Three in a Row Strategies

Profitable binary options trading presupposes an effective trading strategy. Otherwise, there is a high probability of losing the invested funds. The “Three in a row” strategy is an indicator trading system that combines the most effective computer analysis tools. Despite the fact that this technique is not new, it is still possible to show high results in trading with its help.

Trading strategy indicators

The “Three in a row” method is based on such indicators as:

  • Stochastic;
  • RSI;
  • Simple Moving Average (MA).

The secret of the high efficiency of the system lies in the fact that the complex use of the mentioned computer analysis tools provides good filtering of false signals for the purchase of an option. These indicators complement each other well. Their joint use in trading will ensure a stable increase in initial investments even when working with small time intervals.

Moving averages with different parameters are used in almost every indicator strategy. Even some oscillators have been developed based on these tools. The intersection of the movings indicates a trend change. This signal is used by many professional traders. The key advantage of moving averages is the ease of use and clear interpretation of trading signals.

The Relative strength Index (RSI) is necessary to determine the direction of the current trend and its intensity. The standard settings of the oscillator assume the use of levels 30 and 70, which are the boundaries of overbought and oversold zones. To work on the “Three in a Row” strategy, the use of these values is not required, therefore, when installing the indicator on the price chart, it is necessary to remove unnecessary levels in the settings and add the 50 milestone. This is the center of the additional oscillator window. If the RSI curve is formed above the level of 50, it will indicate the presence of an upward trend in the development of the asset value, if lower – a downward trend.

The strategy also uses the Stochastic indicator with standard settings. In the additional window of this oscillator, you can see the levels 20 and 80. If the moving averages intersect within one of them, after which they move in the opposite direction, then this indicates a good opportunity to buy the corresponding option.

For the “Three in a Row” strategy to work correctly, you will need to correctly configure the necessary indicators:

  • 2 simple moving averages on the price chart with periods of 5 and 10 (for a comfortable visual perception, it is recommended to paint them in different colors);
  • RSI with a period of 14 and a level of 50;
  • Stochastic with standard settings 14,3,3.

It is possible to work according to the “Three in a row” strategy with any asset regardless of the timeframe. However, it is important to note that the older the time interval of the price chart, the more accurate the received signal will be. In addition to binary options trading, this system can be effectively used when working on the stock or currency markets. If the system is used to earn money on binary options, then the recommended contract execution period should correspond to the formation period of 3-4 candles. For example, if the analysis is performed on the m15 chart, the expiration period will be 45 or 60 minutes.

Recommendations for improving trading efficiency

The “Three in a row” strategy is an effective method of earning money in any financial market. Novice traders should give preference to working with charts with time intervals from H1 and above. This will significantly reduce the intensity of the trading process, but will have a positive effect on the quality of signals. Over time, it is possible to change the timeframe to a lower one.

According to statistics, the signals received from the indicators of the “Three in a row” strategy are 70% effective. Therefore, you should choose assets with the highest percentage of payments for work with the correct forecast. The rates can be found on the broker’s website or request information from the customer support service. In addition, it is important to give preference to brokers that provide users with the opportunity to close profitable contracts ahead of schedule with lower payouts.

More experienced traders can use the Martingale method in combination with this trading system. Beginners are advised to refrain from such a trading approach, since the result is unpredictable. If you follow these rules of the strategy, then there will be no need to apply the principle of doubling the amount of the initial investment.

The “Three in a row” trading system is an effective method of earning money in any financial market. The strategy algorithm involves the use of time-tested indicators and traders. If you follow the rules of the strategy and show self-discipline, it is possible to achieve impressive results when working with binary options.