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How to set up Three Moving Averages strategy?

Since one of the main conditions for using this binary options trading strategy is the availability of medium-term trend, traders must always ensure that either upward or downward movement exists on the market.
When using the medium-term Three Moving averages trading strategy the volume should not exceed 4 percent of the deposit. As mentioned above, an indicator used in this system is a simple moving average.The timeframe may be one day or more. Moving averages must have different periods. The shortest one is 4 and colored blue. Curve with a period of 8 colored in red. Finally, the longest period of 40 and the curve is colored in green.Making this strategy easer, traders can apply a trend line on the chart, or at least visually mark the extremes in order to understand, in what direction the current movement is going. The most important thing that you need to determine is the direction of the current trend.You can use the longest moving average with a period of 40 (shown in green at the example). If the price is under the moving average, the market is experiencing a downward movement. In cases when the price is above the moving average, there is an upward movement.

Buying Call and Put options with Moving Average crossing

In order to determine the possibility of binary options buying, it is necessary to look at all moving average curves. When they are deployed in the same direction, we recommend you to prepare for trading. It is not necessary to check the position of the moving averages on the chart every five minutes.Check it once a day to see the situation and make appropriate conclusions.

Three Moving Averages
If the longer blue moving average crosses the shorter red from top to bottom and the green moving average is also facing down, you can buy a Put binary option.
Three Moving Averages binary trading strategy
Three Moving Averages binary trading strategy

It is also recommended to do the same but in the opposite direction when the blue moving average crosses the red one from the bottom up. In this case it is recommended to buy a Call option, as an upward movement begins.At the same time, green moving average with a period of 40 should be directed upwards.

This trading strategy is perfect for those who do not like to take risks and strongly prefer a measured trade. A huge advantage of using such trading strategy is that the trader has a much better chance to make a profit. Although the final yield is lower than, for example, any of the intraday strategies.

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