Options trading strategy: a new trend

Option trading strategy: The new trend has proven itself among beginner traders in the world of binary trading.

Option trading due to the algorithms of some technical indicators becomes a very simple process leading to a good income. In this article, we will consider the operation of such an indicator strategy as New Trend.

According to statistics, such a trading technique is capable of giving at least 75 percent of positive trading positions, moreover, without requiring any special knowledge of stock trading and experience in trading options on the stock exchange.

Binary options trading with an indicator strategy: a new trend

In the New Trend trading tactics, two classic technical indicators are used for asset price analysis - MACD and Moving Average.

To use these trading tools for market analysis, you need to use a trading platform with an indicator set.

We will consider the example of a trading terminal here this broker, which is currently considered the most popular among beginners or because of its simplicity and convenience in trading.

• In addition, this exchange company offers all new customers free signals on ACTION! Hurry up to use!

So let's move on to strategy. First of all, we install an indicator template of the trading technique on the quote chart.

Setting indicators

To do this, we use the classic technical indicator MACD and the moving average, where we change the construction period to 100 in the settings. As a result, the following trading chart of the exchange asset used for binary trading should come out:

With this combination of technical indicators, it is possible to clearly determine the price deviation from the average values, as well as the direction of the trend and the zones in which the trend fluctuations reverse.

As a result, the technique creates very accurate trading signals.

How to recognize signals?

Signal to buy an up option (CALL):

1. The crossing of the technical indicator "Moving Average" from the bottom up by the quotes of the financial asset;

2. The histogram of the MACD technical indicator begins to grow above the axial line, and the moving averages of the oscillator cross in the upward direction and diverge from each other.

Signal to buy a short option (PUT):

1. The crossing of the technical indicator "Moving Average" from top to bottom by the quotes of the financial asset;

2. The histogram of the MACD technical indicator begins to decline below the axial line, and the moving averages of the oscillator cross in the lower direction and diverge from each other.

Although the form of identification of trading signals is very simple, yet this method of binary trading contributes to obtaining excellent trading results.

According to statistics, approximately 75 percent of transactions made are profitable. As a result, a positive trend contributes to a high dynamics of deposit growth. Even novice private traders can understand the trading processes using this method.

Expiry dates

Taking into account the period of construction of the moving average and the fact that with such parameters the technical indicator helps to determine the trend direction in the medium term, for binary trading, you can set the expiration time from 1 to 15 minutes.

Such parameters contribute to the independent regulation of market activity by the trader and the frequency of execution of transactions.

Capital Management

This trading technique works stably in almost any situation on the market. This allows you to use larger trading lot sizes for trading.

So, for example, this broker you can start trading at a rate of five dollars when replenishing a deposit in the amount of one hundred dollars.

For those who have large amounts of money on their deposit account, the rates can be made more significant, but still you should not exceed five percent of the total amount of the deposit at the conclusion of each transaction.

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