Binary options with stochastic
It is also a very well-known tool for technical analysis. The direction of Stochastic oscillator also coincides with the direction of the price movement. Another important indication for us is to find the stochastic in the channel between 20 and This let us know about the existence overbought or oversold asset. We recommend to buy Call option if Stochastic oscillator is situated between 20 and 80 values and it is going up.
Put option buying is good when Stochastic is going down and its value is between 20 and 80 figures. Hundreds of strategies are built exactly at the intersection of MA with different periods, since, firstly, it shows the moment when the market has chosen an unambiguous direction and traders unanimously decided to buy or sell an asset. Secondly, it is very easy to be traced on the chart. We recommend to buy options with an expiration after candles forward.
For example, if we examine the minute timeframe, it is better to choose expiry after minutes. Skip to main content. Our 8 period RSI is not in oversold condition, this is a good sign but we need more. Look at the stochastic. Notice the blue box. In the beginning you will see that the stochastic is moving above level After some minutes dips below level 80 the blue box. This is my confirmation. When stochastic is moving above level 80 and after that dips below is a sell signal for me.
In the second blue box I have an ITM call. We have a reversal in the red horizontal line down which is our support and I took a call when the second green candle in the row was moving above level 20 of the stochastic. This one it was a little bit risky. I have two blue boxes in this screenshot. I took my trade in the second blue box.
Then the price hit again the resistance,for the second time and I took a put and it was ITM. Look at the first blue box. We have a support the red horizontal line which is a whole number,too.