Strategy for binary options, Forex and CFD - Bollinger Bands with fast RSI

Strategy for binary options, Forex and CFD - Bollinger Bands with fast RSI - a strategy based on momentum and trend reversal, used to search for entry points into a trade using Bollinger Bands.

Minimum Time Frame and expiration time

• Time Frame: M5
• Expiration time: 15 minutes (3 candles)

Recommended Time Frame and Expiration Time

• Time Frame: M5
• Expiration time: 20 minutes (4 candles)

Strategy indicators Bollinger Bands with fast RSI

• Color Levels
• Time left

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 strategy with fast RSI: signal to increase

• The price has moved beyond the lower Bollinger Bands
• The RSI line dropped below the 15-20 level and then rose above the 20 level

Bollinger Bands strategy with fast RSI: downside signal

• The price has gone beyond the upper Bollinger bands
• The RSI line rose below the 85-90 level and then dropped below the 85 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