3 Moving Averages Binary Options Strategy

This binary options strategy uses one of the most popular trading indicators: the moving average. The strategy is very simple to understand and to the trade with clear rules for buy CALL and buy PUT trading signals.

Chart Setup

Binary Indicator: 3MAFan
Time Frame: 1 minute, 5 minute
Trading sessions: Any

Tradable Instruments
Currency pairs: Any
Commodities: Any
Stocks: Any

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Download the 3 Moving Averages Binary Options Strategy

GBP/USD 1 Min Chart Trading Example

3-moving-avearges-binary-options-strategy

As shown in the 1 minute British Pound/US Dollar chart above, the 3 MA strategy produced 4 buy PUT winning trades. Read the rules below. Click the picture to enlarge.

Trading Rules

Buy CALL Option:

  • Blue MA crosses the yellow MA from below (bullish trend)
  • Light blue MA crosses the yellow and blue MA from below

Buy CALL Option (trend re-entry):

  • Blue MA must be above the yellow MA
  • Light blue MA crosses back above the blue MA from below

Buy PUT Option:

  • Blue MA crosses the yellow MA from above (bearish trend)
  • Light blue MA crosses the yellow and blue MA from above

Buy PUT Option (trend re-entry):

  • Blue MA must be below the yellow MA
  • Light blue MA crosses back below the blue MA from above

Expiry Time:

5 candles (5 min for 1 minute chart / 25 min for 5 minute chart), or choose the nearest expiry time.

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