The Pocket Option broker offers a wide range of tools that allow you to trade binary options using various strategies . But, as practice shows, it is better to start trading with a demo account. This tool is also available on Poketoption. Here you test your chosen strategy without risking your own money. After this, you can move on to real trading on Pocket Option. Beginners who have not previously worked with binary options are recommended to start trading using a strategy using moving averages.
Also, do not forget that you can start trading with additional funds by using promo codes for replenishing your account from the Pocket Option broker, and to improve your performance with this strategy, you can use a promo code to cancel a losing trade for $10 .
What are Moving Averages and how are they calculated?
SMA, or Moving Averages, appeared several decades ago. But despite this, this indicator is still used by many traders. On the screen of the trading terminal, the SMA is displayed as a smooth line that passes through, above and below the price chart.
At first, the indicator was used in the stock market. Later, this instrument began to be used when trading other financial assets. The SMA line is drawn based on the average closing prices of several candles in a row.
Let's say that in the settings of the Poketoption trading terminal the period is set to 20. This means that the closing prices of 20 candles (bars) were used to calculate the Moving Average. The next indicator point is determined with an offset. That is, the first candle is not taken into account, but the 21st is taken into account.
To set the SMA period, you need to go to the corresponding section, open the “Active” tab and click on the pencil icon located opposite the indicator.
Rules for trading in Pocket Option using SMA
A strategy based on SMA is suitable for trading turbo options on Pocket Option. Despite the high risks associated with this system, it allows you to significantly increase your income in a short period of time.
To trade within this strategy, you will need to select 2 Moving Averages with a period of 60 and 4, respectively. To distinguish the lines, it is recommended to select different colors for them. The timeframe for this strategy should be set to 15 seconds, and the contract expiration time should be no more than a minute.
Operating within the framework of the described system, the Call option must be purchased if the moving average with a period of 4 has crossed the SMA with a period of 60 from bottom to top.
Transactions with Put options are made in the opposite situation. Such contracts need to be bought when the moving average with a shorter period crosses the line with a larger one from top to bottom.
Using 2 SMAs, you can make quite a big profit in trading fast contracts. However, due to the short time frame, signals will arrive very often, as a result of which some of them will turn out to be false. Therefore, when using the described strategy, you need to be guided by the principles of money management and do not forget to use the Martingale method.
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See also:
Pocket Option Broker Platform for Windows
How to use social trading with the Pocket Option broker
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