Trading Bounces in Trend, $150 in 6 minutes

I can confidently say that this is going to be one of the simplest ways of trading in trend market in both binary options and forex. With this method you do not need to identify the beginning of the trend, all you need to do is to trade at the right timing that identified by the indicator. Read on to find out more about this little beast!
 
With this strategy we are going to use the Simple Moving Average, instead of the common crossover, this time we are going to trade the relationship between the candlestick and the moving averages.
 
Some of you may not notice that moving average can be used as support and resistant level to trade bounces in trend. And in fact, this is quite an efficient yet simple way to catch chances in trends.
 
In this method we are using two moving averages, and we will use the relationship of these two moving averages to identify the trend direction, whether it is uptrend, downtrend or range market. After determining the trend direction, we will then use the long-term moving average (red) to identify the right timing to enter profitable trades.

Setting

  1. Go to technical indicator;
  2. Select Simple Moving Average;
  3. Open detail setting for Simple Moving Average;
  4. De-select SMA3;
  5. Click on parameter;
  6. Change SMA1 to 10, and SMA2 to 20;
  7. Close window to complete indicator setting;
  8. Change candlestick timeframe to 1M (1 minute);
  9. Change Option Period to 3min (3 Minutes) or 5min (5 Minutes).

Timing for HIGH

  1. The market is in uptrend if blue SMA is above red SMA;
  2. Wait for candlestick to engage with red SMA;
  3. And make sure the candlestick that engages the SMA is a bullish candlestick (Green);
  4. If the all above criteria are met, please HIGH.

Timing for LOW

  1. The market is in downtrend if red SMA is above blue SMA;
  2. Wait for candlestick to engage with red SMA;
  3. And make sure the candlestick that engages the SMA is a bearish candlestick (White);
  4. If the all above criteria are met, please LOW.

Result

I tried using this method this morning and place two 3 minutes trades and both ended up in profit. The point for this strategy is to wait until you see the entry point that meets all the criteria as mention above and once you spot any entry points, the chances for you to profit is high! Give it a try and if you have any question please come and talk with me!

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