Many traders believe that successful binary options trading requires the use of complex analysis systems based on at least three instruments that check and confirm signals. However, in reality, it is not the case.
Considering that in the digital options market a trader does not need to calculate the fluctuations of the price, he only needs determine the price direction, it is enough to have two indicators.
There is good news for the beginners: there are simple and universal trading strategies. In other words, the strategies can be applied to almost any asset. We will discuss such strategy in the article below.
The Universal strategy offers a simple and effective approach to trading digital contracts. As mentioned above, it uses only two indicators that are popular among traders and therefore available in almost any terminal, including the Olymptrade trading platform.
How to set up your workspace and prepare for trading
It is worth mentioning that this method can work effectively even on the shortest timeframes, which is especially convenient for traders who prefer to trade turbo options.
In general, the authors of the strategy recommend not to use a time interval higher than 5 minutes. If you follow all steps of the strategy, you will get good and clear signals to buy contracts and you will be able to increase profits on your trading deposit faster.
It is interesting but you do not have to use a Japanese candlestick chart because the technique works on any type of chart.
As for assets, it is best to choose a highly volatile instrument with a clear price movement direction. It does not matter what it is – currency, stock, metal, raw materials, index or cryptocurrency.
To implement the “Universal” system, install two exponential moving averages (EMA) on the chart with periods of 10 and 21 respectively, as well as Stochastic with settings of 5, 3, 3.
How to trade with the Universal system?
Experienced traders who have been working in the financial markets for some time probably guessed that we needed two EMAs for their intersection to signal the beginning of a new trend.
It is also no secret to many that the strongest momentum in the market occurs when the Stochastic signal line is in the “overbought” or “oversold” zones.
A CALL contract should be bought when the junior EMA has crossed the senior one from bottom to top, and Stochastic has entered the 80–100 zone.
Purchasing a PUT contract in this case is appropriate in the opposite situation, when the EMA crosses downwards, and the Stochastic has moved into an oversold state (is in the 0-20 zone).
The expiration period should not be shorter than the period of formation of two candles on the chart.
The “Universal” strategy truly lives up to its name. It provides an ideal entry point for beginners exploring the digital options market who haven’t yet solidified their trading preferences. At the same time, with its impressive efficiency of up to 90%, it remains a valuable tool for seasoned traders. Especially for those looking to simplify their approach, this strategy offers a refreshing alternative to complex algorithms and cumbersome toolsets.
In an increasingly complex trading environment, the simplicity and effectiveness of the “Universal” strategy stand out. Whether you’re new to digital options or an experienced trader seeking a reliable method without unnecessary complications, this strategy adapts to various trading styles and goals. It demonstrates that successful trading doesn’t have to rely on intricate systems, but can instead be grounded in straightforward, efficient methods that yield high performance.