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.