Traders use many different trading strategies that allow them to identify the best points to enter and exit their transactions. Some methods are based on candlestick patterns and some on indicators. The one I will present today joins the RSI, the EMA and the engulfing pattern. You must be logged in to your IQ Option account. Today's strategy gives the best results in the markets with high volatility.

Take it into account when choosing the asset. Set the chart timeframe for 1-minute. We will use two indicators in this strategy, the Relative Strength Index and the Exponential Moving Average. The RSI will be used to identify the medium-term trend. The EMA serves as a long-term trend filter. We will use the EMA with the RSI on the 1-minute chart. Click on the Chart Analysis icon and find the RSI indicator. Leave the default settings. Then find the EMA and add it to your chart.

Change its period to You can see on the above chart that my RSI has got just one horizontal line at the level of How I did that? I set the Overbought level at Then I went to colour settings and made the Oversold level transparent changing its opacity.

This way I have an RSI indicator window with only one horizontal line I am interested in. On the IQ Option platform , you have the possibility to save the configurations. This is very convenient when you use a strategy often. Next time you will just have to find a ready template instead of adding all needed indicators. Simply write the name you want this particular template to be called and click Save.

You can save your indicators set as a template. The strategy is used on the chart with a 1-minute candlestick period set. You should, however, keep the position open for 5 minutes.

The assumption is that the price will fall or rise within 5 minutes from the signal received. So set the expiration time to 5 minutes for your binary option. Remember to keep your expiration at 5 minutes. Trading binary options with a strategy that combines the RSI, the EMA and the engulfing pattern is not very complicated.

It requires you to follow a few simple rules and to act as soon as you get a signal to open the transaction. The first thing is to observe the EMA line. The price bars should develop beneath it which indicates there is a downtrend. Next, look at the RSI window. There is a horizontal line with a value of The indicator should run below this line. With these two conditions met, wait for the bearish engulfing pattern to appear. The body of the bearish candle should engulf the body of the former bar.

When you notice such a pattern, open a short position right when the next candle begins to develop. When you plan on opening a long position, there should be an uptrend in the market. To ensure this is the case, check where the candles are developing in relation to the EMA line. You are looking for a situation where the price is above the EMA The last thing you are waiting for is the appearance of the bullish engulfing pattern.

Moving averages make it possible to determine the trend and level allowing to make transaction. In various sources I have found various information about the time frame used, so this strategy can be used from the interval M1 to H1 mainly but higher intervals are not excluded. Try trading on binary options on currencies, indices, commodities and shares of popular companies.

If you lose, regardless of the size of the loss, you never lose more than you bet. You can also choose other expiration hours for options, both shorter and longer. Analysis Strategies Brokers Dukascopy Europe XM Moneta Markets Forex B2B Education. Forex News, Analysis, Charts and Forex Brokers comparic.

Home Analysis EMA Rainbow — Strategy for Binary Options. The Rainbow EMA strategy uses three exponential moving average EMAs: 6-period moving average EMA 6 period moving average EMA 14 period moving average EMA 26 Moving averages make it possible to determine the trend and level allowing to make transaction.

The whole set of indicators looks like this: When to make a transaction: Buy CALL option: Moving mediums are facing upward. The EMA 6 blue is at the top and the EMA 26 yellow at the bottom.

Price makes pullback to the purple moving average and crosses it from above. If one of the next two candles are bullish start to grow and closes above the purple moving average, we open the CALL option. The expiration period of the option is three times the observed interval: If we observe a 1 minute interval, the option expires after 3 minutes If we observe a 5 minute interval, the option expires after 15 minutes If we observe the 15 minute interval, the option expires after 45 minutes If we observe a 30 minute interval, the option expires after 90 minutes 1.

If we observe a 1 hour interval, the option expires after 3 hours Buy PUT option: The moving averages are pointing downwards. The EMA 26 yellow is at the top and the EMA 6 blue at the bottom. The price makes pullback returns to the purple moving average and crosses it from below. If one of the following two candles are bearish starts to fall and closes below the purple moving average, we open the PUT option.

If we observe a 1 hour interval, the option expires after 3 hours Try trading on binary options on currencies, indices, commodities and shares of popular companies. Leave us a comment! Error, group does not exist! Check your syntax! ID: 3. RELATED ARTICLES MORE FROM AUTHOR. A week of important data is coming up, will it be a Hitchcock-like experience?

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The forex industry is huge and is continuing to grow every day. There are now millions of people who trade forex on a daily basis. With so many people performing trades, there are several different strategies emerged. Everyone vouches for their own strategies, but the truth is, no strategy is wrong as long as you perform it the right way. One of the most popular trading strategies is the use of Exponential Moving Averages.

Let's get into more detail on what this actually is before we reveal our favorite strategy with this method of trading. In order to understand what is an Exponential Moving Average, we need to first know what a Moving Average is.

A Moving Average is a type of indicator that is used to analyze price data over a specific period of time by creating a line graph representing the average price. Exponential Moving Averages is a type of Moving Average that gives greater weight or importance to the more recent price in a chart.

The smaller the EMA number, the more responsive it is to the latest price. The strategy we're going to be talking about today revolves around having an EMA crossover. Now you may be wondering what this even means. We're going to be using two different EMAs in this strategy. Each of them will have its own line going through the chart. When the two EMA lines cross over each other, it would be known as an EMA crossover.

This crossover strategy is only going to work if you're using two different EMAs. This is because this is the only way they'll generate two different lines with different weights. We're going to be using two EMAs on a 5-minute chart. We're going to be depending on their crossover points in order to execute our positions. The two EMAs we're going to be using are the 8 EMA and the 20 EMA.

Let's understand how to perform this strategy on a long trade and a short trade. See Also: 5 Minute Trading Strategy with EMA. A long trade is where you enter a trade in a BUY position. To enter a long trade with this EMA crossover strategy, we're going to have to wait for the two lines to crossover while the market is moving in an ascending pattern.

Once this happens, we enter the trade. To exit a long trade with this EMA strategy, we're going to wait to see when these two lines crossover while the market is moving in a descending pattern.

Once this happens, we exit the trade. A short trade is where you enter a trade in a SELL position. It uses the same method we just went over above but just done the opposite way. To enter a short trade, we have to wait for the EMA lines to crossover while the market is descending.

Similarly, to exit a short trade, we have to wait for the EMA lines to crossover while the market is ascending. In addition to 8 and 20 EMA lines, there is a certain EMA period that is well known for its reliability in signifying price trends. Learn about it further in EMA Trading Strategy, Simple Yet Powerful. I've been writing as a hobby for about 10 years but I just started doing it professionally.

I've also dealt with different brokers and trade using MetaTrader 4. Not finding what you're looking for? Or go to one of our top sections if you need any suggestion. Search Page Search Broker Broker Name Country Established Regulation Max Leverage Min Deposit Broker. What are the best EMA periods if you scalp in small time frames? This particular strategy could give you an insight to the best EMA crossover in a 5-minute chart.

What is Exponential Moving Average? What is an EMA Crossover? More Articles on Technical Analysis. What is an Order Block Candlestick? Best Indicators for 5-Minute Charts. Best MACD Setting for Day Trading.

What is the Best EMA for Swing Trading? Moving Average Alternatives for Trend Trading. Related Articles Currency Pair, Liquidity, And Volatility Using Inverted Hammer Pattern the Right Way Best Moving Average for 1-Hour Chart 3 Most Important Technical Indicators You Should Know "Buy the Rumor Sell the News", What Does It Mean?

How Reliable Is Forex Technical Analysis? Top Forex Indicators. Candlestick Update. More Infographics ×. Compare forex brokers side by side Search the best broker based on your own rules All about social trading What's new in the brokerage industry Latest bonus update from any forex broker Money Management calculator Enter the world of cryptocurrency.

Our goal is simple - to provide the most proven tools that you will use in your trading. H4 Trading Strategy with Doji Candlestick 5-minute Trading with Bollinger Bands Guide to the Narrow Range 4 Bar Strategy Top 5 CFD Trading Strategies You Should Try. When the two EMA lines cross over each other, it would be known as an EMA crossover. I set the Overbought level at GOLD falls, bearish engulfing pattern on daily chart. As promised, today is the time to introduce another strategy that we will be testing for the next two weeks. We entered a short position at

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