Tuesday, June 10th, 2014 by Tim Lanoue
When it comes to finding an effective 10 minute trading pattern for binary options that doesn’t require the use of many trading indicators or complex set-ups I personally know from my own experience how difficult it can be. Especially when you are completely new or have only a few months worth of knowledge, which is why today I am going to provide a very simplistic yet highly accurate 10 minute binary options trading pattern. One of the best advantages about this 10 minute trading pattern is that it only requires the use of two indicators, both which are the same type of indicator, a simple moving average.
What are Moving Averages?
Moving averages are an indicator category that represents the average price of an asset of a selected period of time. For example, these time frames that moving averages can be set on are called periods, periods are a selected duration of time. So if you have your indicator set at a period of 10 it is set to display the average price of that asset over the past ten days. If you have a period of 3, then you are seeing the average price of that asset over the past three days and so forth down the line. There are three types of moving averages and they are: front weighted, exponential, and simple. The type of moving average that we are using today in this pattern is simple, and they both are set at a period of 3 and 10.
Setting up this trading pattern is almost as simple as trading with it. First you need access to a charting solution such as Free Stock Charts or MT4, personally I prefer www.freestockcharts.com just because it is easy to load and get everything setup. Since this is a ten minute trading pattern we want to make sure that the time frame that we are watching our asset is set for 10 minutes and we want to use this pattern solely on currency pairs. Any currency pair will do and I prefer to use this trading pattern during the New York trading session. All trades placed as well have an expiry time consisting of 5-10 minutes.
Applying the Trading Pattern
In the picture below you can see an example of how this trading pattern would look, as you can see we have our two moving averages, the correct time frame and a currency pair. The simple moving average line that is set at a period of 3 is our signal line, whenever this simple moving average line crosses with our other moving average line we place a trade in the direction that the yellow line is heading. So if it crosses our blue line in an upward direction we place a 5-10 minute CALL trade and vice-versa for the other direction. As you can see below 7 out of 9 trades placed were winners, resulting in a 77% in-the-money.
Extra: If you are a beginner you should always test your skills with a FREE Demo Account!
This trading pattern is one if personally designed mostly for novice traders but it can be used by traders of all experience levels, I have seen a consistent success rate of 72-79% over the last few of weeks when trying this pattern. As always if you have any questions please feel free to leave them below and I will make sure to answer them for you! Good luck and happy trading guys!