The Moving Average Strategy

The Moving Average Strategy

The Moving Average Strategy

 

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The binary options ins and outs of the moving average strategy

 

The Moving Average StrategyThe moving average strategy exist for defining the trend and identify the changes occurring in a trend. In short, the moving average line is average price of the stock over a given time period.

 

 

The Moving Average Strategy for Day Trading

 

 

There is a multiple range of the moving average strategy. The time period to be chosen depends on how the trader prefers to trade and this mainly depends on which asset and strategy the trader prefers, is the trader using the 60 second strategy or the hourly trade.

 

In the event where an investor decides to take on day trading it would be advisable to trade with the moving average strategy and the ten minute period is probably the best strategy to choose as it is a simple moving average.

 

The reason behind this is that during day trading, shorter periods for moving averages are advised as they are accurate and supply the investor with the unequaled data needed to make a profitable trade.

 

Day traders must track the price movement very carefully as breakouts in the moving average strategy can lead to very high trading profits.

 

 

Stopping a trade using the moving average strategy

 

After entering a trade in a breakout, the trader enters a trade using the 10 minute moving average strategy. This will give the trader some maneuverability in case the trader observes the asset is making a break in the desired direction.

 

 

The 10 minute moving average strategy

 

It is worth while mentioning, from my personal trading experience, is to totally avoid the application of the 50 period and 200 period moving average strategy on a chart with the five minutes interval.

 

Using larger period’s interval means that the trader can be unyielding with their active trading. The five or the ten minute moving average is best advised by the experienced day traders. The next best thing would be the 20 period moving average.

 

There is a disadvantage in this trading period and the problem remains as the 20 period is quite large for trade breakouts and an investor can miss out on most asset breakouts, it could be very upsetting to let go of potential trading profits. The 10 period moving average gives time for stocks to settle but an experienced investor can make the most out of this.

 

 

The 200 period moving average strategy

 

The 200 moving average strategy is a full blown bull territory separating the bear territory from the bulls. The research has shown that concentrating on long positions above the line as well as shorter positions underneath this line can give the trader a winning edge.

 

Add the moving average strategy for all charts and all time frames. This includes:

 

•           Weekly charts

•           Daily charts

•           Intraday charts

 

The 200 moving average strategy works well for traders, however, day traders should probably steer clear of it as it tends to miss breakouts most of the time. The assets reverse in this section quite often.

 

 

The usage of filters

 

Filters are commonly used in technical analysis to boost the investors’ confidence in a particular trade.

 

For instance, most traders hold on till the pair crosses over the moving average and just is above ten percent of the moving average prior to placing the order. This ensures that crossover is appropriate and cuts down the false signals.

 

The main disadvantage in this strategy is that filters give up the gain and traders often miss a large piece of the profit that could have been made in that particular investment. No rules and laws govern the filtering technique as it is just an additional trading tool which makes it possible for an investor to make their trade in full confidence.

 

 

Wrong steps in the moving average strategy

 

Not using advised methods

 

Traders often make decisions based on a hunch or their gut feeling. This is precarious when your capital is involved and when a volatile market such as binary options are concerned it can easily wipe out an entire portfolio fast.

 

When trading binary options or using the moving average strategy, proper research and market information is required in order to make them work in your favour and make profitable investments.

 

 

Using two or more moving averages

 

The binary options traders are known to have multiple indicators on their front screens. This can be counterproductive for a trader. Some investors deploy a number of moving average time periods on their screens at once.

 

However, if you are a new comer to the binary options trading sector, you can begin with applying just one moving average (the 10 minute moving average) which would be enough to show market breakouts for successful and profitable investments.

 

 

Entering a trade with the moving average strategy crossovers

 

In some cases, the expert traders often cross between trades and negate the price and volume action of the given chart. This is however a strategy that should be left for a later stage of investments as it requires deeper trading knowledge.

 

 

In conclusion

 

The Moving Average Strategy can work well for new traders and experts alike. Making good use of this tool can make an investor’s portfolio grow fast.

 

 

It is also very advisable for new comers to binary options trading to educate themselves prior to making trades. This can be done by reading some of the many trading strategies available in our tutorial section.

 

As a new trader you should also make your first investments by using a good Demo Account that will be provided to you by one of our leading Online Brokers. A demo account will enable you to trade the real binary options market in real time using demo cash. By doing so you are able to try out the many winning trading strategies without risking your own capital in the process.

 

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MACD Indicator Strategy

MACD Indicator Strategy

MACD indicator strategy

 

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The essentials of the MACD indicator strategy and how this winning binary options trading strategy can help you make more profitable investments.

 

 

The definition of MACD

 

By definition, the MACD stands for Moving Average Convergence Divergence. It is an indicator used in trading and a technical analysis tool.

 

The MACD indicator strategy has become a useful trading tool among new traders in recent years due to the accurate indications it provides the traders. There are some misleading notions attached to it as traders place their entire predictions on this one indicator only.

 

It is however a fascinating concept, but traders should use more than one technical analysis tool before making an investment especially in highly volatile markets such as the binary options market.

 

As opposed to many other analytic tools the MACD indicator strategy indicator is a bit different as the indication lines are not straight and the trader is always looking at three indicators at a time.

 

 

MACD Indicator Strategy

 

 

The mechanics of the MACD indicator strategy

 

 

 

The MACD indicator strategy shows the difference between two exponential quantities moving averages. The consequent part is that of the signal line. The traders employ the MACD like a crossover. When MACD crosses a signal line, the traders will than either buy or sell an asset based on the cross.

 

MACD is quite a reliable indicator and many expert binary options traders employ the MACD indicator strategy in their daily trading. This indicator assists the investor in confirming the initial trade setups. The stock traders as well as binary options traders both rely on this indicator for their successful daily trading.

 

 

How to become a successful trader

 

In order for you to become a very successful trader you must first understand the pitfalls most investors fall in when they first start investing.

 

There is a reason for the trading failure of most stock traders and binary options traders. The primary reason is the trader’s lack of patience in trading which leads to failure. The traders lack the patience of the initial trade setup, they usually wait for an hour, day or for a few minutes for a signal to appear.

 

On other occasions, when they succeed in a profitable prediction, they will cash in on the profit much too early on and by doing so they will give up a sizeable amount of the overall trading profit.

 

Cashing in early on a profitable trade or two is also a type of binary options trading strategy that works well for new traders, it will however reduce the overall portfolio profits if an investor applies this trading strategy all the time.

 

To a non patient trader, profits will be hard to come by but by making good use of the MACD indicator strategy which has been designed for this type of trader, the profitable trades will be higher and made more frequently.

 

 

The Main Advantage of the MACD indicator strategy

 

The MACD indicator strategy will force or make the trader wait for the appropriate time before entering a trade, this will delay the trade until the best time for the trader to enter a winning trading position.

 

The MACD indicator strategy is useful in binary options trading and other financial markets such as the forex and the stock trading market alike.

 

In many strategies and other indicators, the trade entrance point is not shown to the investor. In case of the MACD indicator strategy, it will indicate to the trader when to apply the trade at a very specific time of entry and by doing so the trader is prevented from losing money by going against the overall market movement.

 

In many cases, the trend is allowed to follow on when it is depleting; but MACD opposes such strategies. Thus, the trader doesn’t trade on a fading trade as it can reverse.

 

 

MACD indicator strategy – A Precise Trading Tool

 

The MACD indicator strategy is the amalgamation of two stirring averages. It negates the market noise and works as a precise tool. As long as the trader is working with this indicator tool and applies the basic rules associated with utilizing it, its precise mathematical formula and how it is calculated isn’t needed at all.

 

The complex formula is employed by software designers and programmers.

 

 

MACD movements on a chart

 

The histograms of the MACD indicator strategy change to a blue color when there is an upward market movement and when the assets movement is in a downward trend the indicator color turns red.

 

As in all other financial market trends, the upward movement of an asset is bullish and the downward movement is known as being bearish.

 

 

Broad application of the MACD indicator strategy

 

Thus, the MACD indicator strategy can be employed for all asset classes across a wide spectrum of different time zones. However, as mentioned in many previous trading strategies and articles on this site, using one indicator will usually not be enough for successful trading.  

 

 

Using a second indicator can always work in a trader’s favor. The expert traders will usually implement a few strategies and indicators at once to get a clearer market picture. For a new comer to the trading markets, the use of more than two or three indicators at a time will results in data confusion and will probably end up in a bad trade.

 

 

Technical info on the MACD

 

The MACD indicator strategy is built up of a difference of 12-26 exponential moving averages. MACD shows the difference from 26 and 12 and displays it on the headline.

 

The MACD indicators have an additional line which is the exponential moving average of main line. The moving average is a number set to 9 and is known as signal line.

 

 

To Conclude

 

The MACD indicator strategy is a very effective trading tool and can tremendously assist the new and expert traders alike in making profitable investments by entering a trade at the best time.

 

For a new trader this tool will undoubtedly take out the risk involved in trading and the uncertainty involved in making the important decision of when to enter a trade.

 

Make good use of this tool and you will undoubtedly see a huge positive increase in your binary options trading profits.

 

Trading Binary Options Proven Strategy

Trading Binary Options Proven Strategy

Trading Binary Options Proven Strategy

 

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The following video will show you a Trading Binary Options Proven Strategy.

We can see that by following the simple steps of this trader that your investment will be profitable and over time will make you enourmous trading profits.

The Binary Options Proven Video

 

 Trading Binary Options Proven Strategy

 

There are many Trading Binary Options Strategies out there and they all seem to work for their traders. That being said, it does not neccessarily mean that one traders binary options trading strategy will work for someone else.

 

In order to find your Binary Options Trading Strategy you must try out this strategy first to see whether or not it suits your trading needs.

The Trading Binary Options Proven Strategy is one of many both new and expert traders can use, we always strongly advise our new traders to try out various trading strategies before commiting to one.

The best way to experiment with new binary options trading strategies is by using a demo account which will usually be provided by one of our leading brokers, this will allows you to try out and find the trading strategy that works best for you.

The Trading Binary Options Proven Strategy may be the best strategy for you but you should try out other trading strategies that you may be able to use for a profitable binary options trading income.

 

Read more on our leading Broker and the amazing Trading Software >>>

Trading Binary Options Proven Strategy

Binary Options Proven Strategy

Trading Binary Options Proven Strategy

 

Pips Wizard Pro

The following video will show you a Trading Binary Options Proven Strategy.

 

 

We can see that by following the simple steps of this trader that your investment will be profitable and over time will make you enourmous trading profits.

The Binary Options Proven Video

 

 Trading Binary Options Proven Strategy

 

There are many Trading Binary Options Strategies out there and they all seem to work for their traders. That being said, it does not neccessarily mean that one traders binary options trading strategy will work for someone else.

 

 

In order to find your Binary Options Trading Strategy you must try out this strategy first to see whether or not it suits your trading needs.

 

For more Binary Options Trading Strategies >>>

Binary options 60 second strategy for Beginners

binary options trading system logo

Binary options 60 second strategy for beginners

 

Pips Wizard Pro

 

This amazing binary options 60 second strategy for beginners video will show you how to make a profit trading binary options using the 60 second trading strategy.

 

Are you new to trading binary options? No worries, follow the video tutorial and you too can make a profit trading binary options in less than a minute.

Binary options 60 second strategy for Beginners

 

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Binary Options Trading System Collar Strategy

Binary Options Trading System Collar Strategy

Binary Options Trading System Collar Strategy

 

Pips Wizard Pro

Binary Options Trading System Collar StrategyThe Binary Options Trading System Collar Strategy is mainly used by professional traders, it is not widely used due to the complexity involved in the implementation of it.

 

As you may already know, there are many trading strategies out there which are used by both new and expert investors. Every expert trader will eventually use a trading system they developed or a winning strategy they have come across and tried over the years.

 

Whether you are a new trader or not, you should always be looking out for new helpful and easy to use trading strategies. The greater your knowledge the better your trades will become and this will have a direct impact on your overall profits.

 

 

Binary Options Demo Account

 

The easiest and most beneficial way to acquire some trading knowledge is by trading the real market and gaining experience in the process. That being said, if you are new to the financial trading world this experience can be very costly if you trade without any prior knowledge in trading.

 

This is where the free demo account comes into play, once you have chosen your online broker and have signed up for your trading account, you will receive a free demo account. These accounts are usually topped up with about fifty thousand dollars of free demo cash for you to invest using your binary options trading system.

 

Using this account you can try out the Binary Options Trading System Collar Strategy risk free, this is the only way you can choose a trading system that suits your trading type.

 

 

Counter balance your trade

 

Using the Binary Options Trading System Collar Strategy will help you reduce the risk in a doubtful trade to a minimum.

 

The Collar strategy normally employ by traders who wish to invest in an option but are a little unsure of the assets motion due to high volatility in the market. Using this trading strategy allows the trader to protect their initial capital invested.

 

 

Using the Collar Trading Strategy

 

Using the Collar Trading Strategy would work in the following manner, say you wish to invest in an asset and you buy into a Call Option, the collar strategy means you will have to sell a Put Option for the same amount as the previous purchase of the call option.

 

Implementing the Binary Options Trading System Collar Strategy means that the original cost that was paid for the call option will be totally counterbalanced and provide the trader a sure profit. This profit may be lower than a trader would make in a normal straight forward trade, but it does provide you with almost total security when entering a high risk trade.

 

Binary Options Trading System Collar Strategy

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Fibonacci Trading Strategy

Fibonacci Trading Strategy

 

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The Fibonacci Trading Strategy

 

How the Fibonacci Trading Strategy can work for you

 

Fibonacci trading strategy gives us a way to predict levels of support and resistance and the level at which the asset price will or should target.

 

The Fibonacci strategy can also be implemented to set trading stops or to time an entry into a trade.

Fibonacci Trading Strategy

 

 

 

 

 

This Trading Strategy is one of the widely used trading strategis in binary options and one of the most reliable ones in use. It is accurate, easy to understand and implement.

Most if not all binary options trading platforms will have the Fibonacci strategy as a built in trading tool for all traders to use. It’s accuracy and ease of use make this a very valuable trading tool and all a trader has to do in order to use this is to pull a line between two given points.

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For more winning strategies >>>