Bollinger Bands Strategy
One of the best binary options trading strategies is the Bollinger Bands, a reliable trend indicator that allows you to accurately determine the buy signals of CALL and PUT options, as well as Range and touch options.
The trading system accurately shows the degree of the average return of the financial market to its original or main position. The strategy can be used to inform traders about changes in the situation in the financial market, predict overbought and oversold signals.
Features of the indicator
The Bollinger indicator is easy to use, popular with traders, allowing you to get a decent income. The indicator lines surround the moving average, and the width of the formed bands is proportional to the deviation from the moving average for a specific period of time. The lines form a trading corridor, within which 95% of sales take place in 20 days:
The distance that occurs between the bands directly depends on the standard deviation of the price. When price volatility increases, the bands begin to expand, and when volatility decreases, they narrow. The latter is typical for the sideways movement of the financial market. If the band has started to expand, it means that the market is moving either up or down. By assessing the position of the middle line in relation to the price, the trader can accurately determine the direction of the market and make money on it.
Features of trading by strategy
Such a technical indicator is best used when market deviations are present. The magnitude of the deviation and the length of the moving average determine the reasons on which the investor assesses the state of the market and its possible behavior.
Determining the optimal length of the line makes it possible to trade binary options very successfully. The key to this strategy is the timing of the option selection.
Investors monitor the position of prices, timely determining the possibility of lowering prices or maintaining their position, as well as observing that the price reaches the boundary.
Strategy signals
In order for trading to bring you the maximum result, it is necessary to enter the market correctly.
Buying CALL Options
- The price is concentrated near the lower Bollinger band.
- The price chart crosses the middle line from bottom to top, the candle forms above the midline, the outer bands begin to diverge.
Buying PCI Options
- the price is near the upper Bollinger band.
- The price chart crosses the midline from top to bottom, the candle forms below the midline, the outer bands begin to diverge.
Bollinger Bands Strategy at FiNMAX
To make trading on Bollinger Bands the most effective and functional, work in the FiNMAX broker platform. Among its advantages: one of the most convenient terminals equipped with the necessary tools, a convenient personal account, many ways to withdraw funds, a detailed history of transactions, up-to-date analytics and much more. You can see what the workspace of the trading platform looks like in the image below.
A detailed review of the FiNMAX broker is here.
Go to the official website of the FiNMAX broker here.
In order to purchase a
CALL
option in the FiNMAX trading terminal, follow these steps by going to the finmaxbo.com website and preparing the option, indicating:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: UP
- Click the “buy” button and follow the results.
In order to purchase a
PCI
option in the FiNMAX trading terminal, follow these steps by going to the finmaxbo.com website and preparing the option, indicating:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: DOWN
- Click the “buy” button and follow the results.
Read traders’ reviews of FiNMAX
FiNMAX broker bonuses
The official website of FiNMAX also attracts traders with profitable promotions, which can be found here. By trading bonuses, you save personal capital without exposing it to the risks of loss and will be able to work much more efficiently.
Tournament on demo accounts from FiNMAX
Free tournaments of the official FiNMAX website are held for any market players who have a demo account with a broker. The tournament supports talented traders, providing an opportunity to get real money for further trading without replenishing the deposit. This money can be withdrawn in any convenient way or traded on the site.
Participate in the FiNMAX tournament
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