ADX EMA-4Best Binary options (CFD/FX) strategy 

ADX EMA Strategy

I am well aware that many of you expect the fastest possible results and real profits from transactions on Binary Options. So I prepared a brief description of a strategy, which I find not only very effective, but also simple to use. It is based on the combination of two standard indicators available in each analytical program – ADX and EMA. We recommend uTrader, which is a regulated broker in the EU, and has an accounts in many local currencies.

ADX EMA strategy

To use this strategy we will use price charts with a one-minute time frame. The expiration time of the operation as the name suggests will be 60 seconds. As I just mentioned, we use two indicators here:

ADX

ADX (Average Directional Movement Index) – average directional index of movement. This is a standard indicator for the MetaTrader 4 platform. The default period for the indicator is 14 candles (in our strategy it will be 5 candles). The period is working, because the more investors see the signals, the better because of the accumulation of purchasing power.

ADX alone verifies only the occurrence of a trend when it exceeds the value of “20” and continues to rise and the strength of the trend. This is complemented by two additional lines – + DI (line of bullish movement) and -DI (line of bearish movement). Thanks to them, we receive confirmation of input or exit signals.

ADX EMA-1

Settings for ADX indicator
ADX EMA-2

Change colours of lines

Moving Average

Moving Average – in our case, 28 periods. If we used only this indicator, closing or opening positions would occur at the moment of crossing the Exponential Moving Average by price.

ADX EMA-3

Settings for Exponential Moving Average 28

CALL OPTION – GROWTH

In the case of a 60 second ADX EMA strategy we decide to open CALL option,when :

  • the green ADX line is located above the red line
  • price crosses and is above EMA 28
  • the body of the signal candle presents an upward trend
  • the signal is even stronger when the candle preceding the signal candle also has a bullish body
ADX EMA-4

Price crosses the moving average, the green line ADX is above the red line, while the body of the signal is bullish.

PUT OPTIONS – FALL

In the case of the 60-second ADX EMA strategy, we decide to open the PUT option when:

  • the red ADX line is above the green line
  • price crosses and is below EMA 28
  • the body of the signal candle presents a downward trend
  • the signal is even stronger when the candle preceding the signal candle also has a bearish body
ADX EMA-5

The price crosses the moving average, the red line is above the green, and the signal candle body is bearish

The chart below shows some examples of bets on GBP/USD M1 :

ADX EMA-6

The first three strong signals – all the assumptions are met. The last signal is weak – because the candle that precedes the signal hasn’t bearish but bullish body.

Based on: https://www.binaryoptionsdaily.com

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