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Moving averages in binary options
Moving averages is one of the most popular technical analysis tools. They allow you to not only objectively identify the market condition (trend/flat), but also to filter the transactions by rejecting all options against the current trend.
To construct moving averages for binary options is very easy, if the terminal of Your broker offers indicators. However, not all brokerage companies rush to add such possibility to its clients that is often associated with the feature of the platform on which the terminal was created.
On the example of two brokerage companies will show you how to place moving averages on the charts binary options and their presence is good for you.
Support indicators as the coordinator of the 24option broker (accounts $200 or the equivalent in another currency, for example in rubles). Indicators are available and importantly, the company certified ($10), among which there are moving average.
First, we consider the indicator in Binome:
For installation of the indicator, click on the appropriate icon from the options select "moving average":
In the settings window it is possible to change several important settings:
• line period (the time period in which values will be calculated);
• type of moving (there are different principles, for example, exponential or weighted moving average);
The last adjustable parameter is responsible only for what would be visually perceived average line and does not affect the calculation principles. The company is directly responsible for how rapidly will react in line with each change of the value of the market price.
As mentioned above, the indicator allows you to discard the signals for the purchase binary options that will become reasons for opening trades against the trend. This filtering function reduces the number of losing trades when trading in a trending market.
In addition, if you choose to work volatile assets like EUR/USD, the running average will help to find the optimal moment to buy a binary option on the direction of the trend. Please note the illustration below, which shows how the market for a long time growing up, and then there was a change in the trend, which helped to find the indicator.
Now I would like to show you how to configure a trading space broker 24option to use moving averages to binary options through this company. To begin with, we will need to open an enlarged chart for technical analysis:
In the resulting window, select studies, and in the menu we will be interested in the bottom line of the system manager.
A window appears with the indicators where we can choose any program to configure their own way, to combine in the graph. In this case we will be interested in MA, which corresponds to the moving average (MA traders also called "maskani").
The settings of this program are nothing new we are not surprised, you can choose the color and specify the period. Type the middle line in this case is chosen so as Binome. Each individual principle of the calculation corresponds to the name of indicator like MA, EMA and so on. In other words, in order to use the exponential moving average we need to choose EMA.
If you set the indicator to the chart, we see the same Central line, calculated for the in settings the period. However, to focus on the principles of its use has no sense, as it is exactly the same moving average, which was given as an example above, when we were talking about the platform importantly, the company.
If to speak about the possibility of using technical analysis the 24option platform is much more advanced. On the other hand, what would you start trading the leader of binary options market, you need at least $200 (or equivalent in hryvnias or euros).
Moving averages is quite simple in terms of device tools of speculators. At the same time, to produce the numerous other indicators and trading strategies. On the binary options market understanding the direction and trend strength (determined according to the degree of the slope of the line to the horizon) allows to enter the market with the trend.
|Category: Binary options | Added by: (07.11.2017)