Best Binary Option Trend Indicator

CCI MA Trend Follow Means for Binary Options Trading

A basic definition of any trend is really a quotation’s general position in accordance with its average values. That’s why the MA indicator is absolutely indispensable in determining the current trend. Unfortunately, the moving average won't show traders what point is ideal to type in the deal towards the tendancy direction. Involving this purpose many traders utilize CCI oscillator.
A short outline of methods of moving averages and the applications is included inside the explanatory video relating to the indicator, located inside the MA settings window on the IQ Option platform.
As well as the video, we inform you about common strategies, using many kinds of moving averages along with indicators involved, with clear and brief explanations from basic to advanced levels.
The purpose is simple – to work out a trend making use of the moving average, enter with a basis of crossing the +100 a higher level the CCI indicator curve.
Indicator settings

The three following questions arise when organising any trading system :

1. Work timeframe ;
2. Indicator settings (indicator period, curve type to be taken inside the strategy) ;
3. Time to carry the order (option expiration) ;

Many issues arise regarding the selection of the moving average type. It is held to be that principle moving average gives plenty of false signals on flat sections, and other styles diverge inside the presence of weight coefficients, giving the newest data greater importance. The overall winner is that the exponential moving average, where influence while using nearest average values grows exponentially.

Natural selection has decisively resolved any disputes upon the usage of moving average investor periods of 50, 100 and 200. They're utilised by analysts in reports and for this day they're set inside the trading platforms of portfolio managers. Let’s make an easy moving average which has a period of 50 inside IQ Option trading platform :

SMA settings. Period = 50
Indicator settings are directed to identifying a trend – CCI with period 14 and SMA with period 50 :

CCI (14) and MA (50) on trading chart

Upward trend

The signal relevant to an upward trend’s inception is provided by a candlestick crossed and closed above the SMA line. CCI readings ought to a lot greater than 100. The figure below shows the features of upward trend inception : price crossing the moving average and quotations closing above the line (1).
Just keep waiting before CCI indicator shows a valuation on 100 or above (2). In that method traders prefer to order options 3-4 candles ahead.

Downtrend

In situations We're preparing to order a Put option, It's reasonable to have to wait to the congruence of quotations crossing the SMA line top-down, with the worth of closing the candlestick below this line and CCI decreasing with readings below 100, as shown inside the figure below. The intersection of quotations with SMA took place earlier on, so we don't enter.
Anticipate CCI to fulfill the right condition, see it in point 2, and hold for three timeframes (3).

The task of subsequent purchases of binary and turbo options within this trend is performed as follows. One intersection equals one trend ; thus, despite on account that point 4 on the situation inside the figure above depicts the difficulty of actually finding quotes below SMA and newly appeared CCI signal below 100, which beforehand rose above that level, we don't enter this position here.

Indicator periods
Do you find it possible to scale this trading method on various timeframes? The classic method involves the approval of CCI + MA methods on daily candlesticks. For the smaller timeframes, we replace the period on the moving average : for 4-hour candlesticks it'll be 100, for 1-hour and below – 200, the CCI indicator stays at the very same 14 period. If you wish to experiment, don’t look into values with this period above 24.


Novice traders try to uncover best values for indicators and systems via brute force or by searching in literature. They're Not alone as subject, as investment institutions give similar tasks to mathematicians, the designers of cutting edge indicator 

Also read: IQ Option Alligator strategy
The grail has never been found. There exists already a powerful idea of the existence of cyclical changes out there, but their parameters are constantly changing. To reflect these changes precisely still is impossible, as thereby to link their functional dependency to something and thus make a transparent prediction. To find the best possible analysis, utilize period values due to books of trading classicists, like they usually work consistently with the market industry cycles.
 Learn too IQ Option trading strategy

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