Awesome oscillator binary options strategy

What Trading Strategy to Use with the Awesome Oscillator Indicator?

No Comments Using the Awesome Oscillator When Trading This may be a confusing indicator in a way that it resembles the Accelerator, and also because their interpretation is almost the same. Nevertheless, there are some variations, and the way which will lead to the successful trade of binary options is observing both indicators at the same time.

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This means that it is necessary to open a chart and then set both the Awesome and the Accelerator indicators on the same chart. However, since these are oscillators, this means that two different windows at the bottom of the chart would be necessary.

  • Top 4 Awesome Oscillator Indicator Strategies | TradingSim
  • It was first introduced by Bill Williams.

Furthermore, that will help us to filter signals. In addition, this means that in case the Accelerator provides us with bearish conditions, we should then go and buy put options, but only once the signal is confirmed by the Awesome indicator.

If that is not the case, we should skip it the same as you would do in case of bullish conditions.

MA AO STOCHASTIC - Strategy for Binary Options -

Trading Platforms to Use Most of the trading platforms, as well as the most popular trading platform MetaTrader, offer the Awesome oscillator binary options strategy Oscillator. The third in line represents the Awesome Oscillator.

It is necessary to point out here that it is an oscillator which should be presented below the actual charts. Before being outlined on a chart, a window with two values will appear in green and red colours.

What Trading Strategy to Use with the Awesome Oscillator Indicator?

It is needless to say that in this case green usually represents bullish price action while red stands for bearish price action. However, colours can be easily changed according to your wish.

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It is only important that you know which colour represents which value It is necessary to mention that it is possible to trade this oscillator in two ways. The first one should be observe buying call options after at least three candles of the same colour which appear in consecutive order. Furthermore, this is a sign that by the time the oscillator has negative values, which means candles are red and the price is falling, we need to look for a series of three consecutive green candles that represent a reversal.

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With that in mind, call options should be bought after the confirmation and the expiration date which is strongly dependent on the time frame set by the oscillator. The other extreme is true as well — by the time market advance with the Awesome Oscillator which presents positive values, we should focus on trading put options as soon as we find the series of three consecutive red candles.

How to use awesome oscillator in binary

This is a contrarian strategy which can carry certain risks. However, in binary options trading in case all options expire in the money profits can be made.

It is adequate for a high percentage to be profitable. Finding Overbought and Oversold Levels The other way to trade markets with the Awesome Oscillator is looking for levels which represent overbought and oversold. This activity can be easily done by finding high values that were made by the oscillator and respectively insert a horizontal line at that level.

The same thing needs to be done in the case of lower levels. The main idea behind is to trade call options whenever the oscillator presents negative values or moves below the line, and trade put options in case the oscillator shows positive values or moves above the line.

However, some prefer using the zero line crossing for attaching some call options on a bullish cross or put options on a bearish cross.

MA AO STOCHASTIC – Strategy for Binary Options

Zero level of the oscillator, in this case, is acting as a continuation pattern. There are traders that are using bullish or bearish divergences in an identical way as divergences that are used on the Relative Strength Index. Furthermore, this means that in case the Awesome Oscillator does not confirm a second low which the price made, a bullish divergence will be formed. As a result, call options are recommended.

How to trade with Awesome Oscillator indicator? Analysis and strategy

On the other hand, in case the price makes two consecutive highs, and the oscillator does not confirm them, it is being assumed that the market is forming a bearish divergence. This suggests that put options should be traded. Trading It Like an Oscillator Since it is an oscillator, it awesome oscillator binary options strategy also be treated that way and, as previously mentioned, it is either used to represent a divergence with price, or it can stand for a continuation pattern in case market is crossing the zero level.

Nevertheless, one thing is different: usually, oscillators show overbought and oversold levels, like the Relative Strength Index RSI which shows overbought levels at the 70 and also oversold at the It is necessary to know that the Awesome Oscillator is not presenting such levels.

Finding these places means that we should probably do the homework and go back in time to see historical prices.

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In that case, what we see to be a spike higher should signify a reference for future levels. This educational series project includes the two video recordings that are showing you exactly how and where to find the Awesome Oscillator.

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Besides, they will also show how to use it in order to see great places with striking prices and the high possibility of leading you to successful call options. Start trading now by opening a FREE account on one of our recommended brokers. Recommended Binary Option Brokers:.

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