Australian trader Daryl Guppy is a master in trading on the trend. He created a strategy with 13 moving averages (and named it in honor of himself, why be modest?). Let’s first of all say that this strategy is very strong. It’s easy to work with, and even a beginner will notice the signals. And if you “catch” the trend, you will be in the black.
Configure the template
Any asset with a pronounced trend is suitable for the strategy. We recommend choosing a timeframe from 30s to 5m, and transactions should be concluded within a period of 3 to 30 minutes (the longer the timeframe, the longer the expiration period).
In the “Indicators” tab, we select the MA (moving average). We will need to add 13 of these indicators. Here are their settings:
The fast MAs:
- Type Simple
- All green
- Periods: 3, 5, 8, 10, 12, 15
The average MAs:
- Type Exponential
- All orange
- Periods: 30, 35, 40, 45, 50, 60
One slow MA:
- Type Simple
- Classically, a period of 200 is suggested, but for binary options use 120
Conditions for transactions UP:
- The green MAs are above the orange MAs. Both of them start fanning upwards;
- The price is higher than the orange MAs;
- The red MA is below everything and is directed upwards.
Conditions for transactions DOWN:
- The green MAs are below the orange ones. Both of them start fanning downwards;
- The price is lower than the orange MAs;
- The red MA is above everything and is directed downwards.
The greater the distance between the fast (green) and average (orange) MAs, the stronger the trend, and the more accurate the signal.
If the moving averages begin to converge, it means that the trend will soon be over and it’s time to complete the trade:
Note: To filter out false signals and enter into transactions more accurately, we recommend adding the RSI indicator to the chart.