Bollinger Bands Pluss is a famous trend trading system, which is composed of the most popular indicators - Bollinger Bands (BBs), Parabolic SAR and Relative Strength Index (RSI). Binary options traders favor this system thanks in large part due to its activeness in spotting signals. This article will show you in detail how to use the Bollinger Bands Pluss to profit from the binary options mar" />Bollinger Bands Pluss is a famous trend trading system, which is composed of the most popular indicators - Bollinger Bands (BBs), Parabolic SAR and Relative Strength Index (RSI). Binary options traders favor this system thanks in large part due to its activeness in spotting signals. This article will show you in detail how to use the Bollinger Bands Pluss to profit from the binary options mar" /> Bollinger Bands Pluss is a famous trend trading system, which is composed of the most popular indicators - Bollinger Bands (BBs), Parabolic SAR and Relative Strength Index (RSI). Binary options traders favor this system thanks in large part due to its activeness in spotting signals. This article will show you in detail how to use the Bollinger Bands Pluss to profit from the binary options mar" />
› Bollinger Bands Pluss Trading Strategy - How It Works

Bollinger Bands Pluss Trading Strategy - How It Works

Bollinger Bands Pluss is a famous trend trading system, which is composed of the most popular indicators - Bollinger Bands (BBs), Parabolic SAR and Relative Strength Index (RSI).
Binary options traders favor this system thanks in large part due to its activeness in spotting signals.
This article will show you in detail how to use the Bollinger Bands Pluss to profit from the binary options market.

Overview of Bollinger Bands Pluss Trading Strategy


In order to understand how to apply this technical system, we need to find out about the function of the components that the Bollinger Bands Pluss contains.
Included in the name, the “Bollinger Bands” (BBs) is an efficient lagging indicator developed by famous trader John Bollinger.
This BBs is widely used by traders to determine trending market conditions as well as trading occasions, and that’s also its responsibility in this bollinger band trading strategy.
The BBs is supported by the Parabolic SAR, invented by Welles Wilder, which works as a wrong signals eliminator to help users achieve the most reliable opportunities. Besides, the strategy developer also added the Relative Strength Index, whose main function is confirming trend’s momentum, to help filter out unworthy entries better. Thus, with three beacons well combined, the Bollinger Bands Pluss can be called a sharp trend detector, enabling traders to catch perfect trends and trading occasions.

If you like this strategy, you might also be interested in this Bollinger Bands Options Strategy

Having been tested carefully by us over the last 12 months, this technical strategy has so far affirmed a win-rate of 80%.
There are more than 100 trading signals identified every month, therefore, bollinger band trading strategy is really suitable for short-term and mid-term traders, who are able to constantly watch the trading platform.

How to trade binary options using the Bollinger Bands Pluss



According to the testing result, the Bollinger Bands Pluss works best on the 15-minute chart.
This strategy could be applied to any financial assets, including currency pairs, indices, commodities or cryptocurrencies.

A bullish signal is ascertained when:

  • Prices pierce above the middle band of the BBs.
  • The Parabolic SAR remains below prices.
  • The RSI line is above 50.


Bollinger Bands Pluss Trading Strategy - How It Works



Conversely, a bearish opportunity is determined when:

  • Prices turn below the middle band of the BBs.
  • The Parabolic SAR stays above prices.
  • The RSI line is below 50.


Bollinger Bands Pluss Trading Strategy - How It Works



Below are the system’s entering rules:

  • Only one position should be opened at a time.
  • The piercing candlestick must be fully close before a signal is confirmed valid.
  • Position’s expiry time should be set 4 times larger than the chart’s timeframe. For example, you can set the finishing time to be 60 minutes when trading on the 15-minute chart.

Pros and cons of the Bollinger Bands Pluss Trading Strategy



Pros

  • Flexible and easy-to-use.
  • Requiring no custom indicators.
  • Not redrawn.
  • Generating highly accurate trading signals.
  • Helping maximize potential profits from trends.


Cons

  • Requiring a high level of patience.
  • Necessitating traders to constantly watch the market.

Conclusion

With plenty of advantages introduced above in addition to a relatively high win-rate (80%), the Bollinger Bands Pluss has shown itself to be a really effective technique that allows binary options traders to detect and profit from short-term trends.
We believe this strategy could become the best companion in your trading career given a strict following to its indication.
Anyway, don’t forget to use balance controlling & psychology managing methods when trading with this system to minimize the risk and maximize the potential returns.


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