Two Moving Averages

What is needed in order to make a prediction for binary options ? I have to say it is the power of everyone ! All this would require is a high class trading platform and the two moving averages. And that the trading was not just a game, and could generate your income in the form of real money, you will need some money, although,  the market now offers free trading on the stock exchange with a of free binary options, so the last item can be completely eliminated.

The best indicator for the forecast – The Moving Averages

The Moving Average is a technical indicator that shows the average price of an asset for a specified period of time. Simply put, the indicator takes the average price on the chart depicts the average value of an asset in the form of a line. This makes it possible to obtain data for subsequent motion prediction assets quotations in a more convenient form than the chart of quotations from the chaotic movements. The direction of the moving average motion is essentially is a forecast for binary options, which can be effectively used in open contracts. If the moving of the indicator is pointing downwards – this means that the average price quotations have negative values, so it is necessary to issue contracts to reduce the value of the asset. Conversely, if the moving average is directed upwards – this means that the average price of an asset for a given period is positive and should conclude contracts UP.

– it allows you to optimize the trade signals in trading system. This combination of indicators with different periods is able to show how the correct data each indicator gives separately. Thus, the trader is able to determine the optimal point for processing the transaction:

two moving averages

When installing two moving averages on the chart we get a convenient work space to operate and profit :

set two moving averages

Thanks to these unique features, such as: flexibility, accuracy, ease of use and convenience, the Moving Average, you can safely assume, is the best technical indicator for trading in binary options. With this indicator, you can make the most accurate prediction for binary options and use it to make a profit, and this will be a steady income, which is very important for the performance of any trader. This high rating indicator moving average is not an empty phrase. It is known among the professional traders that the Moving Average indicator have earned more money than the rest of all technical indicators combined. We agree, this is a good assessment of its work, it is not only an indicator of popularity, but also about of effectiveness. That’s why it is called the best indicator !

Let us now move onto the practical application of a moving average indicator and look at how it can be used to make a projection of binary options, as well as how to apply the two moving averages to predict the direction of movement of the asset quotations.

So, to apply technical indicator to our quotes assets, we would take a trading platform from Binomo broker, where the Moving Average is included in a standard set. During the build of the moving average, set the indicator to “50”, and for the second period of the build, set the indicator at “5”. The graph of quotations shows two lines or moves of indicators. You can immediately see that the data lines on the chart are constantly crossing each other. This is the signal for opening of trading positions. The indicator shows the direction of  further quotes movement. All that is left for the trader is to get the following forecast for the binary options as an intersection of two moving averages and execute a contract in the direction of their intersection. I.e:

  • At the intersection of Moving up the contract UP option opens :

up option

  • At the intersection of Moving down the contract DOWN option opens:

down option

If you rewind a little history of quotations, you will notice that the price behaves this way in 80% of cases. Crossing of Moving Averages indicator in either direction fairly clearly signals about the continuation of price movement of quotations in the intersection direction. Therefore, the trader has at his disposal a stable working tool of analysis and market forecasting.

Having dealt with the indicator and its trading signals you may have only one problem. This is the choice of the trading platform, where it is possible to apply best indicator for options – the moving averages indicator to the chart quotes .

To create this article we used a Binomo broker terminal , which, in our opinion, is the best web terminal for binary options where you can use two moving averages and get with their help the most accurate prediction for binary options. This trading platform has everything you need for a successful increase in your trading account !

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