Leave a Reply Cancel reply Your email address will not be published. Binary options traders employ the RSI oscillator to confirm the Bollinger bands tendency and trade accordingly. The Crossover of Moving Averages Strategy. I know, I post strategies on several websites including my own. They are usually used in combination with other indicators such as trend levels and volume.
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The Bollinger Bands will show if the prices are high or low on a relative basis. This information has proven to be very useful for trading and when they are combined with any other proven indicator or analytical tool for confirmation.
They give an edge to anticipate a price movement with an acceptable certainty. Binary options traders consider Bollinger bands one of the best indicators for its simplicity and its easy to read structure and readability to identify the prices tendency or the price oscillation. These bands can be used to process and analyze any period of time with a high sensitivity for a future price estimation.
This triggers a sell signal. This triggers a buy signal. Each time the Bollinger bands identify an oversold condition, the price of the asset will experiment a reversal. This is a clear signal for buying the asset and get profits when the price increases. Each time the Bollinger bands identify an overbuy condition, the price of the asset will experiment a reversal.
This is a clear signal for selling the asset to avoid a loss when the price drops. Combining these two financial tools for confirmation of the price momentum is considered one of the most accurate ways to anticipate the price movement direction. Binary options traders employ the RSI oscillator to confirm the Bollinger bands tendency and trade accordingly. The opposite is also a common practice using the RSI oscillator to identify the price tendency and confirm it with the Bollinger Bands.
In our strategy we use values of period 6 and deviation 2. Strategy its very simple to understund. We recomend to use for this strategy martingale as money managment system see more about martingale in Money Management page but not more than times in roll! When Candlestic are crossing upper bollinger band, and RSI line is moving beetwen margins. If candlestic cross bollinger band, and also cross RSI upper margin than do not invest.
As a reminder, if your new to trading binary options, we encourage you to test your skills with our trading strategies on a Demo Trading Account. This will help you familiarize yourself with online trading and how it works, without risking real money. If your ready to invest and make profits, be sure you register yourself with a Reliable Broker with a solid reputation and great customer support.
In order to start using this popular binary options trading strategy, first you need to set the time frame of your chart to 5 minutes. You will need to set up two different moving averages; one set at Blue and the other set at Red. There is no need to change these settings.
Using the bollinger band strategy, you will need to identify three conditions: Identifying the overall trend of a select currency is found by looking at the positions of both Exponential Moving Averages EMA.
By crossing the upper band, look for an engulfing Bearish candle. If it crosses the lower band, look for an engulfing Bullish candle.
Again, make sure the time frame on your chart is set to 5 minutes because this strategy involves making trades with expiry times of 30 minutes to 1 hour. We waited until the large red candle stick closed outside the lower bollinger band. After the engulfing candle closed we entered a CALL trade to expire in 30 minutes, at around 10 pips below the closing of previous engulfing candle.
As you can see, we are in the money after 30 minutes or even 1 hour. Both your 10 minute and Bollinger Band strategy are very easy. Thank you for the walkthrough.