Strategy for binary options, Forex and CFD - Momentum Reversal with Bollinger Bands

Strategy for binary options, Forex and CFD - Momentum Reversal with Bollinger Bands - a strategy based on price exit from Bollinger Bands, helps determine the trend reversal and the best moment to open a trade.

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: 15 minutes (3 candles)

Indicators of the Momentum Reversal strategy with Bollinger Bands

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• RSI_Color_v1.01_maxsig-NoAlerts

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.

Momentum Reversal strategy with Bollinger Bands: signal to increase

• The price has moved beyond the lower Bollinger Bands
• The price has crossed upward the lower Bollinger band
• Wait until the line on the basement indicator turns blue and the histogram rises above the zero level

Momentum Reversal strategy with Bollinger Bands: downside signal

• The price has gone beyond the upper Bollinger bands
• The price has crossed down the upper Bollinger Band
• Wait until the line on the basement indicator turns red and the histogram drops below the zero 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