Dual Stochastic + KAMA Binary Options Strategy

If you are looking for a new effective binary options strategy, Dual Stochastic combined with the Kaufman Adaptive Moving Average strategy might be the one for you. The main goal of this strategy is to find the most suitable moment for an entry – one that may offer the best conditions. 

To help traders catch the right moment to make a move, this method combines one of the best stochastic strategies and a powerful trend indicator. Together, they can tell you about the trend direction and provide binary options signals for top-notch results.

If you are already familiar with the Dual Stochastic and the Kaufman Adaptive Moving Average indicator, feel free to proceed directly to the strategy description below. However, if you aren’t using stochastic for day trading or haven’t applied the KAMA indicator yet, start by taking a look at the basic rundown of these tools separately.

What is the Dual Stochastic?

The Stochastic Oscillator is a momentum indicator commonly used in binary options trading strategies. It shows the oversold and overbought levels and can point to an upcoming trend reversal. 

The indicator itself consists of 2 lines. %K (blue line) shows the period depending on the chosen candlestick timeframe. It may be displayed in months, weeks, etc. The %D (red line) is a simple moving average of %K.

You can use this indicator on its own or double the power by applying 2 Stochastic Oscillators at once. This is called the Dual Stochastic – one of the best stochastic strategies for improved accuracy. To learn more about this binary options strategy, check out this material – Double Stochastic binary options strategy with x2 prediction accuracy.

The next step to achieve even more impressive results in your binary options trading would be to combine the Dual Stochastic with other technical tools, like KAMA.

What is Kaufman Adaptive Moving Average (KAMA)?

KAMA is a trend indicator that works as an adaptive moving average. It doesn’t show minor insignificant price changes, which helps eliminate some false signals. Instead, it focuses on the main dominant trend and its direction. A Kaufman Adaptive Moving Average strategy can be used on its own and may offer the following binary options signals.

However, the Kaufman Adaptive Moving Average strategy works better in combination with other technical analysis tools. Let’s see what it can do together with Dual Stochastic.

Dual Stochastic + KAMA Binary Options Strategy 

To get accurate results with the Dual Stochastic and Kaufman Adaptive Moving Average strategy, you should apply the right settings.

Set Up the Indicators 

First, let’s apply the correct KAMA settings. Go to the Indicators tab of the traderoom and type KAMA in the search. Then input the following settings.

After you have applied the KAMA settings, go back to the Indicators tab and search for the Stochastic Oscillator. Here’s where it gets interesting: to use 2 Stochastic Oscillators at the same time, you will need to choose different settings for each one of them. 

To begin, apply the following settings to the first Stochastic Oscillator. This one will be the slower indicator, representing the larger overall trend.

Make sure to pick different colors for each indicator’s lines so that it’s easy to see the difference between them on the chart. You can do that in the Colors and display section of the indicator settings. For instance, we chose purple for the first Stochastic Oscillator.

Now let’s move on to the second Stochastic Oscillator. It will be a faster indicator, showing smaller movements within the trend. Here are the indicator settings you should apply.

Similarly to the previous Stochastic Oscillator, you might want to pick a different color for the indicator lines. We picked yellow for additional contrast.

Get Binary Options Signals

Once you have applied the indicator settings, it’s time to learn about the possible binary options signals. 

Higher 

It might be the right moment to hit the HIGHER button if the following conditions are met.

1. The price chart is above the KAMA line, which indicates a bullish trend.
2. The slower Stochastic indicator (purple-colored lines on the graph) hits the overbought level, confirming bullish market sentiment.
3. The faster Stochastic indicator (yellow-colored lines on the graph) reaches the oversold level, indicating that the pullback from the main trend has finished.

Lower

When it comes to the most appropriate time to open a LOWER position, keep an eye out for the following conditions.

1. The price chart is below the KAMA line, which indicates a bearish trend.
2. The slower Stochastic indicator (purple-colored lines on the graph) hits the oversold level, confirming bearish market sentiment.
3. The faster Stochastic indicator (yellow-colored lines on the graph) reaches the overbought level, indicating that the pullback from the main trend has finished.

Keep in mind that, as with many binary options strategies, you would need to act fast to ride the trend. The market conditions change quickly, so don’t hesitate to make a move once you notice the signals from this indicator combo.

In Conclusion

Dual Stochastic + KAMA Binary Options Strategy can offer great results and provide binary options signals for effective trading. When using this approach, make sure to apply the correct settings for better technical analysis and improved results. Once you have applied these tools, keep an eye on the price chart to catch binary options signals and open a trade at the best possible moment.