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Binary options ema strategy

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For this strategy to be most effective, binary options traders are encouraged to use the crossovers of the 5MA with the 20MA in order to find potentially profitable trades. Whilst it would be ideal to be able to enter the market before an initial move up or down, a quick look at any price chart will show you that price will often stay consistently above or below the entry price as the options expire in the money.


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    • Remember, unlike forex trades, we are not looking to find the perfect entry in order to gain as many pips as possible but only for the price to remain above or below the entry price until our options expire. Some important factors to take in to account when trading an MA crossovers include choosing the correct time frame.

    Applying the crossover strategy to binary options

    Whilst the sixty second binary options may be the most exciting option, this strategy works best with the higher time frames such as the 30 minute or 1 hour charts. Additionally, waiting for a confirmed crossover will mean waiting for the previous bar to close before purchasing options in the direction of the crossover.


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    For the second part of the question, as I have said in some comments there is nothing standard about it. You should make your backtest, you should make your paper trades and see which settings fit better to your strategy. I could tell you which settings fit to my strategies.

    How to use EMAs

    MAs are more focused on the past. So, how can you use the EMAs? In this chart I have 2 EMAs. A green one with 4 periods and a red one with 8 periods.

    Binary options exponential moving average

    I use these settings only in 1min chart and mainly in 60 secs trades. Once the EMAs move, price breaks above or below the trend line, providing a basis for Call or Put entries respectively. The expiry for this trade is 2 candles, which is equivalent to 30 minutes on a minute chart. Many platforms have expiry times of 30 minutes on their charts by default. It is also possible to close the trade manually when it is in profit for a reduced payout.

    3 EMA Crossover Trading Secrets For Any Market - iq option strategy

    The trade should last only 2 candles, which is equivalent to 30 minutes. It is also possible to opt for the early closure when the trade is in profit. This however produces a lower payout.

    EMA indicator – How to use and trade it in IQ Option

    The Price-EMA. The only drawback with this indicator is that the signals do not form very regularly. However, it is still a good strategy to use if the rules can be followed to the letter.