I’m trying to understand a setup that uses three moving averages for binary options. I chose periods of 5, 20, and 50, watch the chart on a one-minute timeframe, and wait for the faster lines to align in the same direction. But sometimes there appears to be a crossover, and then after a couple of candles the price reverses. In short, I’m not sure whether to consider such a moment normal noise or whether I’m choosing the wrong entry timing.
In essence, this is the three-moving-average binary options strategy, but in the descriptions I’ve found, people interpret the signal differently: some wait for complete alignment, while others enter after just two lines cross. I’m still testing everything on a demo account and don’t want to draw conclusions from a few successful trades. For those who have used this approach, which filter actually helped you eliminate false signals?
In essence, this is the three-moving-average binary options strategy, but in the descriptions I’ve found, people interpret the signal differently: some wait for complete alignment, while others enter after just two lines cross. I’m still testing everything on a demo account and don’t want to draw conclusions from a few successful trades. For those who have used this approach, which filter actually helped you eliminate false signals?