Strategy accurate signals to binary option
Even without use of additional filters, indicator works good. Have a look on applying RSI that even more increase accuracy of the indicator.
If you trade turbo options or binaries with expiration time less than 30minutes, 70 and 30 levels not always allow to execute accurate enterings. Period should be decreased for indicator to reach its extreme values more frequent. For timeframe less than hour one may usel RSI equals 5 and 90 to 10 or even 95 to 5 levels.
For additional approval you need to pay attention on higher period in order to see the global trend. Trading binary options opposing the trend is the bad idea, thus signal direction on current timeframe and one above must match together. There is scalping technique for supershort deals.
This trading method is being frequently applied by american traders. The feature of the strategy is to get large amount of signals during a small period of time.
The main goal is to absolutely minimize response time of an indicator. As usual, this strategy is used on chart M1 or M5.
Expiration time of binary option usually does not exceed 5 minutes. Divergence is a dissimilarity between chart and indicator values, for example when the chart draws higher and indicator shows lower maximum. The example of divergence — two maximums on chart are on the same level while on the indicator chart the second maximum is much higher:.
The thing to remember — you need to trust exactly what indicator shows, if it grows — we buy option CALL, if it decreases — PUT. As a result we get very precise signals on entering the position. The rules of trading on RSI are fairly standard. Purchase PUT option by the time indicator line exits the overbought zone, or CALL option, when indicator line exits the oversold zone. But one should enter only in case the price is situated near the bottom line of Bollinger Bands, which should act as a filter.
Ideally, the price should exactly overcross the line by the moment of receiving RSI signal. The closing price above:.
All the same is true for PUT-signal, in this case the price therewith should simultaneously cross the top line of a channel — Opening price higher, closing price lower inside the channel:. The expiration time may vary depending on used timeframe. Ideally, the expiration time should be equal to quantity of bars needed to achieve the floating average average line of the channel from the edges of the channel.
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One may calculate the average quantity of bars needed to pass the distance from one edge to another and divide it by 2. The most famous and widespread indicators are able to become the basis of profitable trading strategy if one uses it properly. We discussed several simple ways of increasing the percentage of succesul deals through the traditional RSI strategy.
At the same time, the majority of more up-to-date developments are based on the same RSI or floating averages. The primary benefit of RSI is its versatility, this indicator might be used on currency pairs, trade stocks or goods with equal success and without loss of quality. The RSI IQ Option Official Blog. UK GDP Report - National Statistics. Canada MoM and QoQ GDP Reports.
September Interest Rate Decision. FOMC Meeting 21 September Analysis. John Murphy's Book on Technical Analysis. Advices From a Guru. RSI Settings for Trading Options. Diferentes Ajustes del RSI para el trading de Opciones. Indicators That's Interesting 6 Ways to Get Maximum Gain from RSI Indicator.
This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future. The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose. There are 20 comments 20 comments. Lesh 11 months ago. Raphael 11 months ago.
It was very smarting article. I wish you will publish more in the same style on other indicators as well. Thabiso Chiloane 11 months ago. Kayden 10 months ago.
1-minute (second) Binary Options Strategy: 14 of 18 wins
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