What is the best trading strategy for the Binary option trading.
The weekend has come as a marketplace for the OTC market, It means over the counter market. The OTC market is popular for binary options trading. I want to show you one trading strategy for binary option trading. Is is the name of EMA SCALPING STRATEGY.
Instruments: major Forex instruments with low spread such as EUR/USD, GBP/USD, AUD/USD, USD/CAD. The number of instruments could vary and should be chosen depending on the spread offered by your broker.
There are three groups of indicators that are used in the strategy:
Timeframes: M1 & M5.
1> EMA with periods 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15
COLOUR : pink colour
2> EMA with periods 17, 19, 21, 23, 25, 27, 29, 31, 33, 35, 37, 39, 41
COLOUR : blue colour
3> EMA with periods 44, 47, 50, 53, 56, 59, 62, 65, 68, 71, 74
COLOUR : green colour
# When to open long positions:
Buy when the pink EMA crosses over the green EMA from the top. Add to the long position when the price touches the green or blue line and returns to the pink line.
# When to open short positions:
Sell when the pink EMA crosses over the green EMA from the bottom. Add to the short position when the price touches the green or blue line and returns to the pink line.
# When to take profit:
On the M1 chart, take-profit is placed 5-7 points away from the entry level when opening an initial position, and 4 points away when adding to the position. Stop loss is placed 12 points away from the entry level.
On the M5 chart, take-profit is placed 12-20 points away from the entry level when opening the initial position, and 7 points away when adding to the position. Stop loss is placed 18 points away from the entry level.