Trading Signals For «STOCH» Binary Options

One of the main issues that stumble upon many beginning traders – where to get the trading signals that would really bring profit ? There are several ways ! You can subscribe to the signals given by different specialists. But there is no guarantee in their accuracy, as well as in skills of the analyst who shares them.

The second method is a bit more complicated, but it gives the confidence in the correctness of signals that can be used for a future profit. The way is to create them by yourself. But how to do it correctly ?

 

Development of  «STOCH» trade signals

For over 50 years, the Stochastic indicator has been used on financial market to predict price movements. Its high popularity is due to the incredible accuracy of the input signals for contracts processing. The professionals use these signals at exchange trades, converting them into multi-million dollar profit fortunes. Nobody stops us to take an advantage of this precision indicator to develop own trading strategies for binary options. Along with this, we  have our confidence in their accuracy and correctness, as will obtain them in our own trading system.

Before we move onto the trading system, based on the Stochastic indicator, let’s choose a broker to trade on the options market with. We need, first of all, a reliable company where we can fully take an advantage of these trading conditions and services:

  1. The absence of slippage when placing orders (allows registration of contracts in exact places at the best prices)
  2. Having the opportunity to sell the smallest volume – from 1 USD (it helps to reduce possible losses in complex market areas, as well as the load on the commercial capital)
  3. The standard size chart quotes for easy tracking of trade processes and visualization levels of transactions executed on the chart (this allows the use of additional systems to increase trade efficiency)

As an example, for a brokerage company that fully meets the requirements, you can consider a Binomo broker.

At the Binomo’s terminal, we will make our contracts in binary options, and for the strategies signals, we are going take the live quotations of  tradingview.com service, where we will set our technical indicator. To configure the work space we must:

1. Open the site tradingview.com and on the main page, in the search engine field enter the name of the trading asset that is the most desirable for you in options trading (a good example – the currency pair EUR / USD):

tradingview.com

2. After that we get a quotations graphs screen. Now we set the time frame as M1 (1 minutes):

set the time frame as M1 (1 minutes)

3. Then put 2 Stochastic indicators on the graph

put 2 Stochastic indicators on the graph

4. There are 2 windows of our technical indicator Stochastic that appear under the graph. They need some adjustments. For the first one set the parameters to 21,9,9; for another – 9,3,3:

Trading and trading signals of «STOCH»

At last we are going to the signals of the strategy. For ease of analysis, let’s place the Binomo trading windows next to a technical chart:

 

Trading and trading signals of «STOCH»

Trading signal is UP:

  1. The intersection of signal MA indicator Stochastic (21,9,9) the lower level up oversold
  2. Stochastic (9,3,3) display signal lines are crossed up

Trading signal is UP

Once we identified such signals at the technical chart, we go to the Binomo terminal and open the UP position.

Trading DOWN signal:

  1. The overcrossing of signal moving of indicator Stochastic (21,9,9) of upper overbought levels down
  2. The lines crossed down in the Stochastic (9,3,3) indicator

Trading DOWN signal

We identified such signals at the technical chart and then go to Binomo terminal, to open the DOWN position.

These are fairly simple signals received from our two Stochastic indicators, that allow us to purchase at least 70% of the items that will bring us a profit.

 

Type of options and the expiration dates for  transactions on «STOCH» trading signals

The best kind of options for trading the signals «STOCH» systems are simple binary options available on the Binomo terminal with the expiration dates ranging of 15 – 30 minutes.

 

Money management

The productivity of «STOCH» system is quite high, during just of one hour there were 2-3 trading signals that can be used for a profit. But to minimize the risks of the trading implementation, you should use no more than 2% of your trading balance. If the deposit amount does not allow to follow such rules of money management, you can run the transactions at minimum trading lots, which the Binomo broker has, starting from 1 USD. Doing so, you can trade with the «STOCH» system with a deposit of just $10 !

 


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