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EMA on the binary options market
Indicators are used in various financial markets, moreover, to perform various tasks. It can be algorithms to aid in finding the entry point of the program, allowing to determine the current trend in the market and so on.
Today I will tell you more about the famous varieties of moving averages, called EMA for binary options. However, the device indicator does not differ from the same EMA other financial markets.
Exponential Moving Average (exponential average) is calculated over a period that can be changed in the program settings. This is a very convenient tool to analyze the market condition and to trade in the trend direction.
EMA in the binary options brokers
Since not all brokerage company in the binary options market offer their clients signals, EMA also need another look. Will make it easier, I will list a few large brokers, who have in their arsenals Exponential Moving Average:
• Olymp Trade
• Importantly, the company
The most affordable companies with the Arsenal of tools EMA is importantly, the company and Olymp Trade (from $10). Use the platform Binamo. To select the indicator you would need to press a special button located on the chart in the dashboard:
Next we will be offered several options of indicators from which to choose "Moving average". In the new window, we propose to choose the type of the middle line (need to change to the EMA) and period are variables that will affect the calculations of the indicator.
After installation on the chart binary options EMA indicator, we see a curved line, moving the market. Try to change the value of a variable period and see how it will affect the behavior of the middle line. So it will be possible to do with EMA very mobile curve that will respond to the slightest changes in market prices, or Vice versa, "zagrabiti" value, from which the indicator will be quite inert.
Application EMA trade binary options
Fast mA line, now moving on the price, most often is used to find entry points into the market. In this case the signal to buy the call option will be the price crossing the line. For example, if the market breaks the EMA downward, it is possible to buy an option, "Below", and if from the bottom up, "Higher."
Of course, to use this algorithm in this way is possible only in volatile instruments that have a long trend movements. In the flat operations of this kind may become a cause of increasing losses.
The main application EMA binary market is to identify trends. In this case, the period is changed, the line begins less sensitive to changes in market prices, slope indicator becomes clear whether there is now the trend in the graph and if so, how strong (the slope of the line):
For example, a strategy is designed to trade only in the trend direction, include an indicator of the midline for analysis. If EMA will be directed almost horizontally, it will be a signal for the trader, the market is flat. Thanks to the exponential moving average line, we can quickly understand what is happening in the market.
The illustration above shows that the indicator line has a strong upward inclination. Having made the decision to buy binary options only in the direction of the trend, we reject the option agreements of the type "Below." It turns out that EMA on the binary options market has played the role of a filter, protecting us from the transactions against the trend.
As you can see, the EMA is a very useful algorithm, which is simple to arrange and allows you to constantly see average market values. This indicator very popular among traders and is often a part of trend-following trading strategies.
|Category: Binary options | Added by: (07.11.2017)