MA Candles Binary System For MT4
Table Of Contents:
Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.
The MA Candles Binary System For MT4 is a premium momentum-based trading method. The method can be used as a scalping strategy as well as a long term trading method. The long term trading method requires wide stop loss but the scalping method requires tight SL.
You might be thinking the long term trading method is risky but the scalping method is much more aggressive in real life trading. Color fill MA, MA Candles Two-color, Gold Indicator, and RSI MA is used as an indicator. This system can be used to trade Forex, CFDs, equities, stocks, and indices. But the rules are slightly different when you get involved with the volatile market like stocks and indices.
After installation of the template, the amateur might get confused by seeing the complicated settings of the chart. But the steps are very easy to remember and you can make a decent profit with this method. Most importantly. Being an active trader, you won’t have to focus on overtrading to earn more money. Lets explore the steps for call and put options with this MA candle based system.
Call option setup
For our long entry, the first thing that we need to notice is the top right corner of the chart. Minimum three green arrow marks should be there to proceed to the next step. Let’s say, we have three green arrows at the top right.
Enable the chart shift option from the properties of the chart so that you can see the pivot level. The price will break above the layer of bands after forming a bullish arrow mark on the bottom. Still, we have to wait for the price to drop to the pivot level. The aggressive investors can trade at the pivot level if it matches with the bunch of bands. If the position of the bands is near the MS1, S1, or MS2, we have to wait for the price to drop at that level.
Since it is a retracement based entry technique, the use of pin bar, bullish morning star, engulfing pattern comes very usefully. You don’t have to learn all the techniques of price action to improve your trading method.
Just use the mentioned three candlestick patterns to take the call option at the support level. When the call option is executed, we aware of the risk exposure. It should be less than 1% since you don't know which trade will hit the SL.
Put option setup
To short the asset with the MA Candles Binary System For MT4, we have to take advanced of the MR1, R1, and MR2 levels. These levels are the resistance level. Note that you need a minimum 3 downward arrow at the top right of the chart. The downward arrow suggests the momentum is still bearish and you can make money by shorting the asset.
The price must break below the bunch of moving showing bearish authority. After the break off the moving averages, you will notice minor bullish pullback. In some cases, the pullback might extend up to the MR2 level. Take your put option at MR1, R1, or the MR2 level.
So which level is the best place to short the asset? If the volatility is low, the MR1 level is the best. Moderate volatility tells you to take the trade at the R1 level and intense volatility suggests MR2 level for the put option.
Regardless of your execution point, the lot size must be scaled properly. The maximum amount of money you can lose from this trade should be within your comfort zone.
Trading indices and stocks
We have already told the trading indices and stocks are a bit different. To trade Forex, you don’t have to depend on a fixed time frame or fixed expiry period. But the indices and stock market are wild and we have to curate the expiry period based on your analytical chart.
If the analysis is done in the H1 chart, the expiry period should 30 minutes only. This means the max expiry period can determine by diving the analytical time frame with the number 2. The reason to trade with lower expiry period is to lower down the risk exposure. Secondly, you have to care about trading hours.
The price of the indices and stocks are very reactive to the high impact news. If you are taking any trade at a press conference, there is no doubt you will lose money. Historic data shows, most of the time, the market spikes in both directions on such an event. For the safety of your capital avoid taking trades in at such time.
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