Trading strategy on the indicator Stochastic Oscillator

Experienced traders know that the most information on trading in binary options can be obtained from the Stochastic Oscillator indicator.

But what is its focus? This indicator responds with lightning speed to fluctuations in the moods of the asset market and just as quickly it displays on the chart of quotations.

And although some indicators may do it late, but not the stochastics. The principle of operation of my strategy is built on the indicator Stochastic Oscillator, which is already a guarantee of its profitability and makes it unique.

If you still do not know how to use the indicator in order to earn money, then I wrote this article for you!

Trading strategy on the indicator Stochastic Oscillator

Trading rules

To trade according to my strategy, you will need a quotation chart on which you can apply technical indicators. This is possible using a free platform.

You also need a reliable and at the same time suitable binary options broker who would always provide you with only the most accurate quotes, offer a good selection of not only assets, but also options, and also derive profit without any problems. Based on such requirements, I chose a broker for myself.

Next, after choosing the quotation chart for technical analysis of the asset market, you need to enable the M5 timeframe and apply Stochastic to it with the following parameters: 21.9.9.

This indicator will work as a filter. In addition, we also put a “stochastic” on the quotation chart with the parameters: 9.3.3 - its function will be to display short-term trend changes.

Your quotation chart will look like the image below:

Trading strategy on the indicator Stochastic Oscillator

How to trade and earn money?

To conclude transactions UP, you need:

  1. In order for both indicators to be in the oversold zone, which is below the level 30
  2. The fast lines of both Stochastic crossed upwards slow lines

When these signals occur, wait for the new temporary candlestick to open and open a trade for a raise (UP):

Trading strategy on the indicator Stochastic Oscillator

To conclude deals DOWN, you need:

  1. In order for both indicators to be in the transfer zone of captivity, which is located above the level of 70
  2. The fast lines of both Stochastic crossed from top to bottom the slow lines

When these signals occur, wait for the new temporary candlestick to open and open a short trade (DOWN ):

Trading strategy on the indicator Stochastic Oscillator

Suitable options for trading

I use my broker’s turbo options and regular binary options. For trading using common binary options, on the chart of asset quotes you need to set the M5 timeframe.

In this case, binary options transactions should be opened using an expiration period of 15 to 45 minutes (depending on the asset that you have chosen to trade).

If you switched on the quotation schedule on the M1 timeframe - you should choose turbo options, and at the same time set the expiration time for 300 seconds.

The level of profitability of the strategy

My trading system brings profitability in the range from 65% to 80% of profitably completed deals out of the total. And this ensures a steady growth of your deposit. That is, in a month you can add from your deposit from 60% to 100%.

MANAGEMENT

When trading through the system, do not take risks and take precautions. Namely - use 2% -4% of your deposit.

Personally, when I started trading, I didn’t have a large capital, so I chose a Binomo broker, since his minimum amount to replenish a trading account is only 10USD, and Binomo’s minimum transaction is only 1USD .

Therefore, I was able to start trading binary options almost from scratch and after a not so long time I increased the size of my depot at times!

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