Bollinger Bands Strategy
The use of Bollinger bands is considered one of the most optimal strategies for trading binary options. The indicator allows you to predict the direction of price movement, indicate the correct signals for the purchase of CALL and PUT options. In addition, if you trade Range or Touch options, it will also help to achieve the maximum. The strategy can be applied as part of technical analysis. The main thing in the work is to use Bollinger bands in such a way as to make a profit from transactions.
Features of the strategy
The strategy is named after the creator of the popular indicator John Bollinger, who developed a chart that consists of three lines: average, upper and lower. The upper and lower lines show the deviation of the price over a certain period of time. Thus, a trade corridor is formed.
The distance from the lower and upper bands to the middle is not constant, it will fluctuate depending on how much the price has deviated: the bands become wider, if volatility increases, if it decreases, the bands become narrower and the corridor, thus, narrows. If the corridor began to expand, it means that the market is moving, such a period is very fruitful for trade.
An experienced trader can assess market trends by line fluctuations and correctly predict the direction of price movement. The most important thing is to determine the optimal length of the line in order to choose the time to buy or sell the option.
Learn more about the Bollinger Bands indicator.
Application of the strategy
In order for your trading to bring you profit, remember how to read the indicator signals correctly:
- If the price moves near the upper limit, buy a PCI option,
- If it moves at the lower border, buy a CALL option.
In addition, remember that the strategy will be more effective if you combine it with other oscillators, for example, Stochastic.
Bollinger Bands Strategy at FiNMAX
In order for your trading on the Bollinger Bands indicator to bring you a decent income and comfortable work, choose the platform of the popular broker FiNMAX. Among its advantages: a functional terminal equipped with the necessary tools, indicators (including Bollinger Bands), 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.
FiNMAX broker bonuses
The official website of FiNMAX attracts professional traders with lucrative offers and 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 FiNMAX website are held for all interested market players who have a demo account with a broker. The tournament supports talented traders, giving them the 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
Findings
The Bollinger Bands strategy is a universal indicator, the use of which increases the chances of success several times, it is a good strategy for those who know how to analyze the market or study its capabilities. In order for it to bring you maximum benefit, study the indicator itself and its behavior.
Tagged with: Binary Options Strategy
