Bollinger Band Strategy
Bollinger Bands is one of the most common and effective binary options strategies that works well with any type of asset. Bollinger Bands, or Bollinger Bands (BB), is a technical analysis indicator that determines the range and speed of price dynamics and is used to measure the volatility of the market, that is, its sensitivity.
Bollinger Bands are used to determine overbought-oversold conditions, assess the quality and dynamics of prices (high or low compared to the moving average), predict the possibility of price dynamics to the moving average. The oscillator is included in most trading terminals, its popularity is due to its simple use, versatility, reliability and quality of signals.
By choosing Bollinger Bands for trading, traders determine the channel and direction of price dynamics. It is not difficult to work with the indicator and its data, which makes it possible to constantly make good money, which is why it is so popular in forex trading and binary options. The Bollinger indicator (https://eto-razvod.ru/binary-options-indicators/bollinger-bands/) is used to understand in which direction the market is moving. Let’s look at the graph below in the image as an example:
Note. The arrows indicate the moments of entry. There are more positive trades than negative ones. Bollinger Bands are three lines that reflect the dynamics of the price of an asset:
- The line in the middle is a moving average.
- The lines at the top and bottom are standard deviations.
Bollinger Strategy Settings
- Types of assets: currency pairs;
- Expirations: trades up to 15 minutes;
- Timeframe: M5;
- Strategy indicators: Bollinger Bands.
How to put the indicator on the chart
Go to the live chart, click on the “indicators” picture, then, select Bollinger Bands from the list, you can immediately add the RSI oscillator to the chart. After you have selected the necessary indicators, collapse the list of oscillators and you can get to work.
Buying a CALL option
In the figure, you can see the moment of buying a CALL option (up). When the lower line of the indicator crosses the chart, the price movement, and the direction of the trend, changes:
Buying a PCI option
In the figure, you can see the moment of buying a PUT option (down). When the upper line crosses the chart, the price movement, and the direction of the trend, changes:
Pay attention to the first image. The price dynamics and its chart are inside the channel formed by the Bollinger. The lines of price deviation from the average (lower and upper lines) form support and resistance. When the price bounces off the moving average (the line in the middle of the red color), you can open trades to buy the option:
Trades are opened only in the direction of the trend. The image shows that only 2 trades are open for an increase. Using the Bollinger indicator in trading will reduce the number of transactions, but make them of high quality. The strategy is multicurrency, there are many clear signals.
The result of the strategy
- The strategy is yielding good results. As shown in our example, the strategy gave us more than 17 trades with a positive outcome (this is 80%), only 4 trades with false signals.
- To improve the quality of the strategy, use the RSI indicator. In this case, we do not open trades if the RSI does not confirm the Bollinger Bands signal.
Reliability
This binary options strategy always works, showing high-quality signals for transactions.
Universality
You can make money on this binary options strategy on any assets. To do this, work with a live chart, use an expiration of up to 15 minutes (preferably even up to 10 minutes), choose a reliable broker.
Findings
Bollinger Bands is one of the simplest and most reliable strategies in binary options trading. Its effectiveness is high, more than 80%. The signals are accurate, there are a lot of them, which gives an excellent opportunity to make money. To use the strategy in practice, work with a real chart and a reliable trading terminal. Be careful when choosing a broker, for starters, we recommend that you study the rating of binary options brokers based on traders ‘ reviews.
Bollinger Bands Strategy and Finmax Broker
For productive trading, we recommend choosing a reliable broker Finmax, which offers ample opportunities for participation in trading, a platform, a choice of expiration from 30 seconds to six months. It is convenient and comfortable to work here. You can see what the terminal workspace 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.
Explore the broker’s capabilities by going to the finmaxbo.com website. To work, you can add the necessary indicators from the proposed list, Bollinger Bands and RSI are here:
With indicators, the chart looks like this. The RSI is located below, below the main price chart:
To buy a CALL option in the Finmax trading terminal, you need to do the following:
1. Go to the broker’s website finmaxbo.com and prepare an option, indicating:
- Type of asset.
- Expiration.
- The size of the bet.
- Forecast of the quote movement: UP.
- Click the “buy” button and follow the results.
To buy a PCI option in the Finmax trading terminal, you need to do the following:
1. Go to the broker’s website finmaxbo.com and prepare an option, indicating:
- Type of asset.
- Expiration.
- The size of the bet.
- Forecast of quote movement: DOWN.
- Click the “buy” button and follow the results.
Start trading with FiNMAX
Read reviews about FiNMAX
FiNMAX broker bonuses up to 100%
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Tournament on a demo account from FiNMAX
Free tournaments of the official FiNMAX website are held for those traders who have a demo account on the broker’s platform. The tournament is organized in order to support talented market players, giving them the opportunity to receive prize money for further trading without replenishing the deposit. So, the broker makes trading possible without personal investment. The main condition for participation in the tournament is the availability of a demo account. Both options beginners and professionals can participate in the event.
Participate in the FiNMAX tournament
Tagged with: Binary Options Strategy
