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How to combine the Awesome Oscillator with the SMA to trade 5-minute binary options on IQ Option


Awesome Oscillator and SMA strategy IQ OptionThe strategies are often based on a few indicators. To apply a strategy successfully, a trader ought to get familiar with the indicators that are used in a particular strategy. Then, he can decide whether it is a method well suited for him or maybe, he shall search further. So let's talk about one of the strategies that combines two indicators, the SMA and Awesome Oscillator.

Preparations

The very first thing you have to do is to log into your IQ Option account. Then, pick the financial instrument you intend to trade this time. You will also have to set the chart. My recommendation is the Japanese candlesticks chart as most of the strategies are clearly visible on it. The candles period should be adjusted to 1 minute.

The next step is to add indicators used in this particular strategy to your IQ Option chart. To do this, click on the indicators icon and select the Moving Average. Make a necessary change that is set the period for 100 and type SMA (Simple Moving Average). The colour and thickness settings can be changed as well. Choose the one most transparent to you.

Use simple moving average with a period of 100
Use the simple moving average with a period of 100

Now, you repeat the procedure for an Awesome Oscillator. You do not have to introduce any changes here as we will use default settings.

Once, both indicators are added to your chart, click the indicators icon again. Under the tab “Added” you will see the tools you are currently using. The IQ Option platform gives you the opportunity to save the template so you can use it in the future with one click only. Provide a name for your new template, then just click the “Save” button and it will be available under the “Templates” tab.

You can save a template for this strategy
You can save a template for this strategy

How the strategy that combines the SMA and the Awesome Oscillator works

Your chart should look similar to the one below. There is the SMA moving along with the price bars and the Awesome Oscillator window displayed below. Your job is to watch the SMA first and wait for a moment where it goes through the price bar. After this happened, you check with the Awesome Oscillator and if its bar is in the much-needed colour, you enter the trade.

1-minute EURUSD chart with our awesome template
1-minute EURUSD chart with our awesome template

Opening a long trade with the awesome strategy on IQ Option

You are waiting for the uptrend to develop. Then, you are waiting for the SMA to cut through the price bar. Look at the AO histogram. If it is showing a green bar, you have got a confirmation for your trade. Open a long position that lasts 5 minutes.

Signal to open 5-minute up trade
Signal to open 5-minute up trade

Opening a short trade with the awesome strategy on IQ Option

Analogically, you are waiting for the downtrend now. Once it has begun, you should follow the SMA line. Wait for the moment when it crosses the price bar. Then, check with the AO histogram. The colour of the bar should be red. Now, you can open a short transaction. With 1-minute as a chart time frame, your option should last 5 minutes.

Signal to open 5-minute down trade
Signal to open 5-minute down trade

Summary

The combination of the SMA and the Awesome Oscillator is quite easy to use. Especially, with the option to save your favourite templates. It just makes your trading smoother. All you need to do is click on the strategy name you have saved before, and all the indicators needed will be added to the chart. Then, you will have to show some patience. Patience is very important in the trading business. It is not wise to rush into the trade. You must always wait for the confirmation from both, the SMA and the Awesome Oscillator. This increases your chances of success.

It is also recommended that you give yourself some time to practice new strategies you have learned. The IQ Option practice account is an excellent place designed for this purpose. After you got hold of using the awesome strategy, you can switch to the live account and start to make profits.

We wish you success!

 

 

 

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Bart Bregman

Fulltime Day trading, and help Iq option wiki in my spare time to build an awesome platform to help beginners out there. #digital nomad, traveling all over the world.

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