Channel trading system for binary options EMA Crossover signal with Stochastic colored
The basis of trading strategy for binary options EMA Crossover signal with Stochastic colored is a tactic for the rebound from the border of the channel with confirmation by other indicators.
Input parameters
- Currency pairs: any.
- Timeframe: M15 and higher.
- Duration of the option: 1 candle.
- Bidding time: any.
- Risk Management: Choose such an option volume that the risk is no more than 2-5% of the deposit per trade.
Used indicators
- Bands - oscillator, which is based on the Bollinger Band indicator. Indicates a trading channel;
- Color Stochastic v1.04 - A modification of the standard Stochastic indicator. Acts as a filter;
- EMA_Cross - dial indicatorbased on the intersection of exponential moving averages. Acts as a source of trading signals.
Installing indicators and trading strategy template
- Unpack the archive with templates and indicators.
- Copy the indicators to the folder MQL4 -> indicators.
- Copy the templates into the templates folder.
- Restart the terminal.
- Open the chart of the desired currency pair.
- Set the template named EMA Crossover signal with Stochastic colored.
- Switching to the TF M15.
The schedule should look like this:
Signals indicating the purchase of a CALL option (predicting an upward move)
- The price touched or broke the lower limit of the channel.
- There is an up arrow on the chart.
- The Color Stochastic indicator shows a green bar.
Signals indicating the purchase of a PUT option (predicting a downward movement)
- The price touched or broke the upper limit of the channel.
- A down arrow appeared on the chart.
- The Color Stochastic indicator shows a red bar.
Conclusions
Essentially, trading strategy for binary options EMA Crossover signal with Stochastic colored is the signals of one arrow indicator filtered by two other indicators. In this format, the strategy is applicable in trading binary optionsbut can give a lot of false signals when trading on the foreign exchange market. It is possible and even recommended to optimize a trading strategy by introducing special indicators for binary options.
For normal trading on , according to the experts of ForTrader.org, it is necessary to introduce an additional filter, such as the ATR indicator, which will significantly reduce the number of erroneous entries.
Download trading strategy templates and indicators
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