EMA 3 Binary Options Trading Strategy
The EMA 3 binary options strategy is a trend following system. This means that you have to trade in the direction of the trend. This trading technique called “fly” and is a mix between “Momo” and “scalping”. It is based on the pulse of the market. You can use this for intraday trading. The timeframe used for this method is 5 minutes and 15 minutes with an expiry time with 3 candles. This works on forex, indices, and commodities.
Metatrader Indicators:
- Bollinger Bands (indicator that comes by default in Metatrader, I use 10 periods);
- RSI Color (Relative Strength Index 10 periods);
- Gann Hilo Activator V2 (called testing) ( to show the trend change threshold);
- MT4 fractals default,
- Butterfly” (a type ZigZag) that tells me when the price ends is very overbought or oversold, and I expect a breakthrough;
- MACD (5, 13, 1);
- Gann Hilo Activator V2 (called testing) is use for confirmation.
Call Entry:
- The EMA 3 periods must be located below the EMA 10 (midline of the Bollinger).
- The MACD and RSI are in negative territory. MACD is below zero and RSI is less than 0.
- The price and EMA 3 must cross above 10-periods (the center line of the Bollinger Bands).
- The MACD is about to cross the area of the positive , the RSI is cross the line 50 from the bottom (RSI >0) .
Put Entry:
- The EMA 3 periods must be located above the EMA 10 (midline of the Bollinger)
- The MACD and RSI are in negative territory. MACD is above zero and RSI > 0.
- The price and the EMA 3 must cross below 10 periods (the center line of the Bollinger Bands).
- The MACD is about to cross the area of the negative , the RSI is cross the line 50 from the top (RSI<0).
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