PUT option The candle definitely crosses from the top the SMA Awesome Oscillator indicates red colour The expiration period is 25 minutes, so 5 consecutive candles on the M5 chart. Leave us a comment! Error, group does not exist! Check your syntax! ID: 3. RELATED ARTICLES MORE FROM AUTHOR. Gold may cheapen this week — there are fundamental and technical reasons.

GOLD- Central Banks buy more and more. GBPCHF — will it return to the main downward trend? GOLD and Yen will get stronger — FED rate decision on Wednesday. GOLD in a correction, third time lucky? USDCAD — bearish engulfing and inside bar on the top of the year.

USDJPY — bearish engulfing pattern on H4. GOLD in a correction, bullish engulfing on daily chart. EURUSD — slight signs of optimism before the European Central Bank rate decision on 8th of September.

Why does the investment industry lack transparency and how can this be solved? EURNZD day before the RBNZ interest rate decision. This Wednesday can be crucial for SP index. Will GOLD shine again? The FED week. The Comparic. com is created out of our passion for financial markets and online trading. We do it every day and we are the best in it. Our goal is simple - to provide the most proven tools that you will use in your trading. We hope to inspire you, unleash your potential and contribute to your success in investing in financial markets.

We believe that thanks to online trading you will be able to realize your dreams and goals. All content posted on the website comparic. com and its subpages is for information purposes only and presents the authors' own opinions. These contents have been prepared diligently, with due diligence and do not constitute the basis for making investment decisions, investment advice or recommendations within the meaning of the Regulation of the Minister of Finance of 19 October on information constituting recommendations regarding financial instruments, their issuers or exhibitors Dz.

Of Laws of , No. Any trader worth their salt will tell you that the strategy you use will pave the way to your eventual success or failure. You must remember that some strategies yield outstanding results in the short term, and others make you great money in the long term.

Recognizing which strategy is suitable for what circumstance is a part of being a good trader. Every time you develop a new strategy or make changes to one you use, test it out.

Also, make sure you have a money management strategy to complement your signal. If you want to start trading Binary Options successfully, you will need a reliable broker. In the next section, we show your 10 different strategies. We recommend using the practice account first before you invest real money. The following 3 brokers a tested and checked by us:. Asset prices typically move in accordance with trends.

The price will rise or fall along with associated assets since the market is constantly speculating and in real-time. You must remember that a trend rarely has a straight line up or down. There are two ways of trading with trends: you can either trade with overall trends or trade with swings. Most traders make a profit by looking at the general direction and setting an end-of-day or end-of-week expiry.

Alternatively, you can trade with every swing in the trend. As mentioned earlier, trends typically move in a zig-zag fashion. Betting during the up or downswing can make you more money in a short period, but it is also significantly riskier. You must examine the chart and look at the trend lines. If the line is flat, find another option to trade.

However, if you see that the line is going up, the price will likely go higher. The same is true if you see that the line is going down. Once you find the right asset and trend, you can use Binary Options and make money if your speculations are correct. While following the news is one of the most basic strategies, it can make you good profits. It is easier than performing technical analysis, but it requires you to read the news and stay in the loop all day, every day.

Online news is only the start. You must pick up newspapers, tune into news stations, and leverage as many other sources of information as you can.

The idea here is to understand the asset as deeply as possible before evaluating whether its price will rise or fall. You also need to reflect upon human behavior. A piece of news you find positive may not be seen as great news by the rest of the market. One of the drawbacks of using the news to make trading decisions is that you cannot tell how far up or down the price will go and how long the price movement will last because of a particular event.

If you find out they will be unveiling a new product, you can buy options and wait for your profits to roll in when everyone loves the new product. This strategy must be used in conjunction with the news strategy. Straddle trades must be made right before an important announcement. The strategy leverages the swings of a trend. You will make some money regardless of if the price goes up or down. The straddle strategy is known among traders as one of the most consistent ways to make profits — even in a volatile market.

In this scenario, the affected companies will scramble to find a solution to continue production. Using the straddle strategy and leveraging the waxing and waning of the market in scenarios like these is an excellent way to make profits using binary options.

You will benefit from the market regardless of what happens in the long run. The Pinocchio strategy is similar to the straddle strategy — it calls for deliberately betting against the current trend. In a nutshell, if an asset is experiencing an upward trend, you must place an option expecting the price to fall. While beginners with no knowledge can apply the strategy, a deep understanding of the asset is essential to making this strategy work. Only if you understand how the asset works will you make accurate predictions and make profits.

When the candle is white or dark, it indicates that the market is bearing or bullish, respectively. If the wick of the candle points downwards, place a call option. If the wick points upwards, place a put option. If you know how to read asset charts, you can try out this strategy. Candlesticks show you a lot of information about how the asset behaves over time. You will start to see formations that repeat over time, which will reveal the potential movement of the price in the future.

If you see that the candlesticks of an asset are taller and the price is experiencing a peak, you can expect the price to fall soon. On the other hand, if you see a trough of candlesticks, you can expect the price to rise.

These mountains and valleys often appear over months. You can set expiry times by looking at the frequency of a mountain and valley appearing to make a profit. Fundamental analysis is less a strategy and more a tool to help you understand an asset better. The goal of fundamental analysis is to gain information about the asset so you can profit from it later. It requires you to perform an in-depth review of every aspect of the asset or company.

Once the trade expires, you will know if you can make money from the asset and trade larger amounts. You must then study the asset and place a small trade as a call or put to test out a strategy you think will work. Some traders consider hedging lazy, and for good reason. It involves placing both calls and puts on the asset at the same time. In a way, it is similar to the straddle strategy — you will make money regardless of where the price goes. It is also a great method of picking the right type of Binary Option.

Using boundary options is one of the best ways to leverage the momentum and win trades. In fact, they are the only options type that will let you win a trade based only on the momentum.

Using the MFI indicator is one of the most effective ways to make money using Binary Options in short periods. Furthermore, since your capital will be blocked for a short time, you will be able to make many more trades in a day. However, all short-term strategies are based on technical analysis, including this one.

In short periods, the only thing that influences the price of assets is the supply and the demand. Technical analysis is the only way to understand if traders are buying or selling, and one of the best indicators that help you understand this relationship is the Money Flow Index MFI indicator.

The indicator compares the number of assets sold to the number of assets bought, generating a value between 0 and If you understand the relationship between the traders that are buying and selling an asset, you can also estimate what will happen to the price of the asset since it is determined by supply and demand. The demand will go down, and the price will fall. The supply will exhaust, and the market will rise.

The MFI strategy works exceptionally well in five-minute spans. However, in the long run, and in periods longer than a year, the MFI remains in the extremes. The fundamental influences have a strong effect on the asset and will push the price in the same direction for years.

The strategy combines simple signals to make sophisticated predictions about the price. The fastest-moving average will be closest to the price; the second-fastest will be the second closest, and so on. When you see that multiple moving averages are stacked in the right way, you will know that the price is making a strong movement in one direction.

This is the right time to invest. If the shortest moving average is above the medium one, which is above the longest moving average, bet on the prices rising. If the shortest average is below the medium average, which is below the longest moving average, you must bet on the prices falling.

While you can set the moving averages to have any number of periods, consider doubling the number of periods in each moving average. The ratio guarantees that the averages are just different enough to create a helpful and accurate signal.

You will see the same opportunities that other traders do, allowing you to tune into the inside knowledge the rest of the market has.

Bill Williams introduced the Awesome Oscillator. Basically, it is a bar simple moving average subtracted from a 5-bar simple moving average. It can be applied across different markets; be it stocks, commodities, indices, and currencies. Only experienced traders know that there is a huge profit potential in trend reversals while beginners are scared of sudden changes in market.

However, when you trade in binary options your profit or loss is does not depend on the points of the price. It depends on whether you predicted the trend correctly. Traders receive a payout if the binary option expires in the money and incur a loss if it expires out of the money. Traders rely on the Awesome Oscillator to predict trend reversals.

If you trade in Pocket Option trading terminal you can find the AO among standard indicators. Bill Williams wrote that it is the best oscillator he ever invented. He also introduced such indicators as Alligator, Accelerator, Percent Range, Fractals and many others. Like most oscillators, Awesome Oscillator is displayed in a separate window under the price chart.

It looks like a histogram located on both sides of the zero level. In simple words, AO looks at the last five bars in comparison with the wider time frame of the previous 34 bars. The value of the Awesome Oscillator indicator is calculated as the difference between moving averages over these two time frames. Rather than using closing prices, though, these simple moving averages use the midpoints of the bars i. halfway between the high and the low. When you tune the settings and see that everything is working, you can apply it in your binary options trading strategy.

The awesome oscillator will fluctuate between positive and negative territory. A positive reading means the fast period is greater than the slow and conversely, a negative is when the fast is less than the slow. The AO histogram crossing above the zero line indicates bullish momentum. Conversely, when it crosses below, it is indicative of bearish momentum.

When you trade in your terminal, you can see the signal of a trend change in color in the Awesome Oscillator. The Awesome Oscillator works with any timeframes. It is also good for turbo options however you will get a lot of false readings during a choppy market.

The recommended expiration period should be more than the time of formation of two candles. Awesome Oscillator can predict divergence and should be used as an additional signal for opening a transaction.

However, you as a trader need to be prepared for the harsh reality of trading. Beginning traders should read more about the AO indicator altogether and prepare to combine the AO with other indicators. Find out for yourself if you understand the AO and give a try to a demo account with the Pocket Option. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. How to apply Awesome Oscillator in Trading Strategy? Generally speaking, the basic rules are as follows: The CALL option when the histogram moves from the bottom to the top with a new bar formed above the zero.

The PUT option when the histogram moves to the lower part and a bar formed below the zero level. Start trading. Leave a Reply Cancel reply Your email address will not be published. One-Two-Three Strategy for Trading Turbo Options. Williams Strategies for Short and Long Terms.

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Prince says:. An RSI reading below 20 shows that the market is in oversold territory and it can potentially reverse. Don't forget to grab our price action cheat sheet! com is not responsible for the content of external internet sites that link to this site or which are linked from it. The comparic. Hey, wait! Economic Calendar.

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