Moving averages are lagging indicators that can be used to determine buy CALL/buy PUT trend bias.
Price below the moving average suggests bearish bias. On the contrary, price above the moving average suggests bullish bias.
This binary system is composed of an exponential moving average, a short-term moving average cross-over system with overbought (0.75) – oversold (0.15) oscillator readings to pinpoint entry signals.
Binary Indicators: 100 period Exponential Moving Average, EMA-Crossover_Signal_BO, BOlaguerre ( settings: gamma 0.57)
Time Frame: 5 min and above
Trading sessions: Any
Currency pairs: EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CAD, EUR/JPY, GBP/JPY
Commodities: Gold, Silver
GBP/USD 5 Min Chart Example (Open Buy Put Option)
All buy PUT binary options signals expired in the money with 81% profit per trade.
Buy CALL Option:
Here are the steps to execute buy Call using the moving averages system:
- Price above the 100 period Exponential Moving Average (bullish trend)
- Wait for the EMA-Crossover_Signal_BO GREEN arrow
- BOlaquerre rises back above 0.15 from below (oversold)
- Buy Call Option at the open of the next bar
Buy PUT Option:
Here are the steps to execute buy Put using the moving averages system:
- Price below the 100 period Exponential Moving Average (bearish trend)
- Wait for the EMA-Crossover_Signal_BO RED arrow
- BOlaquerre falls back below 0.75 from above (overbought)
- Buy Put Option at the open of the next bar
At least 4 candlesticks. Some examples:
- 5 Min chart: 20 min expiry.
- Hourly chart: 240 min expiry.
As with everything, please experiment with the expiry time settings to find out what works best for your trading style.