Advance SMI Ergonic Oscillator Strategy

Thursday, November 20th, 2014

Wednesday, November 19th, 2014 by Tim Lanoue

3_728x90

Finding the right technical indicator to use in a trading strategy can be difficult, especially when you are just starting out with trading binary options and have no little to no knowledge about the fundamentals of trading. The focus of this article today is provide all you novice traders, along with experienced traders, a highly effective 5 to 15 minute trading strategy. This strategy will require the use of two technical indicators which are extremely useful when trading reversals.

Simple Moving Average

As many of you may know by now the simple moving average is one of my favorite technical trading indicators to use when trading binary options. I take that back, it actually is my favorite technical indicator, as you may have notice I include this indicator in about every one of my trading strategies. This is simply due this technical indicators amazing ability to generate trading signals. There are three different types of moving averages: simple, exponential and front-weighted. All three of the moving averages differ from one another and provide different measurements and functions. For this binary options trading strategy we are going to use a simple moving average set at a period of 2. Meaning that we are seeing the average price of this asset during the past two trading days. Once that is done you need to change the offset of this indicator to -2 (negative two). In the picture below you can see an example of how to edit the period of this indicator and the offset of this indicator. The charting solution that I use as well is www.freestockcharts.com.

SMI Ergonic Oscillator

Oscillating type of indicators are a very effective trading indicator to use when trading with binary options. Oscillators are defined as an indicator whose sole value oscillate above and below a 0.00 level. The value of the indicator will indicate to us whether the asset is currently showing signs of being overbought or oversold. This is particularly helpful in our trading strategy because our strategy is based on trading reversals, depending on whether the value of the indicator is below or above the 0.00 level will dictate our type of investment. The indicator itself is not strong enough to use on it’s own in a trading strategy but when combined with other technical indicators it can be extremely effective. In the picture below you can see how to add this indicator to your charting solution if you were using www.freestockcharts.com as your charting solution.

The SMI Ergonic Oscillator Strategy

When using this high success rate trading strategy we want to make sure that we are trading an asset, preferably a currency pair, that displays relatively low volatility. Basically meaning that the likelihood that the asset will change directions due to minor market fluctuations is small to none. Some popular currency pairs that fit this criteria are as follows: Eur/Usd, Usd/Cad, Nzd/Usd, Usd/Chf and Aud/Usd. Once we have an asset or two selected we make sure that the time frames that we are watching our assets is set to 10 minutes. This is a 5 to 15 minute expiry trading strategy, this works great with the classic option style of trading which is offered by most brokers. Once you have done the above just make sure to add your indicators which is shown in the pictures above. In the picture below you can see this trading strategy in action.

As you can see the offset of the simple moving average indicator acts as a great way to predict future price action reversals. As like with most of my trading strategies, our simple moving average indicators acts as our signal generator. When this indicators crosses a candle of our SMI Ergonic Oscillator then we can look forward to part two of this strategy. So a cross has been established, the last step is to make sure that a confirmation candle appears above or near our cross. Sometimes a confirmation candle won’t always appear above the cross, it may confirm your reversal a candle or two later which is still alright. Any confirmation candles that don’t appear before two candles of the oscillator is a no trade. In the picture above you can see examples of our confirmation candles and where our arrows are indicates the type of trade we would place at that moment.

When our moving average line crosses our SMI Ergonic Oscillator indicator in an upward direction and we have a green confirmation candle appearing above the break within two candles lengths then we go ahead and place a CALL trade for 5 to 15 minutes. On the other hand, when our simple moving average indicator crosses our SMI Ergonic Oscillator indicator in a downward direction we have to wait for a red confirmation candle to appear above the break within our two candle lengths, once the following has been confirmed then we can place a PUT trade with an expiry time of 5 to 15 minutes.

This is a relatively new trading strategy that I have developed and I have found great success with it these past couple weeks. Out of 200 demo trades I have had 156 trades land in-the-money. Meaning I have had a success rate of exactly 78% these past two weeks. I have yet to try this binary options trading strategy with stocks but I see no reason for it not working. If you guys would trade this strategy with the currency pairs listed above along with test the following high volume stocks and let me know how you do would be greatly appreciated. Stocks to test trade: Apple, Exxon, Nike, Facebook, Twitter, Microsoft and Google. I would recommend testing these stocks on a demo account while trading from the currency pairs listed above in order to make a decent profit!

Thank you guys for reading and hope this trading strategy provides you with great success like it has done for me lately. This strategy can used by traders of all experience levels, whether you are new or a veteran trader the information provided to you in this article is all you need to know when using this trading strategy. As always guys if you have any questions, comments or suggestions please leave them below and with the results that you yield. Have a great day and happy trading!

Ease of Movement Indicator: Stock Trading Strategy

Monday, November 17th, 2014

Monday, November 17th, 2014 by Tim Lanoue

Trading stocks can be a risky business venture to take on however if you have a technically sound trading strategy then your chances of succeeding highly increase. Trading stocks with binary options can be quite rewarding but at the same time it can be difficult. Luckily for us with binary options we don’t have to worry about any pip spreads we simply have to predict whether the price of the stock will increase or decrease from it’s current level. Today we are going to cover a great stock trading strategy that requires the use of only two technical indicators.

As you may have guessed, one of the indicators that we are using would be a moving average. However, the moving average indicator that we will be using is known as a Front Weighted Moving Average. There are three different types of moving averages: simple, exponential and front weighted. These three averages have different characteristics and functions. The purpose of the Front Weighted Moving Average would be to add more weight to moving average which can be used to determine hard reversal points.

The second indicator that we will be using is the Ease of Movement indicator. The Ease of Movement indicator is a rather unique technical indicator that I do not believe I have covered in any previous article. The main function of this indicator is to show the relationship between the asset’s price action and it’s volume. Not only does this indicator show us the relationship between those two factors but it also helps us see if the asset is currently overbought or oversold. This is a great benefit for us because the whole purpose of this strategy is to trade reversals.

When using this strategy we will want to make sure that we are trading with high volume stocks, and preferably during market hours. I highly recommend using this strategy during the New York trading hours and with the stock Apple. High volume stocks that should be considered are as follows: Apple, Exxon, Nike, Amazon, Twitter, Facebook, BAC, and Comcast Corp. Now that we have chosen a reliable stock to trade we need to make sure that our time frame is set at 15 minutes. Next we add the indicators to the charting solution. Once you add both, right click on the moving average indicator, select Edit, Change the Period to 2, and Change the Average type from Simple to Front Weighted. Once you have done all that we can wait for our signals to generate. In the picture below you can see an example of this strategy in action.

The signals generated are easy to see and extremely effective, as you can see 4 out of 5 trades ended up in-the-money. When using this strategy we wait for two occurrences to happen, first would be a cross between our moving average line and our Ease of Movement line. The second occurrence would be for both of those lines to cross the dotted line, once it does then we are good to place a trade. When our moving average line crosses our Ease of Movement line in a downward direction along with both of our lines crossing our Ease of Movement 0.00 level within 2 candles lengths then we are good to place a 5 to 15 minute trade and vice versa for the opposite direction.

For Binary Options Indicators covering 60 seconds to daily trades, visit the recommended Binary Options Indicators and Strategies on the BinaryoptionsChannel.com

Trading stocks with binary options can be difficult for traders of all experience levels. Luckily for us, this strategy is simple to use and highly effective. Make sure that you have the right set up and be patient for the signals to come. Like always, if you have any questions, comments or suggestions please feel free to leave them below!

Triangulation or Exchanging Crosses (Triangular arbitrage)

Monday, November 10th, 2014

Monday, November 10th, 2014 by Sjay Bell

You’ve likely known about arbitrage, where Forex traders can profit by exchanging the diverse trade rates of a specific currency. You presumably additionally know it can be pretty difficult for a small retail trader to accomplish.

A comparative rule, nonetheless, is utilized by Forex traders by exchanging diverse currency pairs off of one another; these would be “crosses”. For instance, exchanging EUR/USD, and USD/JPY, the “cross” would be exchanging EUR/JPY, on the grounds that it “crosses” between the two pairs. This is a trading method that can likewise be connected to Binary Options trading as a method for minimizing risk and producing more winning trades and additionally lessening misfortune on losing trades. It’s a method that obliges a definite level of experience, and demands the trader to keep up with a few markets at the same time. Therefore, it’s likely not the most suitable for easygoing or apprentice traders.

To better comprehend the thought here, you ought to consider Binary Options as a settled return wager. You know the amount cash you are risking, the amount you could get out, and there are just two conceivable conclusions: win or lose. On the other hand, with every currency pair, there are two variables. Every currency wins and loses esteem autonomously relying upon the monetary circumstance of every financial region. This has an impact on all the currency pairs its piece of; and due to arbitrage, those levels offset. At the end of the day, it’s uncommon at the cost of two currency pairs that have the same currency to be fundamentally out of sync.

How about we utilize a practical illustration: the EUR/USD? On the off chance that the European Central Bank is anticipated to increase interest rates, the value of the Euro will rise significantly, and the value of the pair will go up. The impact will be the same on other Euro crosses, for example, the EUR/JPY. In any case, the European Central Bank forecast doesn’t have any impact on the Dollar or the Yen, therefore the USD/JPY pair will proceed as though nothing happened.

Typically, in the event that you were exchanging and anticipated that the value of the Euro would increase, you’d purchase calls Euro based pairs and trust you are correct. Notwithstanding, you realize that arbitrage keeps the relative rate of trade between the Euro, the dollar, and a third currency-say, the Yen- stable. This is the place it gets entangled if the Euro neglects to go up against the dollar, that implies the dollar got stronger and additionally the Euro. Since you can’t hedge your wager against the same pair, in light of the fact that the payout on Binary Options is short of what the return; you can utilize the cross to “secure” your more risky trades against the likelihood that your trade won’t go as planned.

To proceed with the scenario, you’re following the EUR/USD and see that it’s going to go up. At that point you triangulate off of a third currency, in the same way as the Yen: you purchase a call focused around the Euro, and an alternate call focused around the dollar. It’s essential that these three choices have the same expiry time and are purchased as near the same time as could be expected under the circumstances. The thought is that if both of the base monetary forms go up, regardless you’ll get two choices out of three to lapse in the money. This provides for you an essentially higher rate of success. Here’s how it meets expectations in this case:

On the off chance that the Euro goes up, you’re EUR/JPY and EUR/USD calls lapse in the money. If the dollar goes up, then you’re EUR/JPY and USD/JPY calls lapse in the money. Obviously this technique is not impeccable, overall everybody would do it and we’d live in a circle of boundless cash: if the Yen goes up, then just your EUR/USD pair expires in the money, and you have two calls out of the money.

Keep in mind that “up” regarding the matter of currencies is a relative worth. For instance in the EUR/USD pair, “up” implies that the Euro got stronger with respect to the dollar. That is the same as saying the dollar got weaker with respect to the Euro. Thus, the method applies the same path yet in opposite on the off chance that you anticipate that a currency will go “down”: you triangulate calls of a third currency pair.

I hope you all enjoyed this and found it very beneficial. If you have any questions, please comment below and I will respond as soon as possible. Be sure to check out ours articles for more amazing information. Cheers!

Advance Binary Ichimoku Cloud Strategy

Friday, October 31st, 2014

Friday, October 31st, 2014 by Tim Lanoue & Michael Freeman

1_728x90

Establishing a strong foundation before trading binary options by yourself is imperative if you wish to succeed in this highly profitable online industry. Today we are going to go over an in-depth trading strategy that I have spent many months trying to perfect and feel like I have finally done it. This strategy will require the use of an exponential moving average and the Ichimoku Cloud indicator which we will discuss in brief detail below.

Exponential Moving Average

A technically driven indicator that bares much similarity to a simple moving average indicator but more weight is added to the indicator to make it exponential. Commonly known as the exponentially weighted moving average this indicator has many duel purposes. One of the keen advantages of an exponential moving average is that is reacts to changes in market conditions quicker than most other indicators. Just like the simple moving average the exponential moving average works on a predetermined time period from a set number of days. In this strategy for instance the period that we will be using is 16, meaning that the line formed will show the average price of that asset over the last 16 days.

Ichimoku Cloud Indicator

Perhaps one of the least utilized technical indicators due to the complex sounding name the Ichimoku Cloud Indicator is one of the best indicators to use when trading binary options. However, just as the name may hint this indicator is kind of difficult to understand and does take a lot of practice to get use too. The main functions of this indicator is to determine price trends, spot support and resistance levels, and provide strong trading signals. In the picture below you can see all the intricate parts of this indicator and they come together to work as one.

Strategy Set-Up

Oftentimes the most overlooked aspect of a trading strategy would be the set-up. Sometimes the simplest mistakes in setting up can be the ultimate determining factor to whether or not your trade is successful or not. When setting up this strategy we want to use a low volatility currency pair or a high volume stock. A few popular low volatility currency pairs that we should consider trading would be the Eur/Usd, Usd/Cad, Nzd/Usd and Aud/Usd. Now some high volume stocks that we should consider trading would be Apple, Facebook, Amazon, Exxon and AMEX. Now that we have chosen a reliable asset to trade we need to make sure that the time frame upon which we watch that asset is set to a period of 15 minutes.

Implementation of the Ichimoku Cloud Strategy

Now that we have the proper set up we can work on applying this set-up into a highly profitable trading strategy. There are three main signal lines that we use; the red conversion line, the leading span a line and the exponential moving average line. The exponential moving average line is the main signaling line that we use, depending on the direction that it cross our conversion line or our leading span a line determines the type of trade we will place. In the pictures below you can see a few examples of strong trading signals and entries.

As you may have noticed, we place a call trade when our exponential moving average crosses our leading span a or merges with our leading span a line. Now in the pictures below you can see how a put trade is signaled and should be traded. When our exponential moving average line crosses our red conversion line then we go ahead a place a put trade.

All expiry times when using this strategy should be limited from 5 to 10 minutes, however 15 minutes trades still mostly end up in-the-money. I highly recommend using this trading strategy mostly with currency pairs because stocks can be a little difficult to trade sometimes if not during market hours. In addition, this strategy is best utilized during trading hours like the New York trading session, I don’t recommend this trading strategy during intra-trading hours.

This Ichimoku Cloud trading strategy is an extremely effective trading strategy that can be used by traders of all experience levels. Now practicing will definitely be a key to your success when using this trading strategy. When using this strategy successfully you can expect a success rate of 71% to 85%. During these past few months I have compiled a cumulative success rate of nearly 78% so this strategy can be extremely effective. As always guys if you have any questions or comments please feel free to leave them below and I will try to get back to you as soon as possible!

Related articles: (learn more about the Ichimoku Cloud Strategy)

http://binaryoptionschannel.com/binary-options-ichimoku-indicator/

http://binaryoptionschannel.com/binary-options-ichimoku-cloud-strategy/

VWAP Indicator and Strategy for Binary Options

Wednesday, October 22nd, 2014

Wednesday, October 22nd, 2014 by Tim Lanoue

3_728x90

Having a solid trading strategy is imperative if you wish to succeed while trading binary options. Whether your strategy be fundamentally or technically based you must have a solid game plan in mind if you want to take on the financial markets and succeed. Today we are going to take a technical approach for taking on the financial markets and it involves the use of two binary options indicators.

These two indicators are known as the simple moving average indicator and the volume weighted average price indicator, moving forward we will cover the basics, set­up, and implementation of this simple yet highly effective trading strategy. As many of you may know by now I am quite the fan of moving average indicators due to their incredible ability to signal possible trading entries. For those of who you are not familiar with moving averages it is a technical indicator that has the main function of predicting price reversals. Now the unique characteristic about moving average indicators is that they can be set to reflect different price averages over a certain duration of days, this average is based entirely on your desire but for the sake of this strategy we will be setting our simple moving average indicator to a period of 4. Meaning that we will see the average price of the targeted asset over the last four days.

2_300_x_250

The other technical indicator that we will be using in this short­term trading strategy would be the VWAP indicator, otherwise known as the Volume Weighted Price Indicator. One of the main functions of this indicator is to predict bearish and bullish market conditions. This plays in great strengths when paired with our moving average indicator because they both predict future price reversals which is what our strategy is based upon. Setting up the VWAP indicator further more we need to set the time frame to 5 minutes. Next, it basically is adding your indicators to your charting solution and editing the moving average to the desired time period of 4. When using this strategy we want to make sure that we are using reliable assets such as low volatility currency pairs and high volume stocks. Some of these reliable assets are listed as follows: Eur/Usd, Usd/Cad, Nzd/Usd, Apple, Nike and Exxon.

Now that we have a proper set up we can focus on the more complicated part of this strategy, the implementation. Looking in the picture below you can see that we have the Eur/Usd with a time frame of 5 minutes with 10 different trades placed. Moving forward, if you couldn’t tell, our VWAP indicator line is our signal generating line, once the VWAP indicator crosses with our moving average indicator then we are signaled. If our VWAP crosses our moving average line in a downward direction then we place a short­term PUT trade with an expiry time of 3 to 10 minutes and vice versa for upward crosses. Now you can wait for a confirmation candle to appear next to the cross but it is not necessary, in all the trades placed in the picture you can see that I did not wait for a confirmation candle to appear, this still resulted in 90% in­the­money success rate.

Trading with technical indicators along with a fundamentally sound trading strategy will determine your success as a trader. The strategy described above is quite simple and offers a high success rate making it ideal for traders of all experience levels to utilize. As always guys, if you have any questions or comments please feel free to leave them below!

Visit our NEW list of Forex and Binary Options Strategies List!

Binary Options Fisher Transform Trading Strategy

Wednesday, October 15th, 2014

Wednesday, October 15th, 2014 by Tim Lanoue

Mikes_Binary_Options_Signals (1)

If you guys are fishing for a new binary options trading strategy well then I have quite the catch for you here. Today we are going to discuss a great technical indicator that should be a part of any trader’s strategy arsenal. The main indicators that we will be using with this strategy is the Fisher Transform indicator and a simple moving average indicator. Moving forward we will cover the fundamentals and complexities of these indicators and how to properly set up a high success trading strategy.

For those of you who don’t know the Fisher Transform indicator is solely a technical indicator used to predict price reversals. Furthering your knowledge, this technical indicator is known as an oscillator which means that the way this indicator works is that the value of the indicator fluctuates along face values which can be used to measure market conditions of the targeted asset. This indicator is a great indicator to use in combination with the Relative Strength Index indicator but most of all with the moving average indicator. The moving average indicator is a simple technical indicator that uses a predetermined time period to show the assets past price history which allows traders to easily predict future price reversals.

Setting up this indicator is relatively simple and really only requires the use of a charting solution in order to get started. One of my favorite charting solutions to use is www.freestockcharts.com because it is free and is wired directly into the marketplace so you see the best price values of assets. Now when it comes to picking out a good asset to trade we should use a low volatility currency pair like the Eur/Usd, Usd/Cad or Usd/Chf. High-volume stocks that can be traded with this strategy as well would be Apple, Nike, Amazon and Exxon. Selecting one of these assets now we need to change the time frame to 15 minutes on the chart and now to customize the other two indicators. Originally the Fisher Transform indicator is set to a period of 10 so we need to edit the indicator and change the period setting to 20. The simple moving average indicator needs to be set at a period of 50 which can be done by right clicking and selecting Edit Indicator.

man-fishing

Now that we have the proper set up we can wait for our signals to be generated. The signal process is quite simple and any novice trader can effectively trade with this strategy. As you can see in the picture below when our Fisher Transform line crosses our moving average line we place a trade in the direction of the cross. So if the Fisher line crosses our moving average line in a downward direction we would place a PUT trade and vice versa. Now either you can wait for a confirmation candle to appear right above the cross and if the candle is heading in the same direction of the cross then you can place that trade, however this confirmation is not needed. Without the confirmation we still won 4 out of the 5 trades so as you can see this is a solid strategy that doesn’t require confirmations. Average expiry times that one should use when using this strategy would be anywhere from 15 to 30 minutes.

Using this strategy during market hours will ensure your best chances of success but this strategy can also be used during intra-trading hours. One of the best advantages about this strategy is that it is simple enough to be used by new traders but also effective enough to be used by experienced traders. As always guys if you have any questions, comments or suggestions please feel free to leave them below and I will get back to you!

Check out how we managed to raise over $50,000 in donations in the last month and we’re still pushing to raise more donations with Mikes new Auto Trader. Checkout this video and find out more about how you can get Mike’s Free Auto Trading for a non-mandatory donation.

Get Access to Mike’s Free Auto Trader!

Classic Option Trading Strategy

Sunday, October 5th, 2014

Sunday, October 5th, 2014 by Tim Lanoue

There are so many styles of trading offered by binary option brokers that much of the time as traders we forget about the most practical style of trading, the classic style option. This was the first style of trading offered by binary option brokers and to this day many brokers still offer this style of trading so that must mean it is a profitable style of trading.

This trading strategy requires the use of three exponential moving averages set at a period of 5, 13 and 50. For those of you who are not familiar with moving averages, they are technical indicators that plot the average price level for a particular asset over a set period of days. So for example, one of our moving averages is set at a period of 5 so it is plotting the average price of our selected asset of the last 5 days. The way these moving averages cross one another oftentimes signify trading set ups and signals.

In the picture below you can see an example of how this trading strategy is set up and executed. In order for a CALL trade to set up we need our 13 exponential moving average line to cross our 5 exponential moving average line in an upward direction. The next thing we need to make sure of is that the 5 and 13 moving average lines are above the 50 exponential moving average line, if it is then we are good to place a CALL trade. In the second picture below you can see an example of how a PUT trade is set up and executed. It basically is the opposite of the CALL trade set up; we wait for our 13 EMA line to cross our 5 EMA line in a downward direction. Next we make sure that the 50 EMA line is above both the 5 and 13 EMA line and if it is then we are good to place the trade.

Classic Option 1 (1)

All trading expiry times should consist of 5-15 minutes, it is difficult to say exactly when because Classic Options often expiry at the end of a quarter, half or whole hour. As long as you stay within the 5 to 15 minute expiry time frame you should see a successful investment payout. Also, when trading with this strategy we want to make sure that the time frame that we are watching our asset is set to 15 minutes. Lastly, I found this strategy to have the best success rates with low volatility currency pairs. A few popular low volatility currency pairs that you could use this strategy with would be the Eur/Usd, Usd/Chf and Usd/Cad.

Checkout Mike’s New Auto Trader! Register FREE!

Binary options is the most profitable and easiest style of online trading provided to online traders and will only continue to grow in popularity. Having a reliable trading strategy like the one given above is key for your success. Make sure you always have a game plan and stick around for more articles to come! If you have any questions, comments or suggestions please feel free to leave them below and I will get back to you as soon as possible!

Decision Point Price Momentum Oscillator

Thursday, September 18th, 2014

Thursday, September 18th, 2014 by Sjay Bell

I am back again with another review of one of my favorite indicators to utilize when trading Binary Options. That indicator is called the Decision Point Price Momentum Oscillator. It is great for verifying whether a trend is certain to reverse. And, it is so simple to interpret and utilize to your advantage. I will explain what exactly it is, and how it is calculated. Towards the end, I will show you how we as Binary Options traders can utilize this indicator to our advantage. I can’t wait to tell you guys more about this amazing indicator. So, without further ado, let’s get to it!

The Decision Point Price Momentum Oscillator (PMO) is an oscillator focused around a Rate of Change (ROC) estimation that is smoothed twice with EMA’s that utilize a custom smoothing methodology. Since the PMO is standardized, it can additionally be utilized as a relative strength tool. Stocks can in this way be positioned by their PMO value as an articulation of relative strength.

The Decision Point Price Momentum Oscillator is determined by taking a one period rate of change and smoothing it with two custom smoothing capacities. The custom smoothing capacities are fundamentally the same to Exponential Moving Averages. However, as opposed to adding one to the time period setting to make the smoothing multiplier, the smoothing capacities simply utilizes the period independent from anything else.

The PMO sways in connection to a zero line. Typically, the PMO course demonstrates if quality is expanding or diminishing, and the steepness of the trend edge shows the force behind the move. Since this is an inward degree estimation (versus outside, in the same way as the standard relative strength computation, which isolates one cost by an alternate price index), it gives back a come about that is standardized and might be contrasted with the PMO consequence of another security or index. In this manner, traders can rank a rundown of securities or records in relative strength request basically by utilizing their PMO values. The rundown does not need to be homogeneous. The PMO might be utilized to rank market indexes, stocks and mutual funds in the same rundown.

An indicator that looks very much alike to the PMO is the MACD (Moving Average Convergence-Divergence) indicator developed by Gerald Appel. The fundamental distinction between the PMO and MACD is without a doubt the estimation of each indicator. The MACD is focused around moving average computations, and one MACD perusing bears no relationship at all to an alternate; though the PMO, as clarified above, is an inward degree.

The PMO can help figure out whether a price index is overbought or oversold. The typical PMO range for this index is from about +2.5 (overbought) to -2.5 (oversold), and, when the PMO approaches or breaks those cutoff points, it regularly indicates a price inversion. At the point when the PMO alters course at or past the extremes of its typical extent, it is a decently dependable evidence that a moderate term alter in price direction is occurring.

As a momentum indicator, the PMO demonstrates the course and speed of price development. In this respect it is similar to other momentum indicators. Additional ending patterns normally are joined by regular PMO course changes. PMO bottoms and tops recommend that price momentum has moved course, so they can give early flags to price tops and bottoms. They are typically more dependable when the PMO is in overbought or oversold territory.

How can Binary Options traders utilize this indicator?

This technique is so simple to follow, yet so effective. For a call option, you want to wait until the PMO as well as the signal line began to reverse upward in a well-defined uptrend. It’s the same for a put option. Just allow the PMO and signal line to reverse into a downward move while there is a well-defined downtrend. Both call and put option scenarios are demonstrated below:

Capturegh

The Decision Point Price Momentum Oscillator (PMO) can be utilized as both a measure of relative strength, momentum, and overbought/oversold conditions. It can additionally be utilized to focus price inversions utilizing bull and bear crossovers. If followed correctly and under the right market conditions, this indicator can improve you’re trading results drastically. If you guys have any questions or concerns, feel free to ask and I will be more than happy to address them. I hope you all found this very helpful. Be sure to check out our articles for more awesome information. Cheers!

The Center of Gravity Strategy for Binary Options!

Saturday, September 6th, 2014

Saturday, September 6th, 2014 by Sjay Bell

Mikes_Binary_Options_Signals (1)

Today I am very excited to introduce a new strategy that utilizes The Center of Gravity indicator. This strategy is so awesome and has shown to provide a substantial amount of success for your everyday novice traders. This indicator has been one of my personal favorites for a long time, and has yet to disappoint me. I’m very eager to share the Center of Gravity strategy with you guys. Without further ado, I will go more in-depth into what exactly the Center of Gravity is, and how you can utilize it to your advantage when trading Binary Options.

 

What exactly is The Center of Gravity Indicator?

Basically, The Center of Gravity is an oscillator that has the ability to detect reversals in the market. When applied to a chart, it displays multiple bands bordering the highs and lows of the Price Action. I guess that’s why it’s called “The Center of Gravity”. Price fluctuates between these bands. But, when price surpasses these bands, it’s a signal of a continuing up or down trend. The price can change unexpectedly however will return – soon or late – to its inside line. At the point when the price moves in the red zone, the security is overbought and a descending restorative move is normal in most circumstances. At the point when moving into the green line, the security is oversold and an upturn is plausible.

 

Here are 3 zones you should keep in mind:

  • The Neutral zone, in the center zone between the red and the green line. At the point when the Timing indicator is in this zone, one ought to rather not open any positions. Be patient and hold up.
  • The Red zone above, circumscribed by the 2 red lines and the Green zone underneath, flanked by the 2 green lines are passageway zones. On the off-chance that a trader has a long position and the Timing indicator goes into the red zone, the position is to be sold. On the off-chance that the trader is short on a trade and the Timing indicator goes into the green zone, the short position could be closed.
  • The Extreme zones are the zones over the upper red line or beneath the lower green line. These zones are great entrance focuses. If the Timing indicator is over the upper red line, then opening a short position is to be considered. Should the Timing indicator be underneath the lower green zone, then the security is to be purchased.

center-of-gravity1

The Center of Gravity Binary Options Strategy!

When tested with Binary Options, this strategy has shown to be most profitable on 5 minute charts, and by taking 10 as well as 15 minute trades. There are many ways to utilize this indicator when trading Binary Options. But, I found that the Center of Gravity produces more reliable signals when combined with a couple other indicators. These indicators include the Dynamic RSI, and the Timing indicator. These two indicators combined with the Center of Gravity have shown to provide some extremely good call/put signals.

Enter a call option when:

– The Dynamic RSI exits then re-enters the lower bands.

– The Center of Gravity is lingering in the green zone.

– The Timing is underneath the green zone.

Enter a put option when:

– The Dynamic RSI exits them re-enters the lower bands.

– The Center of Gravity is lingering in the red zone.

– The Timing is higher than then red zone.

 

Here is an example of the perfect setup for a put option:

Capturegh

Find more Binary Options Strategies on BinaryoptionsChannel.com

I can’t stress enough about how awesome this indicator is. The above technique is just one of many ways anybody can utilize this indicator to make money with Binary Options. It has proven to me and many others that it is reliable and can be incorporated into your daily trading routine. I also found that the Center of Gravity is a great alternative to Bollinger Bands. It’s great for helping you identify support and resistance in trending markets. If you wanted to, you can probably trade with this indicator alone. All you would have to do is allow price to rise to the highest and lowest bands before making your call/put options. But, I highly recommend utilizing the assistance of other indicators to ensure the best signals possible. I hope you all found this information beneficial. Checkout our other articles for more useful information. Cheers!

Advance-Decline Line Strategy

Saturday, August 23rd, 2014

Saturday, August 23rd, 2014 by Sjay Bell

The Advance-Decline Line (AD Line) is a range indicator focused on Net Advances, which is the amount of proceeding stocks less the number of decreasing stocks. Net Advances are definite when advances surpass decreases and negative when decreases surpass advances. The AD Line is an accumulative calculation of Net Advances. It increases when Net Advances are definite and decreases when Net Advances are negative. Ordinarily, the advance-decline data comes from the NYSE or NASDAQ on an everyday base. Traders can use the AD Line for the index and contrast it to the activity of the authentic index. The AD Line is supposed to ensure a cost increase or decrease with indistinguishable motions. Bullish or bearish differences in the AD Line indicate alter in involvement that could signal a price reversal.

Advance-Decline-Line

The confirmed reading of the AD Line relies on the kickoff point for the computation. The AD Line has to lead off somewhere so that the first computation is primarily Net Advances for an exclusive point. The following computation is the AD Line reading for the foregoing period plus Net Advances for the present period. The AD Line calculates the level of involvement in an advance or a fall. An AD Line that elevates and achieves new highs along with the underlying index demonstrates powerful involvement that is bullish. An AD Line that runs out to maintain step with the underlying index and assure the new highs indicates diminishing involvement. Market strength is threatened when insufficient stocks take part in an advance. Diminishing involvement is frequently associated with a bearish divergence between the AD Line and the underlying index. On the flip side, the market is seen as frail when the AD Line drops to new lows along with the underlying index. A bullish divergence occurs when the AD Line fails to achieve a lower low along with the index. This indicates insufficient stocks are diminishing and the diminution in the index may be coming to an end.

The advance-decline data may carry some traits that traders should be mindful of. Foremost, there is a long-term sinking influence in the Nasdaq AD Line. This is due to that fact that the NASDAQ listing needs is not as stern as NYSE listing needs. The NASDAQ contains upstarts in sectors fluctuating from biotech to technology to alternative energy. There may be an enormous upside probability, but there is also the danger of failure. A lot NASDAQ stocks are vulnerable to removal. Companies that fail are deleted from the index and substituted, but their tough impact on Net Advances stays.

Advance-Decline Line Strategy Conclusion!

The AD Line is a range indicator that indicates market involvement. A broad advance indicates the huge bulk of stocks are partaking and this will drive the AD Line to elevate sharply higher. A small advance indicates little involvement that will drive the AD Line to proceed a little higher. Declines can likewise be broad or narrow. A wide-based advance indicates underlying strength that elevates most boats. This is bullish. A small advance indicates a comparatively mixed market that is most suitable or best qualified. Slenderness in a development or decay sets up the divergence signals. An advance with slender support is unrealistic to stay aware of the underlying index and a bearish divergence will form. Correspondingly, a decrease with limited interest is unrealistic to stay aware of the index and a bullish divergence will form. These divergences can help traders recognize vital inversions in the market. I hope you all found this information beneficial. Checkout our other articles for more useful information. Cheers!

 

Learn more about Strategies and Indicators for short-term binary options trading on the BinaryoptionsChannel.com