Bollinger Bands In Binary Trading

At least 90% of traders used Bollinger bands at the beginning of their trading career. It is widely popular because of its simplistic display helps traders to identify both trend and range market at a glance.

Below we will explain three strategies which you can apply on whatsoever fourth dimension frame along with oscillators.

Why oscillators required? We'll explain before long.

Definition

Bollinger bands looks like a channel with a centre band; works as an fantabulous volatility indicator. The middle band is more than like a pivotal betoken. Anything above it bullish & anything below bearish.

Usage of oscillators:

In that location are plenty of oscillators available. You can cull anything you lot like, in this case, we have used MACD (Moving average convergence deviation). MACD adds actress confirmation on trade betoken forth with Bollinger band.

MACD generates two types of signals.

MACD point
MACD trend

In this example, we but need both MACD signals agreeing with the Bollinger ring signal.

i. Bullish Breakout

When the market price equally a candlestick or a bar form closes in a higher place the upper Bollinger band on the chart, then it is considered as a bullish breakout. In the case of binary options trading, yous tin can place phone call club or ascent gild when such signal occurs. Trade duration depends on the time frame which you volition use.

Equally we take mentioned well-nigh MACD has to be following the aforementioned signal. With the example below, see with the trend indicator dashboard for USDCAD, Bollinger band showing bullish breakout indicate along MACD both bullish signals.

indicator buy signal

Indicator purchase bespeak

By looking at the15 minutes chart we can see the Canadian dollar is breaking a range & moving upward. Then information technology is possible to identify a phone call option for 15 minutes.

usd cadfull chart display

USDCAD full chart display

With Binary online platform we can hands place a buy up/downwards or rise/fall trade for 15 minutes.

placing binary options trade

Annotation:

With binary platform if you select tick "allow equals" that will enable you lot to make money even if during binary option expiration price stays equals to the entry strike price.

Merely notation, activating this selection will subtract your amount of profit return per centum a little bit.

Every bit long as candlesticks are closing above the Bollinger band upper line, the market indicates a bullish trend. When the bar closes below the upper Bollinger band & MACD showing bearish signal, that indicates weakness in a bullish trend.

2. Surly Breakout

When the market price as a candlestick or a bar form closes below the lower Bollinger band, then this indicates a bearish breakout. In case of binary options trading, you lot can place put society or fall order when such signal occurs. Trade duration is the aforementioned as before based on the selected fourth dimension frame of the nautical chart.

bollinger band bearish signal

Bollinger Band bearish signal along with MACD

With the movie above we can see, EURUSD & EURCAD showing bullish signals with both MACD & Bollinger Band. Therefore placing put option or binary selection "fall" merchandise for 24 hours could be a skilful selection. Every bit the merchandise betoken is on the daily chart. So we tin cull the trade duration of 24 hours or 48 hours depending on the volatility.

Equally long as candlesticks are closing below the Bollinger band lower line, it stays bearish. When the bar closes above the lower Bollinger ring, the bearish trend becomes weak.

3. Range Market place

When the marketplace toll as a candlestick or a bar form stays inside the upper & lower Bollinger bands, that indicates the price is in range style, particularly you can see Bollinger band aqueduct is squeezing. In such a instance, you can trade range options, similar you volition get paid just if the market stays within the range top & lesser nether a certain fourth dimension.

Trade duration is the same as before, matched information technology with the nautical chart time frame. If y'all use 5 minutes chart for analyzing the chart, then binary options merchandise duration should be between 5-ten minutes.

Bollinger band in range market

In the film in a higher place, we have marked two arrows where nosotros notice the highest top in the range and the everyman low. Then A & B is the tiptop & lesser of the range, as long every bit the price stays inside a range. Also, find toll is not breaking the lower Bollinger band or the upper Bollinger band.

Mostly, after a range market place, a bullish or surly trend appears.

Bollinger Band with MACD:

MACD stands for moving average convergence & divergence. It is an oscillator widely used in technical analysis for tendency confirmation.

Indicator Used: Bollinger Band & MACD
Time Frame: 5 Minutes
Chart Pattern: traditional candlestick blueprint
Indicator Parameter: Metatrader Default

Bolliner band with MACD

Come across the moving picture higher up, we have plotted Bollinger band & MACD for v Minutes EURUSD nautical chart. We take marked all 3 trade best signals on the nautical chart. If you place a trade, that EURUSD will rise or fall for the next 30 minutes. And then with these 3 trades, yous could take won positively.

The above argument might sound like retrospect trading. Only in reality, it is not. Crusade if you have noticed the wave blueprint, so these iii trades can exist hands explained.

Beginning Signal:

Hither you can see that afterward a range movement, the market has expanded toward downtrend. At bespeak 1, EURUSD bankrupt the range bottom & also MACD is bearish & MACD value is below the MACD signal. So there is an option to place "Autumn / Put" trade for the next 30 minutes.

Second Signal:

At this betoken (marked equally two) EURUSD broke the last range top & with expanded Bollinger ring. Bar closes above the Bollinger band. MACD indicate & MACD value both showing positive. Therefore another "Rising / Telephone call" binary options trade opportunity it is showing.

Third Bespeak:

A good buy trade signal was visible when EURUSD broke the last acme & created a new college high. Bar closes higher up Bollinger band upper level. MACD is also agreeing with it.

NOTE:

you might find lots of Bollinger band breakout just none of them are creating any new high or new low. Rather staying inside a range. Every bit a effect, we are no longer trading. Our 3 best merchandise is done.

Using Metatrader Indicator

Metatrader is a free charting software and spot trading platform. You lot can use this software to load IntraQuotes premium Indicator. The master benefit of using this indicator is it automatically scans for Bollinger band signals amid multiple currency pairs or instruments.

At present, as we have mentioned about using MACD & bollinger band betoken all together. So on trend dashboard indicator we will apply default settings in this example & observe MACD, bollinger band breakout signals.

Bollinger band signal

Bolliner band MACD signal

See with the above motion picture, we can come across signals with EURGBP, AUDJPY, AUDCHF. So we can identify sell order with binary options with 5 minutes expiry. For ownership binary options we had USDCAD,GBPAUD.

With the trend dashboard one can get instant binary options buy sell point at a glance.

In order to use MetaTrader, you need to take a demo forex trading account. You can open find different forex brokers with demo account facility with link below.

Placing binary options trade:

Most of the binary options brokers back up spider web platform to execute a trade & also to clarify the chart. You can place a merchandise put/call or range options trade after logging to your binary options existent trading account.

Binary options trading web platform

You need to select trade elapsing, payout amount & entry toll, exit conditions.

Risk Management:

Like all types of trading, the basic rule is, do non risk too much. Adventure merely a small-scale stock-still amount or ii% of the capital, which yous tin effort to lose, thus you will be nether less mental pressure.