Topic binary options strategy based on bollinger bands and trend indicator
Our set-up for trading strategies are very simple. Personally we prefer to use www. Plus the color-coded aspects of their tools make it very easy to read and distinguish moving average patterns, trends, price directions, and so on.
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. To be able to make estimates and predictions, a lot of traders will turn to trends and patterns in a test to try and understand the current mood of the market.
The market psychology is hard to determine but the goal is to evaluate if the price is in an upward trend or downward trend. However, it is critical to understand that you need to master your trading and not give in to emotions and market psychology. One way to do so is to understand how psychology affects market movements and how you can parry it when you make trades.
When you study financial theory and market movements you need to be aware that these may very well be an extension of human emotions. If you know how to weed out the movements of market psychology and it is easier to understand the price movements if you can plot psychology just like historical prices. Subscribe To Trading Secrets. Tunneling Binary Options Trading: Binary options trading and the psychology that surrounds the market. In fact, for most traders the right approach is unique to them simply because everyone has different risk factors.
We do our best to set up a credible fifteen minutes It is considered to be a trading pattern designed in Japan. The system has been created to help market pl Until recently, one minute was seen as the fastest possible trade, however this is now cha But there are also some distinctions in these two activities.