«Multi-Stochastic»: fast profit on classic indicators

We present another strategy on how to make money on binary options using standard technical analysis indicators. It brings stable profits on short - and medium-term transactions and is available even to beginners.

Strategy characteristics

Type:

Trend.

Timeframe:

Any in the range M1-M5. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal an increasing.

Trading asset:

Any currency pair. The main requirement is a fixed (2-3 points) spread and no hidden fees.

Trading time:

All Forex trading sessions.

Percentage premium option:

Not less than 70-75%.

Used indicators

The strategy uses two indicators:

  • Exponentials (EMA) moving averages with periods of 14. Trend indicators by which we determine the opening point of the option. The strategy is not intended for trading during flat periods.
  • Two Stochastic with periods of 5 (fast) and 30 (slow) − the oscillator will assess the current balance between buyers and sellers: the predictor above level 80 − the end of the uptrend (overbought), below 20 − the end of the downward (oversold).

After installing the tools, the terminal's working window looks like this:

Binary options signals:

  • CALL-option. The price breaks through from the bottom-up Moving Average. Both Stochastic is directed up or out of the oversold zone
  • PUT option. Reverse conditions: break down from top-bottom Moving Average, Stochastic is out of the overbought zone and moving up.

Open a trade on the next candle after binary signals. Time of expiration of options has to be not less than 5-7 minutes even if as a working timeframe it is chosen of minute, as in our video.

Recommendations about use … 

  • Even on the minute timeframe, Stochastic rarely goes into the extreme zones and you can miss a lot of good deals. If price and Stochastic start moving in one direction − you can open an option!
  • During the publication of important fundamental news and statistics, we do not open options 30 minutes before the news and 30 minutes after the publication; cautious traders can close current deals. To control the events, we use the economic calendar included in the all popular binary trading platform!
  • Expiration term. Look to steer a middle course: too short (1-2 minutes) and too long (10-15 minutes) option life is considered dangerous. In the first case, the price risks «not having time» to go in the right direction - we get a loss. In the second, the market will have time to turn around, which again gives a negative result.

Intraday strategy «Multi-Stochastic» represents a rather reliable system of a conservative scalping for trade in the stable market. Parameters of trade tools can be changed according to the current volatility. Once again, we remind you that most profitable binary options signals will only be on trend areas, during the flat periods we remain out of the market!

Automatic trading according to the «Multi-Stochastic» strategy is possible: several versions of binary option bot can be found on the network, but, like on any scalping system, it is better to trade manually using this scheme. This will allow you to more effectively tune the system to market changes, and the multicurrency properties of the strategy guarantee you a stable profit every day.