Divergence (15 min.)

LEVEL: ADVANCED

A strategy based on divergence that is easy to implement, but – naturally – cannot be used without consideration. Bear in mind that it is not up to the system to make a decision for you, the system’s there to help you make it.

Set-up:

This strategy is based on 2 indicators: ValueChart and CCI Divergence.

CCI Divergence is displayed in 2 configurations on different displays (20 i 40), so that more signals are generated.

We set ValueChart on overbought and (oversold) levels 7 and -7.

Usage:

We observe ValueChart display and wait until the set levels of overbought and oversold are crossed.

We then watch the chart in M15 time interval and check whether the candle reaches (but not crosses) the level of support and resistance. If this condition is met, we wait for the next candle to open and check whether a signalling arrow appears on the CCI Divergence display (it doesn’t matter which display, it can be seen on both as well).

CALL option:

  • The end of the Value Chart candle – green.
  • Wait for the next candle to open.
  • An upward arrow appears on one of the CCI displays.
  • We open an option with the expiry date set on the end of the 15-minute candle.

PUT option:

  • The end of the Value Chart candle – red.
  • Wait for the next candle to open.
  • A downward arrow appears on one of the CCI displays.
  • We open an option with the expiry date set on the end of the 15-minute candle.

Additional information:

  • It’s recommended to use this strategy in the London sessions.
  • Recommended assets: AUD/USD, EUR/ USD, GPB USD, NZD/USD, gold.
  • Avoid playing 20 minutes before and after important market news (high and medium priority), on Fridays and at the end of the month.
  • Avoid strong trends.
  • This strategy may also be effective in M15 time interval and a 5-minute expiry time, but there’s little time left to set the options.

Recommended brokers:

Any broker that offers a fixed expiry date every 15 minutes, e.g. OptionTime, TopOption, OptionTrade. So that if we get the signal at 12:01, the expiry date will be 12:15 and not 12:16.

Examples:

Download a basic strategy (template + indicators):

watchbinaryoptions_divergence

Download an improved strategy:

VIP section



2015 WatchBinaryOptions

Please note that binary options trading is a high­risk activity. Information on watchbinaryoptions.com does not constitute an offer, nor should it be considered as recommendation or request to buy or sell. Information on watchbinaryoptions.com should only be considered as opinions of private persons and companies cooperating with the service.

Although watchbinaryoptions.com does its best to make sure that all the information is complete and accurate, it cannot be guaranteed. Therefore, the service cannot be held culpable for any and all losses, including losses directly or indirectly connected to using or relying on the information found on the website.

WatchBinaryOptions.com has been created by a private person. It is also managed and administered by a private person. WatchBinaryOptions.com is not a company website. If you have any additional questions please do not hesitate to contact me via the contact form.