53# Binary Strategy (SMA Cross + Parabolic SAR + Stochastic)
Submit by Joy22 2024
Binary Options Trading Strategy (SMA Cross + Parabolic SAR + Stochastic) is a trend momentum strategy.
ndicators Setup:
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5-period Simple Moving Average (SMA).
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13-period Simple Moving Average (SMA).
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Parabolic SAR:
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Step: 0.03
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Maximum: 0.2
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Stochastic Oscillator:
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%K: 16
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%D: 3
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Smoothing: 3
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Time Frame: 1 minute or higher.
Expiry Time: 1-3 candles.
Entry Rules:
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Buy Call Option (Uptrade):
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The 5-period SMA crosses above the 13-period SMA (bullish crossover).
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The Parabolic SAR dot is positioned below the candle.
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The Stochastic Oscillator is above 50.
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Buy Put Option (Downtrade):
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The 5-period SMA crosses below the 13-period SMA (bearish crossover).
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The Parabolic SAR dot is positioned above the candle.
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The Stochastic Oscillator is below 50.
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Note after crossover wait the candle setup for buy is green, for sell is red.
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Additional Tips:
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Avoid overtrading in highly volatile market conditions, as false signals might appear more frequently.
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Check for trend strength by observing whether the Stochastic is moving towards overbought (for calls) or oversold (for puts) zones, as this will increase trade confidence.
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Risk management is key: keep trades small and never risk more than 1-2% of your account on a single trade.
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Test the strategy on a demo account before going live to ensure you understand how the conditions play out in real-time.
This strategy uses SMA crossovers to identify trend changes, with Parabolic SAR confirming the direction, and the Stochastic Oscillator adding a momentum filter, making it a powerful setup for short-term Binary Options trades.
