Binary Options Trading Strategies

Double EMA Channel Binary Options Strategy

November 12, 2016

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Double EMA Channel Binary Options Strategy

The double EMA channel is a strategy that also uses RSI and stochastic indicators. This system can be applied to two binary options strategy which is the one touch and the high /low.

The double EMA channel works on forex, futures, stocks and CFD markets. This is applicable to 4-hours or daily timeframe.

On a 4-hour chart, the binary options one touch expire 8-max 12 bars or 2 days, and with the daily chart, this binary option one touch expires max of 4-6 days.

MT4 Indicators:

Trade on daily chart (swing trading forex strategy)
5 EMA channel (applied to the close and add levels 50, -50);
10 EMA channel (applied to the close and add levels 50, -50);
Stochastic indicator (11,3,3);
RSI indicator (14);
Fibonacci Retracement indicator (XIT_FIBS)

Call Entry:

The 5 EMA channel must cross above the 10 EMA Channel and both Stochastic lines are heading up (do not enter if the stochastic lines are already in the overbought territory)
RSI must be greater than 50.

Put Entry:

The 5 EMA channel must cross below the 10 EMA channel and both stochastic lines are heading down AND (do not enter if the stochastic lines are already in oversold territory)
RSI must be less than 50.

Possible Exit On Touch are the first or second two Fibonacci Retracement indicator levels.