Finding a highly profitable quick term trading strategy can be difficult and sometimes hard to apply, fortunately for you guys today I am going to provide you with one that not only has a great success rate but also is pretty simple to use. Checkout the top 5 free charting solutions for binary options. This indicator is a trend generating and trend finding indicator that applies itself directly into the price action of our targeted assets.
The Derivative Oscillator is a unique technical analysis indicator solely because it uses the assets momentum to formulate and generate there signal output. Before we can apply this indicator into our trading strategy we need to make sure that the time frame that we are watching our asset is set on 5 minutes, since this is a 5 minute strategy. Any time frame watched outside this will affect the accuracy of the signals generated.
In addition, this indicator works best for high volume stocks and low volatility currency pairs. Some of the more popular high volume stocks that would work great for this strategy would be Apple, Nike, Exxon and Amazon.
Now that we have all the basics set up we can look into applying this indicator into a trading strategy. In the picture below you can see an example of how this indicator would look when applied to our trading strategy.
If you look closely you can see how the derivative oscillator bars go in the same direction as the price action candles, or it will predict it and you can see how it changes and how the price also then follows suit. We have three trading opportunities in this example and all three of them end up as winners. In order for a trading signal to be generated we need to wait for one step to happen and one confirmation. The one step would be that there is a change in direction in our derivative oscillator indicator.
Meaning that if there is a negative candle below the 0. The confirmation is if the candle forming above or directly next to our derivative oscillator is heading in the same direction as that candle, if it is then we are good to place a trade in that direction for an expiry time of 5 minutes.
Best of luck, and if you have any questions or comments please feel free to leave them below! Thank you for this strategy. However, I am unable to see the screenshot.
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It does not appear open in either Google Chrome nor Firefox. Any advice on how to open the photo? The photos are no longer available, unfortunately. Find an up to date strategy section here: Dear Mike, Please how can set the derivative Oscillator in MT4, as it is not in the list of MT4 indicators.
What is the best platform to use Derivative Oscillator? There are quite a few derivative oscillator-based indicators that are not compatible with MetaTrader4 I have noticed unfortunately.
When this occurs I would suggest just using http: Who knows, you may even enjoy them more than MetaTrader4! But i cant find the Derivative Oscillator indicator on Investing. Your feedback will be highly appreciated. Thanks and Cheers, Nirban. Yes this also is an applicable Forex trading strategy. Make sure to stick to low volatility currency pairs when Forex investing and using this strategy!
Thank god i found this strategy for me it is working awesome, does this strategy could work with forex and how. Hi Guys, great strategy it seems, I will soon start using it and tell you the results. On the other hand if it is 5 minutes chart and the trading is with 5 minutes expiry, that is the next bar only. Any feedback will be highly appreciated. Thanks for share this strategy with us for me is working great my question is could it be possible to implement with forex and how.
Any technical indicator should be applicable to any charting solution therefore it should work in tangent with any trading platform. However, since this is strictly a 5 minute trading strategy you will have to tweak and customize the settings of the Derivative Oscillator to a longer time period since you would be amping up your time frame window.
Hope this helps you out some! I like to ask you if this derivative oscillator will work with tradlogic platform of my broker with 15 min expiry time. I know the DO runs off of old price levels that can be changed to different periods of time. If I were you and you really wanted to use this trading strategy I would branch out to MT4 or freestockcharts.
If you have any more questions you can email me if you want at: Great question and also by the way great results!
If you were really trying to change this to a one minute trading strategy then I would recommend that you toggle with the settings some, it get really difficult to predict with an oscillator technical indicator what settings you should use if less than 5 minutes. If I were you though I would slowly tweak them and then add a SMA line with a period of like 3,5, or 6 to that charting solution to act as a signal generating line.
Hope this kind of helps out out! Thanks for this strategy! You did mention that some of the setting would have to be adjusted for different time frames, so curious what settings you would recommend for 1 min for this indicator? Those are settings that you have to play with, make sure to use that indicator during the New York or Asia trading hours and make sure it is not a day before or closing of the weekend.
The recommended period settings that I have for this strategy are 14 5 3 9. I highly recommend using these settings when using this 5 minute trading strategy! I have been using the DO along with an 8 period EMA and it works well. The DO may do a slight change of diection but the 8 period EMA keeps you in the trade. When both agree,then go in the direction both point. All you have to do is click on Add Indicator, Scroll Down, Find It, Select It and It Adds To Your Chart Automatically.
Hi guys… is the Derivative Oscillator the same as the awesome Oscillator that is available on investing. I am able to program and backtest binary option strategies on the last year.
Then I can study the results according to months in the year, days in the week and hours in the days. To get a idea, by following the rules, the results remain close to this example: I have been testing it and it has a very high ITM rate for me. I have one quick question, Mike said in the comments that Titan Trade has the 5 min trade option. Where can i find the 5 min option on Titan Trade.
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How are you doing today? It all depends on the type of news to be honest! If I were you I would only place trades during the New York market hours with a limit of trades per trading day.
That way you make sure that you are not overtrading, which is one of the biggest problems made by novice traders. When trying to add an indicator on http: Select on add indicator, scroll down until you see the indicator and just double click it to add it to the chart!
I just have to handle the psychology and mindset. I still get too emoptional so I have to walk away and take it a little slow. But feel very good. If I were you I would highly recommend using this trading strategy during the early hours of the New York trading session. I hope this helped, have a great day! The reason I ask the above question is that I would like to verify the signals received from optionbot2.
It works but you have to log in to YouTube to watch this specific video.. I like to use this strategy during the New York trading hour session. It is just the most convenient for me then and the markets are strong during that trading session.
By definitive I mean that is looks absolutely certain that the trend will reverse and continue to go in the opposite direction. If you want to wait for a confirmational second candle you can, however, it is not necessary, once you see the reversal take place on the D.
If I am correct what you are saying is that we do not trigger a trade at first candle bar of the oscillator, we wait for the second bar before taking a trade. Does this is available for tos? And do I wait for candle close or just trade on the exact moment I see both in the same direction? Definitly keep up the good work! Great question, thank you for asking it! That would be great if so but the D.
If you are stuck on the idea of having an alarm set I would wait until you have a couple consecutive candles formed and then set a predicted price level for the charting solution to alarm you at if price was to break this level. When you are setting this predicted level though I would have it set in the opposite direction, not heading the same way as the trend. Because this is a reversal oriented strategy here, so we are trying to predict when it was reverse.
That is just my recommendation, great questions and thank you for asking them! I hope this helped you out! Thank you for this wonderfull method. In other words, do I have to wait until the direction is definitive? I can only find alarms for price notifications. If the Derivative Oscillator candle is crossing above the level 0.
If the DO candle is crossing below the level 0. Basically you wait for a cross to occur in the Derivative Oscillator, meaning that if the DO candles are below 0. I realy do not get the drill on the conditions to trigger the trades. Please send me an email at tradingbinaryonline gmail. Hi Jan, for this particular indicator I would recommend using TradingView. Hi Mike, I am fairly new to Binary — would like to start making some profitable trades on a small scale and increase things gradually to give me a chance to learn and understand all this stuff — without necessarily having to get a software or robot I have done this when I started and they were useless and lost me all my money brokers were not too good either.
Any tips, advice would be most welcome. Hi Sherret, Welcome to the world of binary options and thank you for visiting my blog! There is nothing more gratifying than making it on your own! Here is a link to a Free Demo Account hosted by Spot Option, a binary options technology provider. I also encourage you to checkout some of my recent strategy videos on YouTube and you can start with my Binary Options Strategies — tutorial video, on how to make use of my strategies, free online tools and the investing.
I also posted this article on Important Facts and Tips for Binary Options and I encourage you to check it out as well. If you run into any questions, I am available at tradingbinaryonline gmail.
Thank you for the suggestion, please keep us posted if this continues to look like a good second strategy as well! Hey thank you very much Sehan!
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I try my best to help you guys succeed and it is always extremely rewarding knowing that I can help others reach their goals and dreams.
Ideally, the Derivative Oscillator can work on any type of expiry time…. I had 11 trades and 8 of them were winning trades.. Thanks… keep up your good work…. I am very keen to learn the way of doing binary trading in past i have lost quite enough money and after reading your strategies i see some hope.
Hi Raj, please email me at tradingbinaryonline gmail. I see a few traders having difficulties with the Derivitive Oscillator.. Does anyone know which Broker platform offers the 5 minute trading.
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The two brands accept Canadian traders. When using this trading strategy I like to trade once the oscillator changes directions, you can wait for a confirmation candle to form to verify that the trend is trading however I usually just enter the trade after the reversal is made.
Hope this helped you out! Hi, Can someone clarify the setup. Once the oscillator changes direction do we trade then or do we wait for the next 5-min candle? For example lets say I made 10 trades using the one strategy but a couple of trades per currency pair.
I hope I made sense and keep up the great work guys. You will need to upload the Derivative Oscillator indicator to MT4. I can always email you the file, just email me at tradingbinaryonline gmail. You can also download the indicator free from this link http: It would be great if MT4 had this oscilator, I tried to look for it a little, but it seems like it is nowhere on popular pages.
Anybody has it for MT4?? Hi Damian, Checkout This post http: I need some advises and if possible can I have your private email or skype room ID, so I can get more information. Hi Sara, Thank you for visiting the BinaryoptionsChannel.
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