Seconds Strategy “Vision”

Published:29 January 2019 Updated:8 May 2024

Trade strategy is a system of market analysis consisting of a certain combination of binary options indicators. The proper selection of instruments is the key to success – they must be combined with each other, overlapping their own disadvantages. If the combination uses two indicators that are almost identical in terms of signals, then there will be little point in it. In this article we will consider a second strategy “Vision” suitable for trading with a binary options broker PocketOption. The system is based on 3 indicators – a trend indicator (Moving Average), CCI oscillator and pulse (Momentum).

A brief overview of the indicators

Moving Average – basic and practically the only indicator technical analysis in the midst of binary options trading. The principle of averaging is used to some extent in all instruments, including oscillators. Such a great variety in the form of thousands of various indicators is achieved by modernizing the averaging formula. In most cases, a mathematically simple formula for calculation of the arithmetic mean is updated almost beyond recognition. Such an approach makes it possible to achieve the most incredible results.

There are several dozen popular types Moving averages, the most popular are 10 variants – all of which are presented in the terminal. The “Vision” strategy uses the Time Series Moving Average. The TSMA formula differs from other moving averages in the presence of a binding to time, which is reflected in the name of the tool. Without going into details, we can note that in the averaging formula, the closest price bar has a higher priority than the subsequent ones.

Momentum – impulse indicator, which shows the speed of price change. The beginning of a strongly pronounced trends leads to an increase in volatility. The zero value is in the middle of the window near the midline. The upward deviation of the curve indicates strengthening of the uptrend impulses, the downward deviation signals a downtrend.

CCI – an oscillator developed about 40 years ago for forecasting prices on commodity exchanges. The formula takes into account the deviation of the actual asset price from the average statistical value obtained by averaging. Considering the regularities of price formation, this indicator allows the trader to recognize the zones of unstable equilibrium when the market is getting ready to turn around.

Configuring the trading terminal

The value of the signals of the 3 indicators used is equal. Therefore, you should enter the market only if all instruments show the same picture. To do this, they need to be set up in a convenient way, so that you can instantly assess the situation in the market. Trading on the second timeframes requires a good reaction speed. Optimal values expirations of transactions for the “Vision” strategy is 60 seconds. This is the minimum interval in the Pocket Option terminal (site). The timeframe should be 5 seconds. Despite such small actual timeframes, one contract takes 10-15 candles. This increases the accuracy of signals.

Setting up indicators:

  • Momentum: interval – 20;
  • Moving Average: interval – 50, type – time series, fill color – any contrast;
  • CCI: interval – 20, default zone level settings.

PocketOption has an adaptive terminal, which allows you to adjust the scale of the chart and indicators. This is done using the mouse wheel, and fine adjustment of parameters is done by scrolling in the horizontal timeline and vertical one, where the quotes are indicated. The chart and indicators should be set up in such a way that it is easy to track overbought and oversold entry points.

Trading signals by strategy

The trader’s main attention should be directed to the position of the TSMA. When there is a crossing with the price formations, the signals of the other 2 indicators should be evaluated. If the position of the signal lines allows entry into the market, one should buy a contract in the appropriate direction – “up” or “down”.

A signal to go up – price bars cross the TSMA and begin to build above the line. Momentum crosses the dividing line and the CCI enters an overbought condition. It is also acceptable if the Commodity Channel Index crosses the midpoint of N/A. The main thing is that all three indicators show the beginning of an uptrend – confidently moving up.

Down signal – candles cross the TSMA and begin to build below the line. Confirmation of the signal is a downward movement on Momentum and CCI. If the curves of both indicators are in the oversold area (below the midline), then market entry by the Moving Average signal is allowed.

The signal divergence is acceptable if it fits within 2-5 candles. If the divergence in time is greater, the percentage of passability of the signal decreases. Expressed trends, as a rule, lead to almost simultaneous triggering of all 3 indicators. Such signals are most accurate.

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