Types of moving averages

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Binary options are one of the leading trading sectors where you can make a lot of profit in a very short period of time. One of such methods is called exponential moving average stockpair binary option exponential moving average rainbow strategy! strategy. It is one of the popular moving strategies with potential of amazing results.

This strategy makes use of exponentially moving averages of period 6, 14 and This strategy works in short time positions and is considered to be very effective. Observe the trading of an asset using the candles of 5 minutes. Add three exponential moving average indicators using charting software. The period of these averages must be 6, 14 and 26 period respectively. Use different colors for each moving average and it will be a smart idea to use a bold indicator for 26 period moving averages as it is the most important one.

It is highly recommended that you use a smooth functioning and updated charting software. Treat 26 period line as the base line. If the 14 period and 6 period lines are above it, it indicates bear trading i. You should place your money accordingly. Stockpair binary option exponential moving average rainbow strategy! is important to understand that the lines have to be observed carefully. You have to wait for the right opportunity. Do not trade using this strategy when the period lines are close to each other.

Exponential moving average rainbow strategy works only if the period line is distinctly below or far top of the 14 period and 6 period lines. The advantage of this strategy is that it is less complicated than many other strategies of binary options and easy to use. However, it is recommended that you practice this strategy on a demo platform till you feel confident about it before investing in the real market. Mail will not be published required. October 20, by Martin.

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