Working as a trader, it is important for you to use reliable tools: proven indicators, profitable strategies; Everything that will bring a good profit. Therefore, finding new trading solutions is a must for you if you are going to work seriously with options; And yet, do not forget to work with those tools that have already been tested and recommended by professionals.
The “EMA + MACD + RSI” strategy is just that, it is based on simple and understandable oscillators, it will become your reliable weapon in options. Thanks to this trading system, you can get a stable income: using the strategy correctly, you will receive an income of more than 83%. So, a proven trading system will bring you closer to the goal of a stable income in trading.
Learn how to use the EMA, RSI and MACD as a single system for trading binary options, and it will give its results.
The chart for the options strategy ” EMA+MACD+RSI” is as follows:
This strategy uses smart indicators: EMA, RSI, MACD. To get a good result from trading, you need to make the following settings.
Strategy parameter settings
- EMA – the strategy requires two exponential moving averages (EMA), 1 – the period is 7; 2 – the period is 26;
- RSI — the period is 14;
- MACD – you will need moving averages with parameters 12, 26, 9.
Being sensitive to market dynamics, collectively, these oscillators generate accurate signals.
Most traders work in the MetaTrader 4 trading platform (download), which allows not only to test strategies for free, but also to easily install the necessary indicators and trading systems. You can read a simple instruction on how to install oscillators in the platform here.
Strategy expiration settings
Working according to the strategy with the proposed parameters, you will get the ideal ratio of quality signals.
In this trading system, an expiration of 1 hour is required; You can also try it on other time periods, in particular, as a scalping strategy. Choosing a strategy for more than an hour, you will get fewer signals.
What assets to trade on?
It is allowed to trade any assets of your choice, but it is better to work with currency pairs; Signals on cross currencies and pairs will be of high quality.
So, you can open more than 15 trades per day and get a good profit. If you are a professional, you can take advantage of more than 40 signals.
Receiving signals by strategy
So, you have added all the indicators to the chart, now you can analyze their data.
Note! Trades are opened when all conditions are met.
RSI Signals
Oscillator values range from 0 to 100; That is, the readings do not rise above the 100 mark and do not fall below the 0 mark. The most important signals for traders are the 30 and 70 marks:
- When the RSI line is above the 70 mark, an indicator of strong demand for the asset and overbought, its price will soon fall, this is a signal to buy a put option (down);
- When the RSI line is below the 30 mark, an oversold indicator, that an asset is selling a lot, its price will soon rise; this is a signal to buy a call option (up).
MACD Signals
Take a look at the figure below: the exact MACD signal is shown. When the moving oscillators are located in the lower zone, we have a signal of an early change in the direction of the price. When the price indicator has entered the lower zone, it is necessary to wait for the intersection of the average MACDs:
- If the intersection of the averages occurs in the lower zone, this is a signal to buy a call option;
- If the intersection of the averages occurs in the upper zone, this is a signal to buy a put option.
EMA signals
These signals will be the last to open a trade. The moving average with a period of 7 is different in that it is fast; A moving average with a period of 26, on the contrary, is slow, showing deviations from the price:
- If the moving average with a period of 7 crosses the moving average with a period of 26 from top to bottom, the price will go down, this is a signal to buy a put option.
- If the moving average 7 crosses the moving average 26 from the bottom to the top, the price will go up, this is a signal to buy a call option.
Time intervals for analysis
The analysis of these indicators should be carried out on three timeframes (time intervals):
- The first interval will be the most important: 4 hours, it is on it that the main price movement is determined;
- The second interval, 15 minutes, we trade according to its signals;
- The third interval, 5 minutes, is sensitive, allows you to see in advance the formation of a signal in the interval of 15 minutes and prepare for the transaction in time.
Note! Trades should be opened in the direction of the 4-hour trend.
How to open trades according to the strategy?
To make it easier for you to work on the strategy, make a table where you can mark the indicators of the indicators:
As you can see in the table, there are two indicators that do not correspond to the rest of the data, so you will not be able to confidently assume that the transaction will bring income.
And another situation, all the data of the oscillators clearly indicate one direction, you can open a deal to buy a call option:
Note! You can make money on the strategy by complying with all the conditions. If at least one does not match indicatively in the table, you cannot open a deal. If this rule is followed, the trading result will be more than 83%; Of the 40 open positions, 33 made a profit.
Starting to trade according to the strategy
When you have learned how to trade in this strategy, as well as what your results can be if all the conditions are met, you can start trading, for which you need:
- Choose a reliable broker, to do this, study the current rating of brokers;
- Draw a table to track these indicators (draw a table by hand; you can also make it in Microsoft Excel);
- Analyze the chart data and mark the readings of the instruments in the table;
- After receiving the results, go to the broker’s platform and open a trade.
EMA, MACD and RSI strategy at Olympus Trade
In order for the EMA, MACD and RSI strategy to give you a stable income, work in the terminal of a trusted broker Olympus Trade. The modern trading platform has the functionality necessary for comfortable trading: with a convenient personal account, analytics, indicators (MA, Parabolic SAR, MACD, RSI, Stochastic and Bollinger bands), a choice of expiration (from a minute to an hour), the ability to test strategies, use market reviews and an economic calendar. Get acquainted with the current reviews about the broker Olympus Trade here. You can see what the terminal workspace looks like in the image below.
A detailed review of the Olymp Trade broker is here.
Go to the official website of the broker Olymp Trade here.
In order to buy a
CALL
option in the Olymp Trade trading terminal, follow these steps by going to the olymptrade.com website and preparing an option by specifying:
- 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 Olymp Trade trading terminal, follow these steps by going to the olymptrade.com website and preparing an option, indicating:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: DOWN
- Click the “buy” button and follow the results.
Start trading with Olympus Trade
Read reviews about Olympus Trade
Bonuses of the broker Olymp Trade
Working with Olymp Trade is especially profitable, the broker offers its users constant promotions and bonuses. Thanks to the bonus prize funds, the trader can trade even more on the site without risking his capital. Now the broker has a particularly popular welcome bonus that doubles the deposit, which is offered to all newcomers to the platform who have replenished their account within an hour after registration.
Findings
The “EMA + MACD + RSI” strategy is quite simple in settings and operation, it will increase your results.
When trying your hand at trading, regardless of whether you are a beginner or a professional in options, always improve your knowledge, work with proven strategies, build your own based on them. Only with this approach will you find a stable income and success in trading.
Tagged with: Binary Options Strategy
