It seems like every couple of days I am asked in the chat room what my settings are on my charts. I want to document them here for anyone that is interested. I have 8 different strategies and not all indicators are used for any one strategy but I have all up at all times to help me determine which strategy to deploy. I will point out that I only use these settings on forex trading, They have not been tested on any other binary options.
First I use a 5 minute bar and prefer to use bars instead of candlesticks.
I use three moving averages (ma). The mas in some strategies allow me to identify trend and the averages themselves can help determine some quasi support and resistance levels. My three settings are a simple moving average (sma) of 50, and exponential moving averages (ema) of 13 and 26. For those that have read the “dog” forum you will recognize them. I place all credit to using these to that forum.
The next indicator that I use as stochastics. I use stochastics as it as indicator since it it Follows the speed or the momentum of the price. It also shows if the buy or sell sediment is stronger and if a position is over bought or over sold, indicating that there may be a risk of a reversal. The stochastic settings are 14,3,3
The MACD is the next indicator that I use with settings of 12,26,9,C. The MACD is another momentum indicator that shows the convergence and the divergence of the buying and selling strength. And indicates when the sediment has changed.
Volume is used as a thrid level indicator as the final go no go decision. I have found that for my strategies to be successful there are minimum volume levels of trading needed on a forex pair to make the signal credible I draw a line at the 2500 level.
All of the indicators I have mentioned so far, are trailing indicators. That is they are based more on reporting of the history of where the price has been.
The final indicator that I use is momentum. I use a setting of 15c. Momentum is a leading indicator, meaning that it tends to suggest the price direction.