Know CogStochastic Binary Options Strategy and earn more
The Cogstochastic binary options strategy is based on two indicators. Cogstochastic is the first indicator. The CoG represents the center of gravity and is well known as custom indicator that measures the price deviation distance from the mean.
Concept of the Strategy
The CoG price returns to the mean always owing to the rubber band effect such that it returns when it is deviated too much. The too much is the part that is measured by the center of gravity when the stochastic moves from the center line that is from the mean and touches to top or bottom one, the outer bands and returns to the center. Precisely, it is a different way of viewing oversold or overbought stochastic condition.
CogStochastic Binary Options
The chart has white rectangles and has the stochastic oscillator showing oversold or overbought. This indicates it is too far away from the middle dotted line, the mean. The next to move is the price that is reverse the current direction and it returns to the mean. On a closer look, you will notice that the price never returns immediately and here the FX Trend indicator has its role. As the stochastic returns from CoG outer bands, you must wait for a matching color change and enter the trade when the red and blue line is on the price. This is same as binary option strategy.
Advantage of CoGStochastic Strategy
The CoGStochastic strategy is easy as binary options strategies. They are straightforward and depend on the center of gravity and mean reversion. However, the FX Trend indicator creates lots of changes as the colors change fast and generates signals. The signals are available to be used for a time frame of 30 minutes, but require a long expiry time.
- The CoGStochastic strategy helps picking trade even for beginners. They need not understand the entire principle of trading.
- The strategy is simple and to improve the results, they need to change the FX Trend indicator. They can do this by taking help of some experienced trader and modify the settings to get good results.
- This strategy has a lot of potential for beginners and seasoned traders with modifications. Initially, beginners may find it confusing to understand the center of gravity and also the mean reversion. But after a short time, he will know to handle.
- The biggest advantage is that any inexperienced and new guy can also trade a mean reversion strategy in simple two rules. This makes the CogStochastic binary options strategy popular.