Monday, August 24th, 2015 by Ashraf Moos
Welcome Traders, This is Ashraf I am one of the top traders at Mike’s Facebook group. Many traders in the group follow my trading patterns and I decided to keep posting content for Mike and his website visitors. Today I will go over my Binary Options Swing Trading Pattern. First, this pattern is designed for hourly, 4 hours and end of day expiries. Do not use any of the tactics with short-term expiries and always test a new method or pattern using a free demo account as Michael Freeman suggests, especially if you are a beginner.
Disclaimer: This pattern was first posted on Investoo.com and a few blogs but Ashraf gave it his own touch. I encourage you to watch his unique video on this topic that’s posted on my channel.
The goal of this Swing trading pattern and method is practice is to take advantage of the market price swings. We use this method of trading only during high volatility conditions as a prerequisite.
THE INDICATORS: For the most part, we’re going to use the Bollinger Bands in order to determine the market direction and condition with the default settings.
MACD with settings of 3,11,16. As you can see, we are using an aggressive setting for the MACD Indicator in order to evaluate when the momentum starts.
SMA – Simple Moving Average is set at a period of 3 which will be our trigger!
THE RULES AND CONDITIONS
CALL SETUP: Price breaks above the middle Bollinger Band. The 3 period SMA breaks above the middle band. The MACD turns positive.
PUT SETUP: Price must break the middle Bollinger Band downwards. The 3 period SMA breaks below the middle band. The MACD turns negative.
EXPIRY TIMES: Trading off the 15 minute chart = one hour expiry. Trading off the 1 hour chart = 4 hours to end of day expiry.
Watch my complete video on the Binary Options Swing Trading Pattern for a complete illustration.
I also encourage you to check out my article titled ‘PSAR and ADX Combo Trading Pattern‘. Let’s sum it up, Swing trading is widely covered and used by binary options and FX traders but many times they don’t get the setting and the combination of indicators right. After using my Swing method for a very long time I can testify that my setting for the MACD, Bollinger Bands and SMA can provide you with some amazing trading opportunities. I also encourage you to check out some of the previous articles I’ve written for Mike and videos on Mike’s Binary Options YouTube channel. If you have any questions you are welcome to comment below this article and I will respond and also below the video on YouTube. Good luck with your trading and again, remember to test every binary options trading pattern using a demo account before you trade using a real live account. If you are interested to get professional signals from the admins and top traders at Mike’s Facebook Signals Group, you need to join us!!! We’re doing amazing and generate many signals on a daily basis, free binary options educational sessions and live webinars. Good luck with your trading!