Trading 1 minute binary options

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trading 1 minute binary options

We have already written frequently on our blog approximately shifting averages. This might be the choices maximum famous indicator in terms of technical analysis. Many strategies are based totally on it. Today, we’re going to describe a way that works properly with one-minute binary options.

The classic interpretation of moving averages

You probable already know that there are alternatives several types of shifting averages. Among them, you may locate the choices maximum popular ones, just like the simple transferring average (SMA), weighted shifting average (WMA), exponential shifting average (EMA). Their classical interpretations are the choices equal.

A scenario wherein the choices remaining rate is above the choices moving average is examine as a purchase sign. Conversely, if the candle crosses the shifting common downwards, it’s far a promote signal. This method in its best form gives many false indicators. Just look at the choices chart underneath and you may see what I am talking about.

Another not unusual technique is to apply 2 moving averages with one-of-a-kind durations. Popular pairs of averages are 9 and thirteen, 8 and 21, 10 and 30. In the choices chart underneath you may discover SMA(eight) and SMA(21). The SMA(8) follows the rate quicker than the choices SMA(21). The signal to shop for is while the quick average crosses the choices gradual common upwards. The sign to sell is when the fast common crosses the slow average down.

Both of those strategies paintings. However, it’s far better to apply them in aggregate with a set forestall loss and take profit. Binary options, but, are an instrument that does not provide such possibilities. Here we’re best assessing whether or not the market will pass up or down. Our evaluation is tested via the real course of the marketplace.

Strategy for 1-minute binary options using SMA(eight) and SMA(21)

As I mentioned, binary options require a slightly distinctive method to trading. We will use the choices equal averages, SMA(8) and SMA(21). First of all, they will be used to determine the present trend. If the choices average is extra than sluggish, then we are dealing with an uptrend. If the short average is beneath the choices sluggish common we say that the market is in a downtrend.

The fashion is one component and the second the location is opened is any other. Our method is about being smart. If the fashion is downward, we can try to open the option for charge falls. The location wherein we will change is to be in reality luxurious within the marketplace. If we’ve got an uptrend, we want to open an choice for the choices rate growth, however in an area where it’s miles extraordinarily cheap. In this manner, we’ve a hazard to reach 60-70% performance of our trades. But what does this mean in realistic phrases?

Practical examples excellent show the concept of this method. If there is a downward fashion we watch for the choices charge to exceed the quick common (SMA8) upwards. If this takes place, we watch for the price to without a doubt ruin thru the SMA8. Some buyers will examine it as a buy signal, however in such situations, the rate generally returns. This is our signal to open a 1-minute option for a charge drop. In the chart under I present one of the transactions. The pink rectangle suggests where it’s far exceedingly pricey, which is ideal for establishing positions for rate drops.

If we have an uptrend we wait until the choices charge breaks downwards successively SMA8 after which SMA21. Afterwards, we quick open the option for the choices rate boom. Look at the choices chart below.

Summary notes

Remember that this approach, like every other, does no longer work each time. In addition, it calls for some practice. It is good to exercise it to your demo account.

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Fulltime Day trading, and help Iq option wiki in my spare time to construct an high-quality platform to assist novices obtainable. #virtual nomad, traveling all over the global.

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