Many traders like this BO trading strategy because of the simplicity and accuracy of the signalsand because some resources say profitability of the BO strategy red green candle is 90% to 95%. However, I want to disappoint everyone who thinks this is El Dorado. When I was testing this strategy, five tosix deals out of ten were ITM. This result suggests that there is a way to improve this strategy, and hence, the strategy red green candle is not the most effective.
Frankly, I tested the strategy for small expiry periods from 1 to 30 minutes, if you extend the expiration to an houror more, it may be even more profitable. If someone tests this BO strategy for a longer period of expiration, please leave your comments.
- Trading platform: Metatrader4
- Trading Hours: London session
- Assets: Any currency pairs, indices, metals and shares
- Timeframe: M5, M15, M30 (depending on the expiry time)
- Expiry Time: 5, 15 and 30 minutes (depending on the timeframe)
- Important: If you analyze the timeframe M30, the term of the option must comply with that timeframe, i.e., 30 minutes.
Buy a CALL option when all these conditions are observed:
- The indicator 2EMA is green;
- The circles of the indicator became green in the vertical line;
- In thehistogram screen, the green bar appeared.
Buy a PUT option when all these conditions are observed:
- The indicator 2EMA is red;
- The circles of the indicator became red in the vertical line;
- In the histogram screen, the red bar appeared.
The yellow candle appears when the price is going to change its direction. It gives a warning signal to change the direction of the option. A dominate bullish or bearish trendis confirmed by the green or red line of the indicator. If the indicator is green, buy only CALL options and forget about PUT options. When the indicator is red, buy only PUT options.
Download the free BO trading strategy red green candle. Set it to your Metatrader and use it following the above rules. Good luck!