Medium-term strategy
The medium-term strategy involves trading binary options with a minimum frequency of one day or more. This feature allows you to conduct technical analysis on daily as well as weekly charts. The main condition of the strategy is the presence of a trend and the implementation of a purchase or sale in the direction of its movement.
The medium-term strategy is successfully used by traders who prefer the maximum possible absence of risks, slow measured trading, which is characterized by the absence of quick income. Medium-term trading lasts long enough, has a long time interval and provides for a small risk from each transaction – only about 4% of the deposit. The best trading tool is the US dollar/euro currency pair.
Strategy tools
Simple Moving Averages or SMAs .
What the moving averages look like on a week-long time interval:
- SMAs with a period of 4 are red in color,
- Moving averages with a period of 8 are blue,
- SMAs with a period of 40 have a green dotted line.
Support and resistance levels that are marked visually.
Trend lines that are built on the lows and highs of the price.
Preparatory stage
On the chart with a weekly timeframe and add simple moving averages with different periods:
SMA 4 – red,
SMA 8 – blue,
SMA 40 – green,
In another window, open a chart of the same asset, but with a D1 timeframe, add three moving averages with periods:
SMA 5 – red,
SMA 20 – blue,
SMA 50 is green.
How the strategy works
The principle of medium-term trading is that when the trend begins to rise, the price should be located above the simple moving averages. And in reverse order: when the trend falls, the price should be below the SMA.
When the direction of the moving averages with periods 4 and 8 coincides with their direction on the daily chart on the weekly interval chart, they indicate the direction of the trend. In this case, it is necessary to determine which binary option should be bought – PUT or CALL.
In order not to miss the opening of a position, it is necessary to carry out an evening check:
The direction of the SMA with a period of 5 on the D chart will be opposite to the direction of the trend, or the moving average will be horizontal. After that, there will be a reversal in the direction of the trend.
An SMA with a period of 20 on a chart with a daily interval will move in the other direction from the direction in which the trend is moving, or will be horizontal. To sell, the price crosses the SMA and fixes lower, and to buy, it must fix higher in the direction of the trend.
Strategy signals
In order for trading medium-term options to bring you a good income, you need to enter the market correctly:
Buying a CALL option
- On the weekly chart, moving averages 4 and 8 are directed upwards,
- On the daily chart, the SMA 20 is pointing upwards,
- SMA 5 on D1 is directed in the opposite direction for several days, or was located horizontally
- The SMA 20 on D1 was directed in the opposite direction before its upward reversal and is located below the level of the other two moving averages.
Buying a PCI option
- Moving averages 4 and 8 are pointing downwards,
- The moving average of 20 on D1 is turned down,
- SMA 5 earlier (before it turned down) was directed horizontally or upwards,
- SMA 20 showed data like SMA 5, and fixed at a level below the other two SMAs.
Medium-term strategy at the broker Binomo
We recommend working with medium-term options with the Binomo broker. Among its advantages: positive feedback from traders, a simple personal account (with transaction history, information about the status of the deposit), a convenient functional terminal equipped with the necessary tools, a mobile platform, training materials, many ways to withdraw earnings, professional support. You can get acquainted with real reviews about the Binomo broker, as well as ask questions to traders here.
A detailed review of the Binomo broker is here.
Go to the official website of the Binomo broker here.
In order to buy a
CALL
option in the Binomo trading terminal, follow these steps by going to the binomo.com website and preparing the option, indicating:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: UP
- Click the “buy” button and follow the results.
In order to buy
a PCI
option in the Finmax trading terminal, follow these steps by going to the binomo.com website and preparing the option, indicating:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: DOWN
- Click the “buy” button and follow the results.
Bonuses broker Binomo
The advantage of Binomo is a lot of promotions, which you can find here. Working on the platform with bonuses, the trader not only gets a good chance of high profits, saves his capital, but can also get the most out of trading faster.
Binomo Weekly Tournament
Weekly tournaments of the Binomo site are an opportunity to get real money for free. Such tournaments are held on Thursdays, traders with any experience who have a Binomo demo account can participate in them. The main prize, which is awarded to the winner with the highest profit during the tournament, is options worth $150.
Participate in the Binomo tournament
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