The best indicators for trading binary options: trading system Mountain

If you prefer trading with indicator strategy or are looking for a simple approach to make large amounts of profit, you might be interested in the Mountain method of trading, which has long been a hot topic in forum discussions. Today we will introduce it to our readers. You should also check out our review on the The Heiken Ashi Indicator.

Trading system for binary options Mountain: technical parameters

The Mountain strategy is an indicator type approach with a very traditional technical base. The strategy template includes the most well known option trading indicators: the MA (moving average), MACD and RSI. The trick of the technique are the settings of these technical tools, which the traders have been constantly improving. As a result, today the strategy works on: the MA indicator of the exponential type (determines the trend); the MACD indicator with additional settings that allow to clearly determine the trend turn and its actual direction by excluding the market noise); and the RSI indicator, which shows clear short-term trend reversals. Thus, the indicators that this system consist of filter each other’s signals to generate an unambiguous, reliable one. With that trading signal, traders enter the market with a 87% guarantee of closing the position with a profit.

How to build the technical template of the trading system

To create a technical template on the asset’s chart, you will need a trading platform with integrated technical indicators and specific settings options. In this article, we will explain the strategy using the platform developed by the Binomo broker. Once you’ve selected the underlying asset, switch the displayed timeframe to M1 — that allows trading at a moderate pace. Add the following automatic indicators from the toolbox to the chart:

– MA: period 20, type Exponential;

– MACD: set at 25/50/9;

– RSI: period 10, level marks 70 and 30.

The technical markup of the chart formed by the above settings will be the following:

Binary signals of the Mountain tactics

Once the strategy template is set, you can start detecting signals and purchase option contracts. When monitoring the technical tools displayed on the chart, we need to wait for each of the indicators to generate its part of the complex signal: the RSI moving making a turn at an extreme level and building its own trend line, the price crossing the EMA line and the MACD lines intercrossing. The direction of all indicator lines should be the same.

A CALL option contract (predicting increase of the price) is purchased when:

• RSI moving makes a turn at level 30 and displays a growing market trend;
• The asset quotes that stayed below the EMA moving break it in an upward direction;
• The lines in the MACD window form an intersection in an upward direction.

A PUT option contract (predicting decrease of the price) is purchased when:

• RSI moving makes a turn at level 70 and displays a falling market trend;
• The asset quotes that stayed above the EMA moving break it in a downward direction;
• The lines in the MACD window form an intersection in a downward direction.

Expiration and Money Management

Since we’re trading on a one-minute timeframe, the optimal expiration time will be from 3 to 10 minutes (depending on the level of market volatility and the “impulsiveness” of the trend). With this particular strategy, we do not recommend to work on timeframes of less than a minute.

To ensure that your trading account is not emptied by a series of unprofitable contracts, we recommend each binary contract to remain within 3-5% of the total amount of available trading funds. With modest trading funds, it is recommended to start from concluding $1 contracts until you gain a desired amount on your account.

“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”