Part №1: THEORY
For profitable and successful trading binary options, you can use the wonderful Indicator Stochastic Oscillator (Stochastic Oscillator). It shows the level of Overbought or oversold certain asset in the financial market. Where and how it can be analyzed, and then apply the findings to practice, we now face it.
First we need to review the schedule, which would display certain indicator. To do this, open the Live Graph >>>
Following the link, our next step is to set up the graph.
1) To begin with we are interested in, select a currency pair (or any other asset). I note that the favorable moments with clear signals on Stochastic indicator found an average 2-6 times for each asset. Therefore, choosing a binary options broker, make sure he has a lot of assets. No need to watch the whole day just for one asset or currency pair. Look to the tab of different options. And when you want us to see a clear signal that boldly open option.
2) Select 5-minute candles.
Indicator Stochastic Osc. Living on my schedule is immediately set, but we will need an additional indicator Linear Regression.
When all settings are now the most important thing to see strong and clear signals to bargain option. To do this, we go down to the bottom of the graph below to see the graph with two lines: Orange и blue. That we need them. The signal for the purchase of the option will be determined the location of these lines. More specifically, two cases.
When the first two lines are raised above $ 80And then deployed to fall. A very important point !!! The blue line is to break through the orange line downwards. That's like me in the image below. In this case, the option to open reduction on 10-15 minutes.
When the first two lines are omitted below 20And then deployed to increase. A very important point !!! The blue line is to break through the orange line upwards. That's like me in the image below. In this case, the option to open an increase of 10-15 minutes.
In all other cases, the signals may not be accurate. Even if the lines are above 80, or below 20, but the blue line does not break the orange line in the direction you refrain from deals!
Part №1: PRACTICE
Then I will tell how it all into practice. I open the platform your broker. See what currency pairs available for trading. Then, through them one by one on Live schedule. It took me somewhere 40 minutes until I saw just such a picture.
- currency pair GBP / USD;
- Stochastic indicator blue line, broke through the level 80, turned in the opposite direction and went through the orange line from top to bottom;
- But for me that is not enough. Remember, I wrote that we still need a light linear regression. On the live chart, as you can see, he is also set. I see that the price of the currency pair has a channel downtrend. Candles reached the top of the line soprativleniya, turned around and is now down to seek support line.
- After this test I was on 100% sure that in the near future the cost of GBP / USD will fall, and so opened the option to decrease over the next 12 minutes. And here is my profit on the transaction.
Also, if you analyze the currency pair, make sure that at this moment is not expected to yield important news that directly affect these currencies. To do this, management of the economic calendar. You can find it right on my site along with an explanation as to understand it. Check for this by Trading strategies on economic calendar news. And in the category News You can find the analysis of the economic calendar for each day of the week.