Strategy for binary options, Forex and CFD - Bollinger Bands Overbought and Oversold

Strategy for binary options, Forex and CFD - Bollinger Bands Overbought and Oversold - a strategy that allows you to determine the best entry points using support and resistance levels formed by Bollinger Bands.

Minimum Time Frame and expiration time

• Time Frame: M15
• Expiration time: 30 minutes (2 candles)

Recommended Time Frame and Expiration Time

• Time Frame: M15
• Expiration time: 45 minutes (3 candles)

Indicators of the Bollinger Bands Overbought and Oversold strategy

• Bollinger Bands
• Moving Average
• Stochastic Oscillator

Risk management

Trade is carried out with a fixed amount not exceeding 5% of the trade balance. You should not trade during the release of important economic news.

Bollinger Bands Overbought and Oversold strategy: signal to increase

• The price closed below the lower Bollinger band and then began to cross it upward
• Stochastic was in the oversold zone and began to cross the 20 level upward
• The price is above the green line

Bollinger Bands Overbought and Oversold strategy: downside signal

• The price closed above the upper Bollinger band and then began to cross it down
• Stochastic was in the overbought zone and began to cross the 80 level down
• Price below green line

Trading on Forex and CFD

• Before starting trading, it is recommended to test the strategy on a demo account (open at least 3-5 trades)
• The trade is opened after receiving a signal from the trading strategy
• The ratio of Take Profit to Stop Loss should be 3:1 (for one unit of possible loss there should be 3 units of potential profit)
• The time frame of trading is not important - minute charts are suitable for scalping, hourly or daily charts are suitable for long-term trading
• Take Profit to Stop Loss levels are set depending on the selected time frame
• The strategy will show false signals on minute charts during the release of important economic news - trade on higher time frames or choose a different time for trading