Many binary options traders look for a strategy that is simple and can bring quick results. The triple trend strategy offers both and much more. Let’s look closer at this binary options strategy and figure out how to use it for trading.
What is the Triple Trend Strategy?
This binary options strategy focuses on the main trend. It uses 3 great technical tools – KAMA, ATR Trailing Stops and Qstick – to assess the trend from different angles. This allows traders to find the best moment to enter a deal at the optimal price.
Let’s first take a look at these 3 instruments separately to learn how they operate. If you’re already familiar with KAMA, ATR Trailing Stops and Qstick, feel free to skip to the binary options strategy settings on IQ Option in the next section.
KAMA (Kaufman Adaptive Moving Average)
KAMA is a trend indicator that works as an adaptive moving average. Its main goal is to remove false signals by filtering out minor price fluctuations. This allows traders to identify the main trend and determine its direction (usually upward or downward).
Some traders use the KAMA trading strategy on its own; however, it works best in combo with other technical tools as a part of a binary options strategy. Here are the main signals it may offer if used by itself.
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When the price moves above the KAMA indicator line, traders may look for an opportunity to enter a HIGHER position.
If the price shifts below the KAMA line, traders might consider going LOWER.
ATR Trailing Stop
The ATR Trailing Stops aims at helping traders maximize profits by adjusting their stop-loss to get the most of the market volatility. It consists of a single line and can be used separately, but performs best as a part of a binary options strategy. Here are the main signals to look for when using the ATR Trailing Stops stratgey for binary options trading.
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When the price moves above ATR Trailing Stop, you may consider opening a HIGHER position.
Qstick
Qstick indicator is a technical tool that focuses on identifying the trend on a candlestick price chart. It’s not widely popular among traders. However, the Qstick strategy can offer important information about trend behavior, making it a great addition to any binary options strategy. Generally, it may offer the following signals.
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If the indicator goes red, a LOWER trade may be in order.
How to Use the Triple Trend Strategy for Binary Options?
While each of these 3 technical indicators may provide valuable insights into the main trend, you can maximize the chances of success by combining them. Here is a set-up overview of this binary options strategy on IQ Option platform.
1. Apply the KAMA indicator with the default setting offered in the IQ Option traderoom.
2. Follow it by selecting the ATR Trailing stops tool from the list of available indicators. You can find it among the ‘Trend’ indicators or by simply typing its name in the search box.
3. Apply the Qstick indicator for a period of 7.
4. Set the candlesticks for 15-30 seconds.
5. Look for the same signal (either bullish or bearish) from all 3 indicators. Once you spot it, consider opening a trade with an expiration time of 2-3 minutes to get the most from this binary options strategy on IQ Option.
Example of a HIGHER signal (bullish)
To identify a bullish signal with this trading method, make sure to recognize all of these signs.
- The price is above both the KAMA and ATR Trailing stop indicator lines;
- The Qstick cloud is coloured green.
Once you observe these signals, it may be the right moment to open a HIGHER deal.
Example of a LOWER signal (bearish)
To detect a bearish signal using this binary options strategy on IQ Option, check that the price chart meets the following requirements.
- The price is below both the KAMA and ATR Trailing stop indicator lines;
- The Qstick cloud is coloured red.
Having noticed all these signals, you may consider hitting LOWER as your next move.
Keep in mind that no one strategy can provide 100% accurate signals all the time. You may need to test this strategy a few times before learning how to read its signals and use them in your binary options trading. Feel free to apply the risk-management tool such as Stop-Loss to cover your bases, maximize profits and reduce potential losses.
Have you already tried this binary options strategy on IQ Option? Share your experience in the comments!
