The GEEK Strategy of Moving Averages Binary Options 2020

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The GEEK Strategy of Moving Averages

Are you looking for a moving average strategy for binary options?

One of the easiest ways to trade the forex markets is by using a moving strategy. While this strategy may be simple, the moving average needs to be exponential. This ensures you accomplish the right trades sooner and you squeeze a little more out of the prices. You can improve this system by adding a moving average. In this way, you can measure extremes as well as get information from crossovers. Let’s look at a 30 bar exponential moving average to demonstrate and use 2 time frames, 30 minutes and daily. The moving average will be kept at 30 bars for both time frames.

We also have a similar strategy using MA, called the Rainbow Strategy:

EMA Rainbow Strategy for binary options

Blue moving average is on top and golden is on the bottom.This strategy uses only one indicator and that is good old Moving Average which you may have already used and know about it. We will use three EMA (Exponential Moving Average) set to 6, 14 and 26 colored differently to determine the trend and […]

Why use a moving average?

Measuring average prices over a period of time is a excellent way to gauge market strength and the current trend. Moving averages allows you to do this and can also be used to create the basis for a technical analysis. Moving averages are also referred to as a rolling mean. When the moving average is plotted alongside current pricing, the data produced measures trend. When prices hit higher levels, the moving average escalates as well and decreases when prices close lower. To ensure the exponential moving average offers value as a current indicator, the older data has less weight than the newer information gained.

So how does it work?

Working on 2 separate time frames and an exponential moving average of 30 days you can begin to pick up trends. The longer time frame will show an underlying trend which can be used as a foundation. When you work on the daily time frame, you can see when the trend is bullish (above the moving average) or bearish (below the moving average). It is important to note, that while this is an indicator, other factors should be taken in to consideration such as the resistance, support and the long term trend. If the price has been above the moving average for quite some time and is nearing it’s long term resistance, be more cautious than if it has just moved above the resistance and is appearing to be on an upward trend.

Once you are sure of the underlying trend and you have ascertained that it is not about to reach a turning point, you can start working on a 30 minute bar chart. After around 10 days you would have a good view of support/resistance and the trend.

When the price moves above the 30 bar exponential moving average on the 30 minute chart, this would be your signal.

It can take quite a few hours to receive confirmation. Check the daily charts before continuing. Limit expiration from 1-4 hours. Signals may not also develop on a daily basis, but you may receive more than one in a single day. Your expiration will be shorter the closer the turning point seems to be. When the market is bullish, once the asset reaches above the 30 bar exponential moving average, this will be the signal to buy. You may miss the first signal and possibly take a loss on the final signal, but the signals in between should make up for it and help you achieve success.

This system works, it is a simple technical analysis which most traders in the current market place and often forms the basis for upper level, more complicate techniques. For amateur traders, this strategy is a good place to start. You need to learn the basics of technical analysis to understand the markets and a moving average system will help you with this skill. You should be able to achieve results on a consistent basis when you apply this strategy properly.

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The Geek Simple Moving Average Strategy – Defianly dont Suck!

The Geek reveals his basic strategy for trading popular forex pairs. The strategy focuses on short term moving averages, is trend following and can be used with other indicators. Moving averages are one of the most basic forms of technical analysis and often one of the most reliable.

Simple Moving Average Strategy For Binary Forex Options

This is one of the pillars of my personal trading system and an easy way to trade forex markets. It is a simple moving strategy but does not use a simple moving average. I prefer to use the exponential moving averages because it hugs prices a little tighter and helps you get into the right trades earlier. It is possible to advance this strategy with the addition of the simple moving average. With that addition it is then possible to measure extremes and take signals from crossovers but that is for a different time. Today I am focusing on the simple version of my moving average strategy. For this I am using a 30 bar exponential moving average and two time frames; daily and 30 minute. In each time frame the moving average will remain 30 bars.

Why Moving Averages?

Moving averages are a great way to measure trend and market strength. They measure the average price of an asset over time and can be of any length. They can also be manipulated in many ways, forming the foundations for a large chunk of technical analysis. The moving average, or rolling mean, produces a set of data that when plotted alongside prices measures trend. When prices are tending to close higher the moving average will move up, when prices are tending to close lower the moving average will close down. Using an exponential moving average means that the newest data has the most weight and the oldest data the least. This makes it a more current indicator than a simple moving average where all data points carry the same weight.

How this Strategy Works?

As I said this strategy uses the 30 day exponential moving average and two different time frames. I like to use multiple time frame analysis because it helps to weed out false signals. The first time frame is the longest and this one sets the underlying trend. The trend is your friend and I always like to trade with the trend. So, if on the daily charts the asset is above the 30 bar moving average the underlying trend is bullish. If it is below the 30 day moving average it is bearish. This must be taken under caution though because it is also important to see where price is relative to the longer term trend, support, resistance etc. If price is above the 30 day moving average but has been so for many weeks and the asset is approaching long term resistance I would be more cautious than if the asset had just broken above resistance and was crossing above the 30 day moving average with confirmation.

After determining the underlying trend and checking to make sure it was not too close to a possible turning point you can move down to charts of 30 minute bars. I usually use at least ten days to get a good view of where price is in relation to the past few days and any support/resistance. Assuming that the daily charts were bullish I will need to wait for bullish confirmation here as well.

The signal will be when price bounces from or moves back above the 30 bar EMA on the 30 minute chart. This could take a few hours so patience is key. If it takes a really long time for this confirmation signal to develop I always go back and check the daily charts again before moving on. Some days no signal will develop, some days you will get numerous signals. Typically expiration should be limited to 1-4 hours. The closer the asset is to a possible turning the point the shorter your expiration should be. Assuming bull market conditions any time the asset crosses from below or is above the 30 bar EMA and then pulls back to it is a buy signal. The first signal is hard to catch and the last signal can sometimes result in a loss but there are usually 3-5 good signals in between.

Why this Strategy Doesn’t Suck

This strategy doesn’t suck because it works. It works because it is based on sound, simple and easy to use technical analysis. Analysis used by nearly every trader in the market today. It is also the foundation for more advanced techniques and a great starting point for new traders. Moving averages are one of the pillars of technical analysis and something every trader should know how to use. By properly applying this strategy it is possible to achieve consistent results on a day to day basis.

Why This Strategy May Suck and Conclusion

I don’t think this strategy sucks. I could be wrong. If you think it sucks leave me message or post it in our Binary Options forum and we could talk about it.

The Geek’s Moving Average Pivot Strategy – Geek Ways

The Geek’s Moving Average Pivot Binary Options Strategy Review

I first thought of this strategy when answering some questions in the forum. A member was asking about pivots, what they were, the best way to find them and how to trade them. The answers to those questions are vast, there are several ways to determine pivots and even more ways to trade them. This is a strategy I worked out based on my answers, trading style and intended for short term use. I must warn you that this is a relatively straight forward strategy but one that may take more than a little experience to master as it relies on Fibonacci Retracements.

What Is The Geeks Moving Average Pivot Strategy

This is my strategy for trading short term time frames. It is based on short term moving averages, 30 bar, and uses pivots for target points. There are many ways to determine potential pivot points but I like using Fibonacci Retracements. I use two time frames for this strategy, 5 days with 30 minute candles and then 1 days with 5 minute candles. The longer term time frame is for setting the pivots, I look to the most recent trough/peak or peak/trough combination and use those to draw a Fibonacci Retracement from the left to the right. This sets my pivots and can be used for many days, up to and even after a new peak or trough forms on the chart. In the example below price action has bounced from a low and is in the middle of the range; if price is at a bottom or top, draw your Fib to that point and start from there looking for a bounce or a continuation.

Once the retracements are drawn I switch down to the 1 day 5 minute chart. I use two days to make sure I have a good frame of reference for today’s trading. This is when the moving average comes into play. I use the Fibonaccis as my pivots, at those points I us candle patterns and the moving average to look for signs of continuation or reversal. Typically, if one Fibonacci Retracement is broken price will move on to the next, if a retracement is support than a bounce will move up to the next and if one is resistance then price will move down to the next. In between prices will make bearish and bullish crossovers providing signals for entry providing confirmation of the signals.

Rule For Call Entry : Price makes a bullish crossover of the moving average or a confirmation of support on the moving average at or near a Fibonacci Retracement. The signal is stronger if it occurs in conjunction with a bullish crossover of a Fibonacci, or a confirmation of support at a Fibonacci. Recommended expiry is 5-15 minutes.

Rule For Put Entry : Price makes a bearish crossover of the moving average, or confirms resistance at the moving average, at or near a Fibonacci Retracement. The signal is stronger if it occurs at the same time it is making a bearish crossover of a Fibonacci Retracement, or confirming resistance at a retracement. Recommended expiry is 5-15 minutes.

Tip For Entry : Trend can play a huge role in the success of this strategy. I only take trades in line with the trend, based on simple visual observation. This is example is obviously in near term uptrend so my targets are calls. If the Fib was drawn from trough to peak instead of peak to trough I would most likely be targeting puts.

Why This Strategy Doesn’t Suck

This strategy doesn’t suck because it works, but really, because it is based on fundamentally sound analysis and years of experience. Fibonacci’s are uncannily accurate at predicting areas where signals are likely to occur. If you don’t use them you should, regardless of your other tools. Moving averages are another great tool and very useful for finding lots of signals. Together they make a powerful for short and long term traders alike.

Why This Strategy Might Suck

This strategy might suck because it is targeting short term trading and relies on relatively advanced, and esoteric, analysis. The fact is, no matter how accurate Fibonacci’s may be, they are only loosely accurate. What I mean is, a Fibonacci level is only a target zone for a signal to appear in, not a signal in and of itself. The retracement is a line, but the signal you are looking for could occur on the line, above or below it and be either bullish or bearish… it takes some skill and experience to know the difference. Newbies may find themselves pulling out their hair trying to make this work.

My Last Thoughts On The Moving Average Pivot Point Strategy

I think this is a good strategy and one that can be employed successfully by traders with a firm grasp on candlesticks, support/resistance and moving average trading. The thing to keep in mind is that the Fibonacci Retracements are only targets for signals, not signals. The moving average is for signals, use the Fibonacci’s to help determine trend and direction. For best results wait for the strong signals, the ones that confirm both the moving average and the retracement as they are more likely to close in the money with the recommended expiry.

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