Strategy binary options trading – Two Stochastic
For analysis, many traders use as an invited Stochastic Oscillator. In most cases, it is simply called the Stochastic. Stochastic applied, usually together with other indicators. Application of Stochastic together with other indicators due to the fact that the stochastic oscillator itself with melenkimi parameters will produce enough huge number of signals that are false.
Also, this indicator, with more parameters will show the signal to be late. That is too late. For this reason, the Stochastic is generally used to determine the beginning and end of the movement, while proceeding with oversold zones and zones overbought. To complement the stochastic used a variety of indicators.Often used another Stochastics as complementary. Such use is considered basic and already given has been tested by time. This strategy is considered to be the simplest. Used two oscillators (stochastic), but with different settings. Such Stochastics help to find two of the most difficult and the most important moments. Time to buy, or call, and the time to sell, or entanglement. Implement use can be on any pair of binary options (currency pair) forex. To do the analysis, we use graphs to the presence of the interim period. Use such graphics as H4 chart or graph D1.
Stochastic oscillator with such data as parameters (21,9,9) is considered a major indicator. Faster stochastic oscillator with such data parameters (9,3,3) – considered as a subsidiary.
As with any job, there are some rules that should be used and adhered to.
Making a purchase option “call” at a time when the two indicators will, is in the same position the oversold zone (namely, below thirty) and form a signal to make a purchase. Roughly, it looks solid blue line will cross the line slow (ie dotted) from the bottom up and secured in this position. Then wait for the close of the candle, which was formed by the signal. In case it does not disappear, it is possible to buy.
By the same principle, carried out sell signal. Two indicators will be, located in an area that is called the overbought area (in other words, the will is above seventy), and will form the desired signal. It looks like this blue solid line intersects the top down, the dotted red.
Using these indicators, we can carry out identification of major market trends, more accurately, which in turn allows the right time to acquire the desired options.