Strategy for the binary options broker Quotex - Awesome Oscillator and BB
The strategy for binary options is based on the Awesome Oscillator. This tool is considered one of the best momentum indicators.On its principle it’s similar to the MACD histogram, but in this case, the calculations are performed on median prices, not closing prices. The indicator is effective, but not able to give accurate signals. To increase the chances of a successful trade, we recommend using the tool in tandem with the Bollinger Bands, which will serve as a support and resistance level.
Setting up indicators on the Quotex broker platform
First, let's set up the Awesome Oscillator (AO) indicator. Basic parameters are suitable for trading:
- Short period: 5;
- Long period: 34.
When setting up the Bollinger Bands, the following parameters should be set:
- Period: 20;
- The color of stripes: we left the standard, but you can change them at your discretion.
The author of the strategy recommends trading on the 5-minute time frame. The optimal expiration time is 3 candlesticks or 15 minutes.
Conditions for entering a trade on the Quotex broker platform
To purchase a CALL option, the following conditions should be met:
- The candlestick broke through the middle Bollinger band from below and closed above it;
- The AO indicator bar is green;
- Wait until the green bar exceeds the zero level.
To purchase a PUT option, you need to wait for the following conditions to match:
- The candlestick broke through the middle Bollinger band from above and closed below it;
- The AO indicator bar is red;
- Wait for the red bar to drop below the zero level.
This strategy is intuitive and easy to use. Please note that often both conditions do not match at the same time, as the price moves slightly ahead. Therefore, wait for a few candlesticks until the AO indicator conditions are met.