Fast Moving Averages Crossover Strategy -

Fast Moving Averages Crossover Strategy

Fast moving averages crossover strategy is a binary option strategy that is based on trends regarding the changes in the price of a currency pair or any other commodity offered.The biggest advantage of this strategy is that the profits are high, while the value of losses is low.

Fast Moving Averages Crossover Strategy Preparations

Before starting to trade, you need to follow the following steps only once :

  • Choose a broker: since the work would be done by you and the computer program. All you need to take care of is that, that website offers the required software.
  • Open a practice account and download: get yourself registered as a user of the respective broker and download the program for such Trading strategies. These all are first time steps. Once they are done, you can get started.

Fast Moving Averages Crossover Strategy Procedure:

A strong point of this strategy is that there no complications involved. A person with zero knowledge of binary options can operate this. Here is a step by step guide to exercise this strategy:

  •  Choose a pair: choose the combination of currencies or commodities that you prefer.
  • Select “exponential”: many different types of moving averages will be available, choose the exponential moving average.
  • Select the Types of EMAs: these make it more responsive to price alternations. Choose 10,25 and 50 EMAs periods.
  • Trade: observe the chart and trade when 25 and 50 periods get crossed by 10 periods. If it crosses the other ones in a downward direction, then buy. If it crosses upwards, then you sell.
  • Closing: it is also important to know the time to close the trade. You should close when 10 period crosses and is going to cross 50 periods for the second time.

Fast Moving Averages Crossover Strategy Limitations

There are two limitations to this. One is its lagging nature; it can make you miss out on an opportunity. The other is that it can give late or false signals, in case of a ranging market whose vitality is low.

One Response to “Fast Moving Averages Crossover Strategy”

  1. Virgil says:

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