Bollinger brands signals
One of the best High/Low options trading strategies based on the Bollinger binary option indicator and rebound from its bands.
This strategy provides fairly strong High or Low binary option buying signals.
It is a binary option strategy which allows you to trade not only simple high/low options, but also such the Range or One Touch.
What is a Bollinger brands indicator
Binary option Bollinger Bands strategy can also be considered as a kind of indicator. It not only gives the trading signals, but also indicates how much time the market is in a particular position. Also, the strategy can be applied so that the trader will know that market conditions could change soon.
Generally, binary options Bollinger bands indicator is a strong enough support tool of each trader. If it uses a third band, located in the middle, it can also be used as a signal line. When the price break this band downwards, a downward motion proceeds to the bottom of the range. In cases when the price crosses below, an upward motion proceeds to the upper boundary.
The name of the strategy comes from the author of the eponymous binary option indicator – John Bollinbger. Briefly, it consists of two (sometimes three) bands, which show a range, within which the price is moving. Approaching the top of the range, the price is repelled by it and goes to the bottom. Exactly the opposite thing happens when it approaches the lower boundary.
Important settings for this strategy
It should be noted that the markets are in a state of lateral movement for quite long periods of time. Only about five percent of the time they are in a trend, i.e. directed motion. That is why the use of this indicator will allow you often enough to make a profit in binary options trading.
It is also important to establish periods of curves, which are part of binary option Bollinger bands. . These settings can significantly affect the operation of the indicator, so traders should closely relate to them.
After the trader has set all necessary attributes, he can start binary options trading.
However, it is important to learn to identify not only the signals but also to see how long the price will move from one curve to another. Indeed, in binary options trading the key factor is not the level the price will reach, but how much time it will be in a unidirectional motion.
How to trade with Bollinger indicator
Trading with binary options Bollinger indicator is quite simple. When the price goes to the top of the curve, you can buy a Low option. When the price reaches the lower curve, in turn, trader should buy High option.
The screenshot shows what kind of recommendations we can make for this binary option strategy. As the figure shows, during this time you could buy High and Low binary options.
The chart also shows that the price may go out of range from time to time. However, it then quickly backs inside the range. Therefore, if the term of expiration allows, the trader still makes a profit, even at the breakout range.
You can apply this strategy not only for High or Low options, but for Range and One Touch as well. You can also vary the expiration times and go for long periods as the one on the chart.