Simple Binary Options Trading Strategy for Beginners: Moving Average

Simplicity is what many novice traders look for in binary options, but professional traders have discovered a variety of powerful technical tools. You just need to study it well. One of the universal tools used in manual and automated trading is the Simple Moving Average (SMA).

This article discusses a simple binary options trading strategy for beginners using SMA. This strategy analyzes price trends. You can use timeframes M1 to D1, but keep in mind that the longer the timeframe used, the more accurate the signal produced.

Trading assets can be any currency pair. The main conditions are a fixed spread (2-3 points) and no hidden fees. The EUR/USD, GBP/USD, NZD/USD, and AUD/USD pairs tend to produce stable results.

Trading time: can be done in all Forex trading sessions. Choose an instrument with a payout percentage (premium) of at least 70-75%.

Indicators

SMA: 3
SMA: 5
SMA: 8

If After installing the moving averages, then the terminal working screen takes the following form (for the color can be changed).

What is the signal to open a CALL position?

Signal to open a CALL-position, you should see all three silvers. The three silVers should be directed upwards and arranged sequentially from bottom to top: "long - medium - short", or SMA (8) −SMA (5) –SMA (3). It is a must to confirm an uptrend. The option opens after closing the first breakout candle above the blue line SMA (3). For more details you can see the image below.

What is the signal to open a PUT position?

The signal to open an open PUT position on this condition is the opposite condition. The moving average indicator changes from top to bottom according to the "fast - medium - slow" scheme (SMA (3) –SMA (5) –SMA (8)) - you need to enter the market at the second bar after the breakdown. For more details, you can see the image above.

Recommendations for use:

It is recommended to receive additional confirmation from oscillators, for example, RSI, CCI, Stochastic, or vfx, which correctly take into account the appearance of overbought/oversold situations and volatility dynamics.
The optimal expiration time of the option for this strategy is 5-7 minutes, but other values can be chosen depending on the dynamics of the asset.
Periods of strong fundamental news are highly recommended for binary traders to skip because without a clear understanding of the direction, opening options are very dangerous.
Conduct a comprehensive market analysis

DISCLAIMER: Both the methods and signals available in this article are informational only and are in no way an action guide. The owners of the sites and programs do not accept any responsibility for the use of the information provided on the website and in the programs that have been created, for any errors. The information on this site does not constitute a public offering. REMEMBER!!! TRADING IS FRAUGHT WITH RISKS.