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Home / Best binary trading options strategies / Binary options strategy guide — Intersection of Moving Average Lines

Binary options strategy guide — Intersection of Moving Average Lines

«lntersection of moving average lines» is а very popular method of analysis among traders of different skill levels and a part of binary strategy for profitable earnings. One of the possible options is to add three exponential moving average lines (ЕМА) with а period of 6, 14, and 26, but these parameters may vary depending on traders’ preferences.

How to select the Exponential Moving Average line (ЕМА) (for this example ЕМА lines with а period of 6, 14, and 26 were selected)
iq-option-emaIn this example, the ЕМА line with period of 26 (the one with the highest period) is а trend line. The intersection of ЕМА lines with periods 6 and 14, in certain circumstances, is а signal for some traders to enter the market.

There will be three exponential moving average lines formed on the price chart:

Blue line — the most flexible one. Traders follow it the most.

Yellow line — middle line. When the blue line intersects the yellow line some market participants consider it as а signal to buy CALL/ PUT option.

Red line — the least flexible line. This is а trend line.

moving-average iqoption

In case of the following pattern:

  • Blue ЕМА line is above the other lines;
  • Yellow ЕМА line is below the blue line;
  • Red ЕМА line is below the other lines,

some traders consider the intersection of blue and yellow lines as а signal to buy а PUT option.

moving-average iq option

In case of the following pattern:

  • Blue ЕМА line is below the other lines;
  • Yellow ЕМА line is above the blue line;
  • Red ЕМА line is above the other lines,

some traders consider the intersection of blue and yellow lines as a signal to buy a CALL option.

On the issue of selecting a broker with the necessary parameters, we offer a professional recommendation. The most effective and professional platform in the binary market today is considered the IQ Option broker’s platform. Here, the market participant receives the most optimal set of trading services.

Go to IQ Option

General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose. 

TOP 10 BINARY OPTIONS BROKERS

Binary options strategy guide — Intersection of Moving Average Lines updated: February 26, 2018 author: admin

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