Binary Options Strategy for 5 Minutes

Modern services offer traders a wide range of functionality for effective market analysis. If earlier professional platforms for tehanalysis were available to a limited number of users, now everyone can use them. The most popular of them is TradingView. Many thousands of indicators and auxiliary tools are available to traders. It is also possible to create your own tools by programming in a simple scripting language. It is a real revolution in the field of online trading.

In this article we will look at binary options strategywhich will allow trade 5-minute contracts at PocketOption platform. You can also use other trading platformsFor example, Stars Binary or Intrade.Barbut it is this company that has proven to be the best. We emphasize that the analysis itself will be carried out on a third-party service Live graphics from the TradingView portal. The basic functionality, which satisfies the needs of most traders, is available without a subscription – for free.

How the strategy works

The system is based on two indicators – a smooth moving average and a wave market analysis tool from the developer LazyBear. The combined use of such different tools allows wireThe “Waves” strategy uses two indicators with very different mathematical formulas. The “Waves” strategy uses two indicators with very different mathematical formulas.

The wave theory of price formation in the market is the main one. It explains many phenomena which traders observe on the chart. If we briefly outline the essence, it will sound as follows. The market is a continuous process where the periods of “ebb and flow” are constantly alternating – price falling and rising. The trader’s task is to learn to recognize these waves and understand the whole picture of what is happening. This will make it possible to make effective forecasts by following the known pattern of price formation.

A brief overview of the indicators used:

• Smoothed Moving Average – it is the simplest indicator of the category of moving averages (read the review of all variations of moving averages on this site – http://www.investmagnates.com/indikator-srednyaya-skolzyashhaya/). This type of MA has a pure averaging formula. To put it simply, its position on the chart is determined by the averaged price value over the period specified in the settings. However, there is a considerable potential in its simplicity. Considering the inertia of the market and its “waves”, this indicator allows recognizing the subtle moment of change in the movement direction.
• WaveTrend with Crosses – oscillatorwhich analyzes the market from several points of view. The calculation formula is quite complicated. However, it is easy to use the tool in practice. The signals are presented in a classical form for oscillators – the points of intersection of two curves. For clarity, they are visually underlined on the chart.

Setting up the platform and the terminal

First, in one tab of the browser we open the Live Chart (open on our website) from TradingView (open on https://ru.tradingview.com), and in the second one, the Pocket Option terminal (open at pocketoption.com). At both sites you have to choose one trading asset, time interval (1 minute) and the candlestick type of charting.

Next, open the window for adding an indicator and one by one paste the following names into the search line: “Smoothed Moving Average” and then “WaveTrend with Crosses [LazyBear]”. You should copy it without quotation marks. You can also find them manually in the appropriate sections of the catalog, as indicated by the arrows in the screenshot above.

To facilitate the process of filtering false signals, it is recommended to manually add two levels to the chart window – at “25” and “-25”. For this purpose the graphical tool “Horizontal line“.

Trading signals by system

It is necessary to enter the market after the lines of WaveTrend with Crosses are crossed. It should be combined with a breakdown of a simple moving average on the candlestick chart. However, there is a number of nuances.

• A signal to go up – the appearance of a point below the manually added “-25” level, as well as the break of the upward MA line from below.
• Down signal – the formation of a point above the “25” level, as well as the breakdown of the MA curve of the descending candle.

In the picture above are marked signals that if you choose 4-5 minute trades will allow you to make a profit. False signals are also marked there. From a fundamental point of view, they are due to a low level of market activity. Therefore, they should be ignored.

Immediately after the signal appears on the TradingView platform you need to go to the adjacent tab with the terminal Binomo (bonus 100% to deposit by promo code REVIEWEEK100 – Activate) to open a trade.

Conclusion

In conclusion, let us mention a few key points for traders to consider when trading. Firstly, it is necessary to control the financial risks. Secondly, it is necessary to monitor the market volatility. The optimal time to trade European currency pairs is from 4 to 8 pm. Thirdly, control the expiry time of transactions. They should be 4-6 minutes. But the PocketOption platform (Open a demo account) resets this period to the minimum by default over time. This should be taken into account.