Trading signals for binary options "STOCH"

21 October 2015

This strategy was sent to us by Yuri from Ufa. The author of the previous articles on the strategy for high profit binary options trading "RSI-Trend".

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One of the main questions that many beginning traders ask themselves - where to get trading signals that would really bring profit? There are several ways! You can subscribe to the signals provided by various specialists. But there are no guarantees of their accuracy and qualification of analysts who provide them.

The second way is a little more complicated, but it gives confidence in the correct signals that can be used to make a profit. It is to create them yourself. How to do it correctly?

STOCH" trading signals development

For more than 50 years, the financial market has used to predict price movements Stochastic indicator. Its high popularity is due to the incredible accuracy of the signals provided for the execution of contracts. It is these signals that stock trading professionals turn into multimillion-dollar profits and huge fortunes. Neither can anyone forbid us to use this highly accurate indicator to develop our own binary options trading strategy. Along with this, we will be fully confident in their accuracy and correctness, as we will receive them ourselves using our own trading system.

Before we move on to the Stochastic trading system, let's choose a broker to trade on the options market. First of all, we need a reliable company where we can take advantage of such trading conditions and services:

1. no slippage when placing orders (makes it possible to place contracts in exactly the right places at the best prices)

2. Possibility to trade with the smallest volumes - from 1 USD (reduces losses at the difficult parts of the market and reduces the load on the trading capital)

Normal size of the quotation chart for convenient tracking of trading processes and visualization of levels of executed trades on the chart (this enables the use of additional systems to increase the efficiency of trading)

As an example of a brokerage company that fully meets the necessary requirements we can consider a broker Binomo.

On the terminal of this company we will conclude contracts with binary options, and to get signals of the strategy we will take a live chart of quotations on the service tradingview.com, where we will install our technical indicator. To set up the workspace it is necessary to:

1. open the site tradingview.com and on the main page, enter in the search engine line name of the trading asset that suits you best for option trading (a good example of the currency pair EUR / USD):

tradingview.com for signals

2. After that the quotes chart will appear on the screen. Now set the time frame M1 (1 minute):

Set the time frame M1

 

3. Now we put two Stochastic indicators on the chart

Put two Stochastic indicators on the chart

4. Under the chart will appear two windows of our technical indicator Stochastic. They also need to be configured. For one, we set the construction parameters to 21,9,9; for the other, to 9,3,3:

2 Stochastic technical indicator windows

Now the last moment and move on to the signals of the strategy. For the convenience of analysis and trading, we put the Binomo window and the technical chart next to each other:

Binomo window and technical chart nearby

 

STOCH trading and trading signals

Up trading signal:

1. Crossing of the signal muvin of the Stochastic indicator (21,9,9) lower level of oversold upward

2. On the Stochastic indicator (9,3,3) signal lines have crossed upwards

Up trading signal

 

Having identified such signals on the technical chart, go to the terminal Binomo and open the UP position

DOWN trading signal:

1. Crossing of the signal muvin of the Stochastic indicator (21,9,9) of the upper overbought level downwards

2. On the Stochastic indicator (9,3,3) signal lines have crossed downwards

DOWN trading signal

Having identified such signals on the technical chart, go to the terminal Binomo and open the DOWN position.

These fairly simple signals from the two Stochastic indicators allow you to make at least 70% positions, which will bring income.

Type of options and expiry dates for trades on trading signals "STOCH"

The optimal type of options for trading on STOCH system signals are simple binary options, available on the terminal Binomo expiration time range of 15 - 30 minutes.

Money Management

The productivity of the "STOCH" system is quite high, within an hour there are 2-3 trading signals that can be used to make a profit. But to minimize trading risks, you need to use no more than 2% of your trading capital. If the size of the deposit does not allow following such rules of money management, then use for transactions the minimum trading lots, which the broker has Binomo start from 1 USD. Thus, you can trade on the system "STOCH" even on a deposit of 10 dollars!

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