The main task of a binary options trader is to correctly determine one of the two possible options for the development of the market situation (CALL or PUT) and open a deal on time. The mobile version of vfxAlert and the simple Pocket Option strategy will help you always be in the market and make money.
Scalping is the most popular type of binary trading.
Today we are analyzing another scalping strategy for making a quick profit on binary options.
The strategy is based on two technical indicators. It is MACD with standard settings and EMA with 20 and 30 periods. It's suitable for trading with any currency pair. The main requirement when choosing currency pairs is a fixed (2-3 points) spread and no hidden fees.
We trade on Pocket Option and use vfxAlert signals.
Installing indicators on the vfxAlert and Pocket Option charts
Trading signals:
- CALL option. The price is above the Moving Average or breaks out from the bottom up. MACD is above the zero level.
- PUT option. Opposite conditions: The price breaks the Moving Average from top to bottom or moves below. MACD is below zero level.
The signals are simple, but beginners should definitely wait for confirmation of a trend or price reversal from the MACD. Especially when using Pocket Option copy trading. We trade options for a rebound from only 3-5 candles after its start, we will definitely wait for all EMA to reverse down
Recommendations:
- Exponentials Moving Averages is good at defining the current trend, but should only be used with oscillators. The reliability of signals can be increased by going to a longer timeframe. But on the minute Pocket Option strategy gives 70-80% of the right signals.
- The longer the sideways movement in the market, the higher the probability of a strong trend after its completion. In such cases, it is possible to open trades at the first signs of a Moving Average reversal and strong signals from vfxAlert and Pocket Option app chart.
- During the publication of important fundamental news and statistics, we do not open options 30 minutes before the news and 30 minutes after the publication; cautious traders can close current deals.
- If the PocketOption gives the chance to close the option until expiration, then surely we fix the transaction (even if it is in profit!) at the emergence of an opposite signal − repeated return crossing of slow-moving averages a fast-moving or if the histogram of MACD changes the direction of rather zero level.
Watch the video on how to trade with the vfxAlert mobile app.
