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

Strategy for binary options, Forex and CFD - Bollinger Bands with RSI OB-OV - a strategy that helps identify overbought and oversold zones using Bollinger Bands and RSI to open a profitable transaction.

Minimum Time Frame and expiration time

• Time Frame: M1
• Expiration time: 3 minutes (3 candles)

Recommended Time Frame and Expiration Time

• Time Frame: M1
• Expiration time: 5 minutes (5 candles)

Strategy indicators Bollinger Bands with RSI OB-OV

• Moving Average
• Bollinger Bands
• 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.

Bollinger Bands strategy with RSI OB-OV: signal to increase

• The price is above the yellow line
• The price closed below the lower red band, and the RSI line was below the 20 level
• Enter a trade when the price rebounds from the lower band and the RSI line comes out of oversold

Strategy Bollinger Bands with RSI OB-OV: downside signal

• The price is below the yellow line
• The price closed above the upper red band, and the RSI line above the 80 level
• Enter a trade when the price rebounds from the upper band and the RSI line comes out of overbought

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