SMA options strategy

Once you log SMA options strategy, choose the asset and timeframe, click on the indicators feature 1. We recommend choosing a period of 20 for this particular strategy. In the case, SMA 20 is moving above the prices, and then touches or crosses a green candle 1you can expect the trend to continue downwards.

Awesome SMA – Strategy for Binary Options

It will be confirmed when the red candle appears 2 after the green one and the indicator stays above the prices. In the case, SMA 20 is moving below the prices, and then touches or crosses a red candle 1the forecast is that the uptrend will be sustained.

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You will get the confirmation when the green candle appears 2 after the red one and the indicator remains below the prices. Look at the below charts.

Short position example 3 exemplary entry points indicated by SMA 20 Three successful trades in a row 1 This is the first signal from SMA 20 to enter the trade. The Simple Moving Average is placed above the prices and cuts the bullish candle.

However, it crosses almost at the bottom of the candle. You SMA options strategy to wait for the two bearish candles and just then enter a 5-minute sell position.

Dukascopy - SMA Crossover

It cuts the bullish candle and then the bearish candle develops. The indicator remains above the prices. You can deduce the downtrend will continue so when the next bearish candle appears you should enter a 5-minute sell position.

  • Aggressive trading on binary options
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  • Most investors will look for a cross above or below this average to represent if the stock is in a bullish or bearish trend.
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SMA 20 cuts the bullish candle and remains above the prices. The next candle that develops is the red one. So with the subsequent bearish candle, you should again, enter a sell position.

You just need to observe when it touches or crosses the candles and where it is situated about the price chart.

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After, the only thing left is to enter the trade. The moment you ought to open a position is after binary options 2 minute second candle after crossing with SMA fully develops.

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This will give you the certainty that the trend is going where you thought it would go. The interval should be 5 minutes. Is SMA20 make money on the exchange of electronic money really good indicator to trade with?

But when markets are trending, it is a worthy technical analysis tool. As you could see in the examples above, SMA 20 is not only simple but also reliable. You need to watch carefully its relation to the prices and the result should be satisfactory.

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However, SMA 20 is not the best tool to use in the markets of high volatility, when the prices change rapidly, for example, when some news cause sudden action. You can apply compounding as a capital management strategy. In the following transactions, you trade SMA options strategy the initial investment plus the profit you gained earlier. With this strategy, you will close the day at a SMA options strategy even making only 3 trades per day.

But you need to be careful because the impatience can cost you a loss. SMA 20 signals sometimes appear infrequently and you have to wait and analyze the market patiently before entering the right trade.

Effective SMA20 strategy for derivative traders

And if it happens, that there was a signal but you missed it, just let it go. Wait for the next opportunity, do not rush things. Because if you decided to enter the trade in such a moment anyway, you would most surely end up losing. The last SMA options strategy to do is to put your knowledge about SMA into practice. Go ahead and open a free Olymp Trade demo accountif you do not have one yet. In the real market, always be wary of losing SMA options strategy.

Expect the unexpected.

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This strategy is not risk-free. Try for yourself how the Simple Moving Average indicator suits you and share your comments with us. We wish you only profitable SMA options strategy