Binomo strategy: SMA 30 indicator combined with resistance/support

Binomo - SMA 30 indicator combined with resistance/support
Binomo – SMA 30 indicator combined with resistance/support

There is a certain standard formula to try get profit: SMA 30 INDICATOR COMBINED WITH RESISTANCE/SUPPORT. It is based on two important and reliable factors: trends and levels. A key role in this strategy is played by simple moving averages (SMA 30 indicator). In order to have a good step, you need to familiarize yourself with the main strategies.

Strategy Using SMA 30+ Resistance/Support

If you do not know these 2 indicators, you can review these two articles:

  • What is SMA indicator?
  • What is Resistance/Support?

Regarding this strategy, these two indicators and the SMA 30 are to determine the trend of the price. The levels (Support/Resistance) will be the signal for entry points.

Basic Settings For SMA 30 Trading Strategy

1-Familiar asset pairs: USD/JPY, EUR/USD, USD/CAD.

2-A 5-minute Japanese candlestick chart

3-.The expiration time of 15 minutes or above.

4-Setting up the SMA 30 indicator and identifying the levels of the price.

Binomo - Basic Settings For SMA 30 Trading Strategy
Binomo – Basic Settings For SMA 30 Trading Strategy

Formula For Opening Orders Using The SMA 30

After setting up the SMA 30 indicator, use it to determine the trend of the price. You need to remember repeat a little basic knowledge.
Prices in an uptrend: Candlesticks are above the SMA 30 and the SMA points up.

Binomo - Candlesticks are above the SMA 30 and the SMA points up
Binomo – Candlesticks are above the SMA 30 and the SMA points up

Prices in a downtrend: Candlesticks are below the SMA 30 and the SMA heads down.

Binomo - Candlesticks are below the SMA 30 and the SMA heads down
Binomo – Candlesticks are below the SMA 30 and the SMA heads down

Prices in sideways: The indicator goes sideways and keeps crossing candlesticks.

In this strategy, you can only open orders when the price goes uptrend or downtrend only.

Formula for opening orders:

Open an UP order = uptrend + the price touches the support (which is the broken resistance).

Binomo - Open an UP order = uptrend + the price touches the support
Binomo – Open an UP order = uptrend + the price touches the support

Open a DOWN order = downtrend + the price touches the resistance (which is the broken support).

Binomo - Open a DOWN order = downtrend + the price touches the resistance
Binomo – Open a DOWN order = downtrend + the price touches the resistance

Capital Management Method

Since this is a trendy trading strategy, the closer to the end of the trend is, the more likely the levels are broken or the trend is over. The most reasonable capital management method for this strategy is gradually reducing investment for later orders.

Use the profit of the previous order as the investment amount for the next order. If  you lose 1 order, better for you to stop trading and turn off your computer.

Binomo - Capital management method
Binomo – Capital management method

This method helps you manage your capital, and you can minimize the possibility of burning out  your account and protect your profits.

Important Things About This Strategy

When prices test the levels and a reversal candlestick pattern appears, you can completely ignore it.

Binomo - Important Things About This Strategy
Binomo – Important Things About This Strategy

As the example above, the price tests the support with a bearish reversal candlestick pattern (Evening Star). Then the price breaks out of the level and ends that trend.

If the price tests the levels with special candlestick patterns (Pin Bar, Pull Back, etc.), the rate will be higher.

Binomo - win rate will be higher
Binomo – rate will be higher

Do not open orders when the price is not completely in a trend.

Binomo - Do not open orders when the price is not completely in a trend
Binomo – Do not open orders when the price is not completely in a trend

Things to note about this strategy.

In the example above, the price only tests the level once after breaking. This cannot confirm that the price has entered a trend.

Some Opened Orders Using SMA 30 + Support/Resistance Strategy

1st order: The assets of USD/JPY The price broke out of the resistance, creating an uptrend. It then rebounded to test the level with a bearish candle => opened a 20-minute UP order.

Binomo - Some Opened Orders Using SMA 30 + Support/Resistance Strategy
Binomo – Some Opened Orders Using SMA 30 + Support/Resistance Strategy

Result of trade:

Binomo - the result of the 1st order SMA 30
Binomo – the result of the 1st order SMA 30

2nd order: The assets of EUR/USD. The price was in a downtrend. It then tested the level (the old support) with a Pin Bar candlestick. This was a very good signal that the price would plummet => opened a 30-minute DOWN order.

Binomo - The price was in a downtrend. It then tested the level (the old support)
Binomo – The price was in a downtrend. It then tested the level (the old support)

Result of trade:

Binomo - the result of the 2nd order SMA 30
Binomo – the result of the 2nd order SMA 30

You can try this  strategy on a demo account. Do not forget to leave any comments and questions in the comment section.

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