1. CCI (commodity channel index) with settings 200 and -200
As you may find in any description of this indicator, default settings for CCI are 100 and -100 levels. We increase the default parameters by 2 times and this allows us to avoid the false signals which would not work out between 200 and -200 levels. So, we have less quantity of binary option signals, but we gain a benefit of their quality and get much more precise trading signals.
2. BB (bollinger bands) with default settings
Bollinger bands is very popular channel indicator. Most of the binary options trading strategies based on this indicator use the channel breakout. But as we can see from the experience, the channel breakout does not guarantee the price reversal. This fact makes us considering this indicator as secondary one.
3. Stoch (stochastic oscillator) with settings 5,3,3.
In contradiction to the CCI, which we made slower by changing the settings, we will use the Stochastic oscillator with fast parameters. This will help us to notice the beginning of price reversal from overbought zone (80) and oversold zone (20).
Binary options trading strategy “Spring” conditions:
CALL option rules:
CCI is coming back up from -200 level;
The price is below than lower Bollinger Bands line;
Stochastic lines cross each other in oversold zone (below 20);
We open CALL for two candles ahead.
PUT option rules:
CCI is coming back down from 200 level;
The price is above the higher Bollinger Bands line;
Stochastic lines cross each other in overbought zone (above 80);
We open PUT for two candles ahead.
Any time frame, starting from 5 minutes, could be chosen for binary options trading strategy for beginners “Spring”. The longer timeframe you choose the more precise binary option trading signals you get. And at the same time, the shorter timeframe you set, the more quantity of trading signals you get. You can make an additional signals filtration with Pin Bars help.
To be noticed, that the reversal trading strategies to not work completely before and after release of major economic news. The market will stay still before important news, waiting for the result of release and determining the direction of further movement. And right after an important economic report is published, the market will go up or down sharply, depending on the result of that release. Both situations are not good for trading, as we will see a side movement in the first case, while in the second scenario we will probably see one-way direction, so the reversal could not occur, despite the technical indicators. You may know more how to trade on the news with profitable result, all you need is to follow our further publications.