The best combination of indicators.

[Sr.Necro369]

I'm looking for some tips on how to combine indicators to get a correct signal at 1 minute or 5 minutes

 

[superalal]

Combining indicators effectively to generate accurate signals for binary options trading on 1-minute or 5-minute charts requires a well-thought-out strategy. Here are some tips on how to combine indicators to achieve better results:

### 1. **Use a Combination of Trend and Momentum Indicators**

**Trend Indicators:**
- **Moving Averages (MA)**: Use a combination of short-term and long-term moving averages (e.g., 9 EMA and 21 EMA) to identify the trend direction. When the short-term MA crosses above the long-term MA, it indicates a bullish trend, and vice versa for a bearish trend.
- **Bollinger Bands**: These can help identify the volatility and potential reversal points. When the price touches the upper band, it might indicate an overbought condition, and the lower band might indicate an oversold condition.

**Momentum Indicators:**
- **Relative Strength Index (RSI)**: RSI can be used to identify overbought or oversold conditions. An RSI above 70 indicates overbought conditions, while an RSI below 30 indicates oversold conditions.
- **Stochastic Oscillator**: This is another momentum indicator that shows the position of the current price in relation to its range over a certain period. Over 80 is considered overbought, and under 20 is considered oversold.

### 2. **Combine Indicators for Confirmation**

- **Moving Averages with RSI**: If the moving averages show an uptrend and the RSI is above 50 but not overbought (below 70), it confirms a buy signal. Conversely, if the moving averages show a downtrend and the RSI is below 50 but not oversold (above 30), it confirms a sell signal.
- **MACD with Bollinger Bands**: The MACD (Moving Average Convergence Divergence) can be used to confirm signals from the Bollinger Bands. For instance, if the price hits the lower Bollinger Band and the MACD shows a bullish crossover, it can be a strong buy signal.

### 3. **Incorporate Volume Indicators**

- **Volume**: Look for spikes in volume to confirm the strength of a trend. For example, if there is a price breakout with high volume, it is more likely to be a sustainable move.
- **On-Balance Volume (OBV)**: This indicator helps to confirm the price trends by showing the flow of volume. An increasing OBV along with rising prices confirms an uptrend, while a decreasing OBV with falling prices confirms a downtrend.

### 4. **Timeframes and Market Conditions**

- **1-Minute Chart**: For very short-term trading, use indicators that react quickly to price changes, such as fast-moving averages (e.g., 5 EMA and 10 EMA) combined with the RSI.
- **5-Minute Chart**: Use slightly longer indicators like the 21 EMA and 50 EMA along with the MACD or Stochastic Oscillator to get a clearer picture of the trend and momentum.

### 5. **Backtesting and Practice**

Before applying these combinations in live trading, backtest them extensively to understand their performance under different market conditions. Use demo accounts to practice and refine your strategy.

### Example Strategy
- **1-Minute Chart Strategy**: Use a 9 EMA and 21 EMA to determine the trend, with the RSI to confirm the entry points. Look for crossovers of the EMAs with the RSI above 50 for buy signals and below 50 for sell signals.
- **5-Minute Chart Strategy**: Combine the 21 EMA and 50 EMA to identify the trend. Use the MACD for confirmation, looking for MACD crossovers in the direction of the trend confirmed by the EMAs.

### Additional Tips
- **Avoid Overloading Indicators**: Too many indicators can create conflicting signals. Stick to 2-3 indicators that complement each other.
- **Market News and Events**: Be aware of major news events that can cause significant market movements and affect the accuracy of technical indicators.

By combining these indicators and refining your strategy through practice and backtesting, you can increase the likelihood of generating correct signals for binary options trading.

### References:
- [Investopedia - Technical Indicators](https://www.investopedia.com/articles/technical/02/121702.asp)
- [Trading Strategy Guides](https://www.tradingstrategyguides.com/)
- [BabyPips - The Beginner's Guide to Forex Trading](https://www.babypips.com/)

 

[ruman]

I have many strategies. For all the time frames, due to privacy and copyright i wont post it cos i will respect that. Feel free to PM to ask for what you want. DO not ask for all i have