Clever 1-minute binary options strategy with SMA 8/21 - IQ Option Wiki

 Clever 1-minute binary options strategy with SMA 8/21. We have already written many times on our blog about moving averages. This is probably the most popular indicator when it comes to technical analysis. Many strategies are based on it. Today, we are going to describe a method that works well with one-minute binary . The classic interpretation of moving averages. You probably already know that there are several types of moving averages.

Among them, you will find the most popular ones, like the simple moving average (SMA), weighted moving average (WMA), exponential moving average (EMA). Their classical interpretations are the same. The closing price crosses the moving average. A situation where the closing price is above the moving average is read as a buy signal. Conversely, if the candle crosses the moving average downwards, it is a sell signal. This strategy in its simplest form gives many false signals.

Just look at the chart below and you will see what I am talking about. The typical interpretation of SMA. Using 2 moving averages to generate trading signals. Another common technique is to use 2 moving averages with different periods. Popular pairs of averages are 9 and 13, 8 and 21, 10 and 30. In the chart below you will find SMA(8) and SMA(21). The SMA(8) follows the price faster than the SMA(21). The signal to buy is when the fast average crosses the slow average upwards.

The signal to sell is when the fast average crosses the slow average down. Signals from short and long-term moving averages. Both of these techniques work. However, it is better to use them in combination with a set stop loss and take profit. Binary options, however, are an instrument that does not offer such possibilities. Here we are only assessing whether the market will go up or down. Our assessment is verified by the actual direction of the market.

Strategy for 1-minute binary options using SMA(8) and SMA(21) As I mentioned, binary options require a slightly different approach to trading. We will use the same averages, SMA(8) and SMA(21). First of all, compare forex robot software they will be used to determine the existing trend. If the average is more than slow, then we are dealing with an uptrend. If the fast average is below the slow average we say that the market is in a downtrend. Downtrend and uptrend determined with 2 moving averages.

The trend is one thing and the moment the position is opened is another. Our strategy is about being clever. If the trend is downward, we will try to open the option for price falls. The place where we will trade is to be clearly expensive in the market. If we have an uptrend, we want to open an option for the price increase, but in a place where it is extremely cheap. In this way, we have a chance to reach 60-70% efficiency of our trades.

But what does this mean in practical terms? Opening positions for price decreases. Practical examples best show the idea of this method. If there is a downward trend we wait for the price to exceed the fast average (SMA8) upwards.

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