Developing a Binary Options Strategy and Entry Signals in Binomo
The Binary Options Strategy on Binomo presented here is based on technical analysis. This guide is meant to be an introduction and a starting point. To take full advantage of these strategies, you will need a level of technical analysis knowledge that is beyond the scope of this guide. However, you can easily find information online to supplement your knowledge. Once you want to implement one of the strategies listed here, simply run a Google search using the strategy title as the search term and you will find a wealth of information that will allow you to gain the knowledge you need to implement the strategy.
Moving Averages Strategy
Moving averages give you a clue as to the direction of the market, this is useful in identifying trends. Trends are good entry signals. The disadvantage of moving averages is that they tend to follow the market so you need to use a short-period moving average, such as a 5 or 6-day moving average, to reflect current price action.
Moving averages are the most basic and most widely used technical indicators. They are used to easy out rate action. Moving averages are used as trend lines that adapt to price changes, rather than just as regular trend lines.
Moving Averages strategy gives you the following signals:
- If the closing price moves above the moving average - this is a buy signal.
- If the closing price falls below the moving average - this is a sell signal.
Moving Averages Crossover Strategy
Crossover Moving Averages is another strategy that can help you identify trends. It consists of two moving averages: a "fast" moving average (for example, 10 bars) and a "slow" moving average (for example, 15 bars). The slow-moving average needs to use a larger number of days than the fast-moving average. Crossovers are considered a basic form of signals and are preferred by many investors because they remove all emotions. The standard type of crossover is when the asset price moves from one side of the moving average and closes on the other side. Price crossovers are used by investors to see changes in momentum and can be used as a simple entry strategy. Closing above the moving average from below can indicate the start of a new uptrend. The Crossover Moving Average strategy gives you the following signals: When the fast-moving average crosses the slow-moving average from below - it is a buy signal. When the fast-moving average crosses the slow-moving average from above - it is a sell signal.
Turtle Trading Strategy
The Turtle Trading Strategy is quite popular among many traders, search the internet for an explanation on how to get the most out of it. Essentially, the Turtle evaluates the highest and lowest prices over the last 20 days.
The Turtle Trading Strategy offers you the subsequent signals:
- When the current price moves higher than the highest price of the previous 20 bars - it is a buy signal.
- When the current price moves lower than the lowest price of the previous 20 bars - it is a sell signal.
Moving Average Convergence Divergence (MACD) Strategy
The MACD strategy is another useful indicator in identifying trends. This indicator utilizes the relationship between two moving averages of price. Most traders use the difference between the 26-bar and 12-bar exponential moving averages (EMA). This difference is then plotted on a chart and oscillates above and below zero. The 9-bar EMA of the MACD called the "signal line," is then plotted on top of the MACD, serving as the trigger for buy and sell signals. The MACD strategy can be used in various ways, but the most popular is to use the signal line for entry signals as follows:
- When the signal line crosses the MACD from below - it is a buy signal.
- When the signal line crosses the MACD from above - It is a sell signal.
Disclaimer: This article is part of sponsored content programme. The Tribune is not responsible for the content including the data in the text and has no role in its selection.