Another common technique is to use 2 moving averages with different periods. Popular pairs of averages are 9 and 13, 8 and 21, 10 and In the chart below you will find SMA 8 and SMA The SMA 8 follows the price faster than the SMA The signal to buy is when the fast average crosses the slow average upwards.

The signal to sell is when the fast average crosses the slow average down. Both of these techniques work. However, it is better to use them in combination with a set stop loss and take profit.

Binary options , however, are an instrument that does not offer such possibilities. Here we are only assessing whether the market will go up or down. Our assessment is verified by the actual direction of the market. As I mentioned, binary options require a slightly different approach to trading. We will use the same averages, SMA 8 and SMA First of all, they will be used to determine the existing trend.

If the average is more than slow, then we are dealing with an uptrend. If the fast average is below the slow average we say that the market is in a downtrend. The trend is one thing and the moment the position is opened is another. Our binary options strategy is about being clever. If the trend is downward, we will try to open the option for price falls. The place where we will trade is to be clearly expensive in the market.

If we have an uptrend, we want to open an option for the price increase, but in a place where it is extremely cheap. But what does this mean in practical terms? Practical examples best show the idea of this binary options strategy. If there is a downward trend we wait for the price to exceed the fast average SMA8 upwards. If this happens, we wait for the price to clearly break through the SMA8. Some traders will read it as a buy signal, but in such situations, the price usually returns.

This is our signal to open a 1-minute option for a price drop. In the chart below I present one of the transactions. The red rectangle indicates where it is relatively expensive, which is good for opening positions for price drops. If we have an uptrend we wait until the price breaks downwards successively SMA8 and then SMA Afterwards, we quickly open the option for the price increase. Look at the chart below. Remember that this binary options strategy, like any other, does not work every time.

In addition, it requires some practice. It is good to practice it on your demo account. Using this method, prepare several charts for different currency pairs and try to monitor the situation in several markets simultaneously. Remember to set an appropriate expiry time of one minute.

Remember also that the method works best when the trend is also visible without the use of indicators. This method may turn out to be very effective after a few weeks of training and observations. Unlike other trading methods, in binary trading, a trader gets to choose the timeframe. The choice of this time frame determines the trade. We can see its resemblance to the 60 seconds trade.

However, in the 5-minute trading, the time available for predictions is more, reducing the volatilities compared to the minute trades. But, it also requires the use of smart strategies like any game. IQ Option is a broker that does not disappoint its clients in giving them the best 5 minutes strategies on IQ Option. These strategies shall help you win trades like nothing else. So before moving further, let us view them and know how they can help you with 5-minute binary options.

An IQ Option trader can make most strategies to adapt to any time frame. Here, the word of caution is that a shorter time frame provides a less reliable signal. However, the following strategies can be effective with a small time frame, such as the 5-minute trade. It is among the simplest forms of strategy.

The traders must pay attention and note the minute-to-minute changes occurring in the prices. While doing so, they must understand how the action acts upon those changes. Unlike in the old days when traders did it by watching ticker tape, a charting package like MT4 will help you do the job more easily. Once you set the charts to 1,2, or 5 minutes , it will work effectively.

While executing this strategy, you may also notice patterns that include triangles, heads, and shoulders, flags, pennants, etc. It is a strategy that also incorporates other signal types along with action trading. In scalping , a trader executes a trade based on what she thinks the market will do in the next period. Also, that period generally implies minutes that do not extend beyond Therefore, it is a perfect strategy for a 5-minute trade.

Japanese Candlesticks are one of the effective methods to view trading charts. They can give a variety of signals on IQ Option that traders can also use for scalping and other types of strategies. We can understand candlesticks as an extended method of plotting price data on a trading chart. However, the results of this method are way more rewarding than we can anticipate. Traders can use the candlestick signals with any chart setting they wish to use.

However, it is one of the few strategies that work well with 1,2, and even 5-minute trading. In binary trading, we cannot emphasize enough the importance of momentum. It is an essential aspect for both technical analysis and price action. Whenever we see the price and market move , it contains momentum. It is the amount of force that drives the movement.

In other terms, momentum is the total of the money and people moving into or out. Such a movement shall be regarding an asset, and it should carry the prices in a particular direction.

When that happens for an extended period, traders can use it for strategizing their trading plans. It can act as a reliable trading indicator even with a 5-minute trade. In such a case, a trader can effectively set the trading at 1,2, or 5-minute charts, for an effective strategy. A strategy signifies the ideal approach that a trader must use to tackle a particular market condition.

We can assume trading as both an art form and a game. It is the art of getting rich, but at the same time, it works like a game also. It is tragic to see people often try out unfruitful ways of making money. They end up bearing losses instead of profits. The main reason behind such a mishap is that many of them do not know how to utilize their opportunity. A strategy can help in that. Regardless of your asset choice, a sound trading strategy is one of the essential requirements.

It will help your trade become consistently profitable. You can devise a systematic approach to your trades with a sound trading strategy. It is a necessary factor in the long-term success of your trading journey. Especially when you are trading in a short window method such as 5-minute trades , you must be aware of the useful strategies. They will supplement your fundamental and technical analysis and help you perform better. Nowadays, there are many fast-growing online trading brands worldwide.

IQ Option is one such trading brand. It offers services through its unique platform that is full of lucrative features. During the last couple of years, various news agencies have also featured it. IQ Option is an award-winning binary trading broker platform with many accolades.

It recently bagged the excellence award in and the best trading platform award. The user database of IQ Option is also large and comprises more than registered users all over the world from India to South Africa. Therefore, IQ Option can be an ideal choice for all binary traders. Trading has seen a significant change in the past few decades. The rise of online methods and binary options has taken over the old methods. The popularity it has shown is remarkable and is increasing day by day.

However, entering into the binary world can be tricky for a newcomer. The market is unpredictable and requires you to choose either a yes or no proposition.

Home » Binary Options brokers » IQ Option » IQ Option trading strategies. IQ Option is an online binary option, CFDs, and Forex trading platform. It is a well-regulated online trading platform and is very safe for users.

They have various trading strategies, trading tools, and other features available to give the users a better trading experience. We show you the best IQ Option trading strategies. IQ Option was founded in It is located in Kingstown, St.

Vincent, and Grenadines. IQ Option is one of the most well-known online trading platforms in the world. They offer a wide range of assets to trade and also have a very low deposit amount to get started. The platform also provides a demo account to practice with virtual coins and get a better understanding of the platform and its features.

IQ Option has a wide range of strategic tools available on the platform for traders. They are important in trading in order to avoid losses and gain profits.

Here are a few available strategies on IQ Option. Momentum trading is a trading strategy in which the traders wait for the asset to indicate swift movement and then open the deal. You should observe the price movements closely as fundamental and technical factors can both set off massive price movements.

You must use stop-loss orders in order to avoid considerable losses. Pullback trading strategy finds an asset and moves in the direction of the trend. There are three varieties of trends: weak, strong, and healthy.

You should know how to classify the type of trend in order to identify the valuable area on the charts. With a scalping strategy, you can profit from small price changes. Scalping strategy involves opening a positing, making a small profit, and then closing the position right after that.

It is one of the easiest and the best trading strategies. Deals can be very short while using the scalping strategy. While using a scalping strategy, the trader should quickly make important decisions and act fast. With the news trading strategy, the good news tends to move the asset price higher, and the bad news tends to lower the asset price.

You must make the correct prediction about the news before it reaches the market and makes a correct forecast. A breakout occurs when the price moves outside an established price range.

Breakout trading focuses on putting the support and resistance levels to good use. When the prices go above the resistance level, you can implement the Breakout trading strategy. You can use various trading strategies on IQ Option to earn profits. The best and the fastest way to make money on IQ Option is by using these trading strategies and various trading tools and features to trade online.

This can minimize the losses and help you earn more profits. The demo account is a great place to test out these strategies. With a demo account, you can get a better understanding of the trading platform and get familiar with all the vast trading tools and features without investing any real money. You should test all the trading tools and various strategies before you are confident enough to start trading for real. The demo account provides you with virtual coins and has the same features and trading tools as the real account so that you can practice with them before stepping into the real online trading world.

IQ Option offers an excellent payout to its users along with other perks and benefits. You can access IQ Option from any device, android, IOS, Windows, etc. IQ Option has a wide range of deposit and withdrawal methods available on its platform.

The platform is very handy and is totally customizable. This online trading broker has acquired many awards. The platform is one of the most reliable and trustworthy online trading platforms as it has received various awards and recognition among traders. It also has very simple and easy-to-follow steps for depositing and withdrawing funds. The platform is properly regulated, which makes it a very safe and secure online trading platform out there. IQ Option has more than 50 million users and over 1 million transactions per day.

The platform is available to users worldwide in more than countries. It is also available in over 12 languages. IQ Option has a number of currencies available for traders. IQ Option is properly regulated by Cyprus Securities and Exchange Commission or CySEC. Cyprus Securities and Exchange Commission is a financial regulatory agency in Cyprus. IQ Option has won many awards for its excellent quality and reliability. IQ Option is one of the best online trading platforms among others. It is one of the safest online trading platforms.

One should always check the regulations of the online trading platform in order to avoid getting scammed and any risk. Being regulated by Cyprus Securities and Exchange Commission CySEC , IQ Option is a very safe platform for users to trade online.

It is one of the most reliable, trustworthy, and reliable online trading platforms out there. IQ Option offers CFDs, Forex , stock and commodities, crypto and ETF type trading.

To be able to trade on IQ Option successfully, you need to understand all these trading types more thoroughly. The better you understand these trading types, the more will be your chances of gaining profit on this online trading platform.

CFD is also known as Contract for Difference. It is an agreement between the buyer and the seller which states that the buyer will pay the amount to the seller the difference in rate between the present price of an asset and the contract time price of that asset. With CFD trading , you can profit from the price change in assets without having to own those assets.

In CFD trading, only the difference between the trade entry and trade exit matters, the actual price of the assets is of no importance. If the trader makes the correct prediction, the trader will benefit from the price difference, but if his prediction is incorrect, he might lose his money.

With Forex or Foreign Exchange, one can trade different currencies. Globally, the forex market is the most well-known market. Forex is always traded in currency pairs. You can easily trade Forex of IQ Option. To trade Forex on IQ Option, you need to stipulate the details like leverage, investment amount, and other required fields.

ETF or Exchange Traded Fund is a type of security that deals with commodity, index sector, or other assets. However, it can be purchased or sold on a stock exchange the same way as regular stock. ETF offers more diversification than stocks. With IQ Option, you can also trade stocks and commodities. IQ Option has more than stocks to choose from.

You can also trade various communities, including Gold, Silver, Crude oil, Brent, and Crude oil WTI. IQ Option allows traders to trade cryptocurrencies like Ethereum, Bitcoin, and others. You can find cryptocurrencies in the trade room. While trading cryptocurrencies, you can open a deal and keep it open for as long as you want. You need to be able to calculate the profit and loss while trading to avoid loss. You can trade on IQ Option using any trading type, but you need to have a good grasp of whatever tools and features you are using; you also need to calculate the profit and loss while trading to avoid loss and gain more profit.

IQ Option has a number of features available for the traders to use and enhance their trading experience. Once you have signed in, you should get familiar with different trading tools and features on the platform. All the tools and features are very easy to find on this online trading platform. Features available on IQ Option are as follows:. You can open four different multi-window views with this feature. If you want to view the real-time charts of the different tools that you have selected, you can choose the multi-window view feature.

With this feature, IQ Option lets you choose a chart type while trading online. The available chart types on IQ Option are linear charts, bar charts, Japanese candlesticks, and others.

IQ Option has various indicators available for the traders to use, which helps in the technical analysis like RSI, Bollinger bands, EMA, SMA, Stochastic oscillator, and many others. You can choose a drawing tool that will help in the technical analysis with the graphical tools. The graphic tools on IQ Option include a trend line, a simple line, a horizontal line, a vertical line, etc. With the select instruments feature, it will get added to the IQ Option interface when you select any instrument to use.

There are various other features and trading tools that IQ Option offers to users worldwide. These features and trading tools help enhance the trading experience for the traders. IQ Option has a wide range of trading tools and features available, making it one of the most well-known online trading platforms. IQ Option is known for its wide range of trading tools and features. It offers a few additional features along with a wide range of other features, which includes:.

IQ Option offers many educational materials to the users, like video tutorials and more.

Vote count: This strategy works best for a short period. IQ Option has a number of features available for the traders to use and enhance their trading experience. However, the following strategies can be effective with a small time frame, such as the 5-minute trade. How tu use RSI Indicator on IQ Option From the list of technical indicators, select RSI Indicator. The platform is very handy and is totally customizable.

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