10 Minute Trading Strategy for Newbies
Trading in the world of binary options can be a fairly difficult thing to do. Depending on the strategy you use to make profitable trades, it can take a lot of set up time as well as the use of complex indicators. This can make understanding what you are trying to do very hard. However there are some pretty simple trading strategies out there, ones which don’t use many indicators and need minimal set up time, one of which is this 10 minute trading strategy.
The Moving Average
This 10 minute trading strategy only requires you to use 2 indicators, both of which are the same type, which we know as the moving average. Now, there are 3 types of moving averages, the front weighted moving average, the exponential moving average, and the simple moving average. For this 10 minute trading strategy you will be using the simple moving average indicator.
A simple moving average just shows you the average price of an asset for a given time period. You can set the time period to 10 minutes or even 10 days, and of course everything in between too. For example, if you set the period to 5, the indicator will show you what the average price for that asset was for the past 3 days.
The first thing that you will want to do is to go to a free online charting solution like MT4 or Freestockcharts.com. You will want to keep an eye on currency pairs, and since we are doing 10 minute trading, you will want to focus on how they have done in the last 10 minutes. It is up to you to choose which currency pair you want to use. Now, remember to set your simple moving average indicator to 3 and 10 respectively.
The 10 Minute Strategy In Motion
Ok, so now you have your 2 moving average lines, one of which is set to 3 days, and one which is set to 10. At this point you should have your 2 moving averages, the currency pair, and the 2 correct time frames. The one moving average line you have which is set to 3 is going to be your signal or indicator line (should be yellow in color). Whenever this line crosses the other line, the one set to 10, you are going to place a trade.
The trade you place has to be in the same direction as the yellow line is moving. If the yellow 3 line crosses the blue 10 line going upwards you are going to place a call trade, and if it crosses the blue 10 line going downwards, you are going to make a put trade. The average winning rate for this 10 minute strategy is between 72 and 79 percent, with an average of 7 winning trades for every 10 trades placed.