TRADING INFORMATION PROVIDED BY MOVING AVERAGES

TRADING INFORMATION  PROVIDED BY MOVING AVERAGES

Moving averages provide vital information in BINARY OPTIONS TRADING  and they help generating important signals in carrying out profitable trades .The following information is provided by moving averages : signals ,zones ,strength ,cycle

GENERATING SIGNALS

1)The position of price relative to moving average

If the price move above the moving average ,it is a BUYING SIGNAL (CALL) .If the price move below the moving average ,it is a SELLING SIGNAL (PUT)

2)The relationship between short and long moving averages

If the short moving average crosses the long moving average from below ,it is  a BUYING SIGNAL(CALL).If the short moving average crosses the long moving average from above ,it is a SELLING SIGNAL (PUT)

IDENTIFYING ZONES

If price line is above the moving average , it is a BUYING ZONE .if price line is below the moving average ,it is a SELLING ZONE .

If the short moving average is above the long moving average , it is a BUYING ZONE .If the short moving average is below the long moving average ,it is a SELLING ZONE .

The angle of the moving average also gives the zone –if the angle is UP, it is a BUYING ZONE ,If the angle is down , it is a SELLING ZONE

STRENGTH OF THE TREND

If price spend more time above the moving average , it is a strong BUY SIGNAL

If price spend more time below the moving average ,it is a strong SELL SIGNAL

If the price is moving away from the moving average ,it signals a strong trend

If the short moving average is moving away from the long moving average , it signals a strong trend

Conclusion

Moving averages provide valuable information for BINARY OPTIONS TRADERS

HAPPY TRADING