Bow Tie strategy
Moving average is one of the most effective technical indicators So say the experienced stock exchange traders, and you can easily see that for yourself. For using this strategy, you need to configure 3 moving averages and monitor their crossing so as not to miss a good signal of the option market.
How to set a template
“Bow Tie” implies using three moving averages. Select them in the lower left corner of the platform:
The first indicator should be set as follows:
- type – Exponential
- length – 30
- color – red
The second indicator should be set as follows:
- type – Exponential
- length – 20
- color – light blue
The third indicator should be set as follows:
- type – Simple
- length – 10
- color – white
Then three lines appear on the chart. Their crossing at one point shall be a signal to make a transaction:
How to make transactions
It is recommended to trade UPWARDS, if all three moving averages crossed in the upper direction:
It is recommended to trade DOWNWARDS, if moving averages crossed in the lower direction:
Expiration periods and money management
We recommend to choose a time frame of 1 min and expiration time of 15 minutes.
Reduce trading risks by using no more than 3% of the amount available on the account when making a transaction.
