Binary Option Tunneling Strategy
Most analytical approaches to trading require the use of graphs. In particular you must establish a method of reading these charts and obtaining the information you need from them. The basic lines using binary option tunneling strategy which you will probably have an understanding of is the center line; for predicting an average price and the top and bottom lines.
These are often referred to as the resistance and support lines and they indicate the maximum price range when an asset is behaving normally. In general a price which is heading towards a top or bottom line is likely to change price in the near future. Once you have calculated the timing you can generate a significant number of successful trades.
The binary option tunneling strategy works by looking at moving averages. In particular it assists with identifying when they cross each other. This approach can be successfully applied to almost any type of trade although historically it has experienced the best results when trading currencies.
Exponential Moving Averages And Binary Option Tunneling Strategy
Much like the Bollinger bands, binary option tunneling strategy uses two exponential moving averages. These lines are set at twenty eight weeks from normal average and eighteen weeks. These lines are usually drawn in red. You will also need to add two more moving averages at five and twelve from the normal and one additional RSI indicator. You will now have half a dozen lines on your chart and the two red ones will appear like a tunnel.
The averages set at five and twelve need to be weighted. Whenever the moving average crosses the weighted averages you will have located the optimum time to trade trading binary option tunneling strategy . This should also indicate the way in which the price is moving and whether you need to place a put or a call. It is important to note that although a trade is possible when the lines cross, the safest time to trade profitably is when the red lines run next to each other and close together.
The Direction Of The Trade In Perspective Of Binary Option Tunneling Strategy
Alongside using these lines to distinguish when a trade should be placed you can define the direction of the trade. If the weighted average lines cross the previously drawn five and twelve lines and are moving in the wrong direction it is likely the price is about to change and you should place the corresponding trade. The time between the two weighted lines crossing themselves is the indicator as to how long a trade should last.
Finally, you will need to keep an eye on the RSI line drawn in the middle of the chart. If the line goes above fifty it is a good opportunity to buy your chose asset. If it is below then sell!