The 50-period moving average is a widely used technical indicator in trading, valued for its ability to smooth out price data and highlight the underlying trend of a market. When prices are consistently above the 50 moving average, it typically signals an uptrend, while prices below it suggest a downtrend.
Trade On Pocket Option: http://pocketoptioncapital.com
Traders often use this moving average as a dynamic support or resistance level, entering trades in the direction of the trend when price interacts with the line. For instance, a bounce off the 50 MA during an uptrend may signal a continuation of the bullish movement, offering a potential entry point.
Complementing this, the stochastic oscillator is a momentum indicator that compares a specific closing price to a range of prices over a certain period. It consists of two lines — %K and %D — and fluctuates between 0 and 100. Readings above 80 indicate overbought conditions, while readings below 20 indicate oversold conditions. Traders use these signals to identify potential reversals or corrections, especially when confirmed by divergence or crossovers of the %K and %D lines. When paired with the 50 moving average, the stochastic oscillator can refine entries and exits by signaling when momentum supports or contradicts the prevailing trend.
Together, the 50 moving average and stochastic oscillator form a robust trading strategy. For example, in an uptrend where the price remains above the 50 MA, a trader might look for the stochastic to dip into the oversold territory (below 20) and then cross back above, signaling renewed bullish momentum. This convergence of trend and momentum often results in high-probability trade setups. Similarly, in a downtrend, the stochastic becoming overbought and then crossing downward can signal a short entry opportunity. This combined approach balances trend-following with momentum timing, helping traders avoid false signals and improve decision-making.
Open Account: http://pocketoptioncapital.com
Risk Disclaimer:
Trading options involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument. Any trading decisions that you make are solely your responsibility. Past performance is not necessarily indicative of future results.
Intraday trading strategies, live day trading, live trading, quotex trading strategy, quotex trading strategy, binary options trading strategy, quotex trading app review, binary options, trading, quotex trading app, nifty prediction, binary trading, binary options trading, binary options trading strategy, day trading live, quotex, quotex strategy, pocket option, pocket option strategy, best binary options brokers, pocketoption strategy 2025, binary trading, binary options indicator, binary option, binary options trading, indicator mt4 binary options,
Trade On Pocket Option: http://pocketoptioncapital.com
Traders often use this moving average as a dynamic support or resistance level, entering trades in the direction of the trend when price interacts with the line. For instance, a bounce off the 50 MA during an uptrend may signal a continuation of the bullish movement, offering a potential entry point.
Complementing this, the stochastic oscillator is a momentum indicator that compares a specific closing price to a range of prices over a certain period. It consists of two lines — %K and %D — and fluctuates between 0 and 100. Readings above 80 indicate overbought conditions, while readings below 20 indicate oversold conditions. Traders use these signals to identify potential reversals or corrections, especially when confirmed by divergence or crossovers of the %K and %D lines. When paired with the 50 moving average, the stochastic oscillator can refine entries and exits by signaling when momentum supports or contradicts the prevailing trend.
Together, the 50 moving average and stochastic oscillator form a robust trading strategy. For example, in an uptrend where the price remains above the 50 MA, a trader might look for the stochastic to dip into the oversold territory (below 20) and then cross back above, signaling renewed bullish momentum. This convergence of trend and momentum often results in high-probability trade setups. Similarly, in a downtrend, the stochastic becoming overbought and then crossing downward can signal a short entry opportunity. This combined approach balances trend-following with momentum timing, helping traders avoid false signals and improve decision-making.
Open Account: http://pocketoptioncapital.com
Risk Disclaimer:
Trading options involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument. Any trading decisions that you make are solely your responsibility. Past performance is not necessarily indicative of future results.
Intraday trading strategies, live day trading, live trading, quotex trading strategy, quotex trading strategy, binary options trading strategy, quotex trading app review, binary options, trading, quotex trading app, nifty prediction, binary trading, binary options trading, binary options trading strategy, day trading live, quotex, quotex strategy, pocket option, pocket option strategy, best binary options brokers, pocketoption strategy 2025, binary trading, binary options indicator, binary option, binary options trading, indicator mt4 binary options,
Category
📚
LearningTranscript
00:00In this video, I'm going to be showing you an unbelievably simple stochastic moving average
00:05strategy that will allow you to make consistent profits trading binary options. No matter if
00:10you're a beginner or an expert trader, this strategy is for everyone. And if you're looking
00:15for a consistent, reliable strategy that's going to make you some good money, you've come to the
00:20right place. Okay, so let's get into some of the basics. What is the stochastic oscillator? Well,
00:26this indicator helps us identify whether the price of a security is overbought or oversold.
00:32Now, how do we know when the price is overbought or oversold? When the two lines of the stochastic
00:37oscillator are above the 80 marker over here, the price is considered to be overbought. And when
00:43the two lines of the stochastic oscillator are below the 20 marker over here, the price is considered
00:48to be oversold. Using this information, the stochastic oscillator can really help us identify
00:53trends and potential reversals. And as for the moving average indicator, I mean, it's pretty
00:59self-explanatory. The indicator shows the market's movements over a longer period of time, which can
01:04really help us identify different trends in the market. So now that you understand the basics of
01:10the indicators that we're going to be using for this strategy, we're going to go ahead and add the
01:14indicators to our chart. From here, you want to head over to the indicators. And the first indicator
01:19that we're going to be adding to our chart would be the stochastic oscillator. And the second indicator
01:24that we would be adding to the chart would be the moving average. Once you've added both indicators
01:29to your chart, it should look something like this. Now, before we dive straight into the strategy,
01:35we need to go ahead and change a couple of things. We're going to leave the stochastic oscillator as is,
01:39but we need to change a couple of settings for the moving average indicator. What you're going to want
01:43to do is click on the pencil over here. Then we're going to change the period from 10 to 50. And then
01:50we're going to change the moving average from SMA to EMA. Once you've done that, you can click on save.
01:57Keep in mind that the indicators that we've added to the chart each play a different role within this
02:02strategy. We'll use the stochastic oscillator for potential buy and sell entries, and we'll use the
02:07moving average to identify different trends in the market. So I'm currently on the one minute time frame,
02:13and for this strategy, we'll be using the one minute time frame in confluence with the 15 minute
02:19time frame. At the moment, as you know, we are on the one minute time frame. So I'm just going to go
02:23ahead and switch over to the 15 minute time frame. You can do this by clicking on the time frames icon
02:28over here and switching from the one minute time frame to the 15 minute time frame. So we are
02:34currently looking at the CAD JPY OTC currency pair, and you're probably wondering why we've switched over
02:39to the 15 minute time frame. For this strategy, we're going to be using the 15 minute time frame
02:44to identify the short to medium term trend in the market. In this case, as you can see, CAD JPY is
02:49clearly in an uptrend. Why? Well, the price is creating higher highs and higher lows. Because
02:54CAD JPY is in a short to medium term uptrend, we'll be focusing on opening buy positions only. Once you've
03:00identified the short to medium term trend in the market, we're going to go ahead and switch over back
03:04to the one minute time frame. So we are back on the one minute time frame. And we now know that
03:09the short to medium term trend on the 15 minute time frame is towards the upside. So it's very
03:14important that we see confluence, that correlation between the 15 minute and the one minute time frame.
03:20This is where the very first confirmation comes into play. We obviously know that the price is moving
03:25towards the upside on the 15 minute time frame. We need to see that same reflection on the one minute
03:30timeframe. We need to see that the price is moving well above the 50 EMA. And in this example, that's
03:37clearly the case. So that would be the very first confirmation before opening any sort of trade. Now
03:44the second confirmation we need is provided by the stochastic oscillator. Let me go ahead and expand the
03:49stochastic oscillator over here. Because the price is on an uptrend and well above the 50 EMA, we're
03:55obviously focusing on buy positions only. Because we're focusing on opening buy positions,
04:00we need to wait for one very important confirmation provided by the stochastic oscillator.
04:05We need to see that both the blue and orange lines close below the 20% marker over here.
04:10When both the blue and orange lines close below the 20% marker on the stochastic oscillator,
04:15this essentially means that the price is considered to be oversold, making this a great opportunity to
04:20enter a buy position. But it's not just about recklessly entering a buy position. We need to wait for a
04:26little more clarity. Here we can see the stochastic swiftly move to this oversold region over here.
04:32And all that we needed to wait for was the blue line to cross above the orange line below the orange
04:3620% marker over here, which is exactly what happened. Now this is the clarity we need. Once the blue line
04:43crosses well above the orange line, this is the exact confirmation we need to open a buy position.
04:49So we would have opened a buy position on the close of this candle over here. And I think the trade
04:54would have played out quite nicely. Now, the exact same confirmations would apply when opening a sell
04:59position. So we are currently looking at the GBP-JPY-OTC currency pair. And the first thing we
05:05need to do is identify the short to medium term trend in the market. To do this, we're going to
05:09jump straight over to the 15 minute time frame. On the 15 minute time frame, we can clearly see that
05:14the price is in a downtrend. Why? Well, the price is creating lower lows and lower highs. Because the
05:20price is on a short to medium term downtrend, we'll be focusing on opening sell positions only.
05:25Now that we know the price is on a short to medium term downtrend on the 15 minute time frame,
05:30we can go ahead and switch back over to the one minute time frame. Because we're focusing on
05:34opening sell positions only, we obviously know that the price is very much coming towards the
05:39downside on the 15 minute time frame. And it's very important that we see that exact same
05:43correlation with the one minute time frame. We need to see that the price is very much below the 50 EMA.
05:48And in this example, that is very much the case. Once you've identified the short to medium term
05:54trend in the market, we now need to wait for our second confirmation, which is provided by the
05:59stochastic oscillator. We need to see that both the blue and orange lines are above the blue 80%
06:04marker on the stochastic oscillator. This essentially means that the price is considered to be overbought,
06:10and this would be a good time to enter a sell position. Now keep in mind that just because both
06:14blue and orange lines cross above the 80% marker doesn't mean you should recklessly enter a sell
06:19position. We need to wait for the blue line to cross well below the orange line before entering
06:24a sell position. In this example that I've picked out over here, the blue line crosses well below the
06:29orange line over here, making this a great time to enter a sell position. I just thought I'd let you
06:34guys know if you're focusing on opening sell positions and you see there's a couple of candles above
06:39the 50 EMA. It's not the end of the world. You just need to ensure that the candles are not well
06:44above the 50 EMA. The same thing applies when opening buy positions, just the opposite. If there's a
06:50couple of candles below the 50 EMA, not the end of the world, you just need to ensure that the candles
06:55are not well below the 50 EMA. Okay, so let's just recap on that real quick. In order to open a buy
07:02position, we need to see that the price is in an uptrend on the 15-minute time frame. Now, the second
07:07confirmation we need is to see that the price is well above the 50 EMA on the one-minute time frame.
07:13We also need to see that the price is oversold on the stochastic oscillator, and once the blue line
07:19crosses above the orange line in the oversold zone, we know this is a good time to buy. When it comes to
07:25opening a sell position, we need to see that the price is in a downtrend on the 15-minute time frame.
07:30Now, the second confirmation we need is to see that the price is well below the 50 EMA on the one-minute
07:36time frame. We also need to see that the price is overbought on the stochastic oscillator, and once
07:41the blue line crosses below the orange line in the overbought zone, we know this is a good time to
07:46sell. So, now that you guys understand the basics of this strategy, the ins and outs of how this
07:52strategy works, when it comes to physically opening a trade, you'll mainly be on the one-minute time
07:58frame opening five-minute positions. If you guys are still unsure of what's going on, what I'm going to
08:04do is get into a couple of live trades to show you guys exactly how I would trade this strategy,
08:10allowing you to get a better idea on how to trade this strategy effectively. So, please, sit back,
08:16relax, and enjoy.
08:46step one!
08:55step one free
09:07step two-step
12:15And subscribe to the channel if you are new and I'll see you in the next one.