (http://www.youtube.com/watch?v=oVGE4dxxypo) it is about 95 % profitable system (A B C D) I have fantastic resoults

live it alone in advance strategies there is trent traing and read it (friendly advice)

Point 3 can be determined only after it has “materialized” on the chart – it’s a visual confirmation that a top or a bottom has been created.

An indicator called “Fractals” can help finding point 3 too.

Kind regards,
Edward

how can we determine the point 3 in this strategy?

regarding the above screenshots:
We can’t expect all trades to be as perfect at the second picture, where price immediately shoots for the 1.618 FE level.
Rather many trades will look like the first picture example (with “why” on it). There the first wave ended before reaching the targeted 1.618 FE level, but that doesn’t means that the trade is over, because the second or third wave can reach the goal.

Kind regards,
Edward

can anyone explain to me differance of these two poto

Just wanted to say that I have used this method 3 times in 3 days on the 1hr charts for AUDUSD, USDJPY & GBPUSD and I have increased my account to the tune of 67%.
Easy to use, easy to apply and very easy to understand.
Thanks Edward bit of a gem this. I am looking forward to many more successes.

I have tasted this strategy and there were such situation. For exlample: I have found 1 2 3 points then I used FE (fibonachi). And Fobonachi shoewed to me levels. Some times price shakes to 1.618 level and some times price stops near the 2 point (of course after crossing our resestance line along the point 2) and goes back.
Please tell us more details about exit.

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