Strategy for binary options, Forex and CFD - Bollinger Bands, RSI and Stochastic Trading System

Strategy for binary options, Forex and CFD - Bollinger Bands, RSI and Stochastic Trading System - a strategy based on three indicators, used to search for entry points in the direction of trend price movement on a time frame from 1 hour .

Minimum Time Frame and expiration time

• Time Frame: H1
• Expiration time: 2 hours (2 candles)

Recommended Time Frame and Expiration Time

• Time Frame: H4
• Expiration time: 8 hours (2 candles)

Strategy indicators Bollinger Bands, RSI and Stochastic Trading System

• Bollinger Bands
• Stochastic Oscillator
• Relative Strength Index

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.

Strategy Bollinger Bands, RSI and Stochastic Trading System: signal to increase

• The price has touched or crossed the lower red Bollinger Band
• RSI and Stochastic lines below level 20
• Enter a trade if the next candle crosses or is above the red Bollinger band, and the RSI and Stochastic are above level 20

Strategy Bollinger Bands, RSI and Stochastic Trading System: downside signal

• The price has touched or crossed the upper red Bollinger Band
• RSI and Stochastic lines above level 80
• Enter a trade if the next candle crosses or is below the red Bollinger Band, and the RSI and Stochastic are below the 80 level

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