5 Minute Trades with the Trix Indicator
Monday, June 23rd, 2014 by Tim Lanoue
One of the most difficult things to accomplish in life would be financial freedom, so many people are only fingertips away or one venture away to accomplishing what they never thought possible. Luckily for myself and thousands of others, binary options has been that golden paved road that has lead myself and many others to financial freedom without having to work paycheck to paycheck. Today, I am going to share one of the strategies that helped me to become as successful as I have been and I hope it can help you become one step closer to your goals.
The indicator that I use in this trading strategy would be the TRIX indicator, otherwise known as the triple exponential moving average indicator. The TRIX indicator is a center-line oscillator that oscillates from exponentiated values created by the price action of the targeted asset. The main function of this indicator is to determine whether or not the asset being watched is overbought or oversold, the way it does that is by measuring the momentum generated by varying price levels.
A couple of the best advantages about this great indicator is how it tends to be a leader in indicators, not a lagger, meaning that it helps to accurately predict future trends and is set up to filtrate market noise and tendencies making it easy to not fall victim to reversals.
Like I always preach, setting up the strategy is the most often overlooked and neglected portion of any trading strategy. Many traders are so eager to get started they simply make a small error by not having right settings or by trading during hours that are not major market hours. The first step you need to make sure is to choose an asset that you would like to trade, for me I solely traded the Eur/Usd asset simply because I have found over time it is the most reliable asset to trade. In addition, you need to make sure that the time frame that you are watching your asset is set on five minutes and you need to add your TRIX indicator to your chart. The last step that you need to make sure to do is change the settings of this indicator to a period of 7 and offset it to -5, once that is done you are good to trade.
Checkout other leading Indicators for Binary Options!
In the picture below you can see an example of how this strategy would be applied. Whenever our blue line crosses our yellow line in a certain direction we go ahead and place a call trade in that same correlating direction. So if our line crosses in an upward direction we place a five minute call trade for 5 minutes and then vice versa for a downward cross. The arrows indicate where the trade was placed and the yellow stars show where the trade would expire, as you can see all 5 of the trades placed were winners. I prefer to use this trading strategy during the New York trading session as well, try to stay away from intra-day trading when using this strategy when possible.
Using this strategy accurately and as described can definitely be your way to financial freedom. This trading strategy is very simple to setup and the signals generated are highly accurate. As always guys, if you have any questions or comments please feel free to leave them down below and I will make sure to get back to you!