5 Minute Expiry Bollinger Bands Binary Option Strategy

At least 90% of traders used Bollinger bands at the beginning of their trading career. It is widely pop considering of its simplistic display helps traders to identify both trend and range market place at a glance.

Beneath we will explain 3 strategies which you lot can utilise on any fourth dimension frame along with oscillators.

Why oscillators required? We’ll explain soon.

Definition

Bollinger bands looks like a aqueduct with a middle band; works equally an excellent volatility indicator. The center ring is more similar a pivotal point. Anything above it bullish & anything below bearish.

Usage of oscillators:

At that place are plenty of oscillators available. Y’all can cull anything you similar, in this case, nosotros take used MACD (Moving average convergence deviation). MACD adds extra confirmation on merchandise signal along with Bollinger band.

MACD generates two types of signals.

  • MACD betoken
  • MACD trend

In this case, we only need both MACD signals agreeing with the Bollinger band signal.

1. Bullish Breakout

When the market price as a candlestick or a bar form closes above the upper Bollinger ring on the chart, so it is considered as a bullish breakout. In the instance of binary options trading, y’all can place telephone call order or rise order when such indicate occurs. Trade duration depends on the time frame which yous will utilise.

As nosotros have mentioned near MACD has to be following the same signal. With the example beneath, run across with the trend indicator dashboard for USDCAD, Bollinger band showing bullish breakout point along MACD both bullish signals.

indicator buy signal

Indicator buy indicate

By looking at the15 minutes chart we can encounter the Canadian dollar is breaking a range & moving upward. Then it is possible to place a call option for fifteen minutes.

usd cadfull chart display

USDCAD full chart display

With Binary online platform we tin easily place a buy up/down or rise/fall trade for 15 minutes.

placing binary options trade

placing binary options merchandise

As long as candlesticks are endmost in a higher place the Bollinger band upper line, the market indicates a bullish trend. When the bar closes below the upper Bollinger band & MACD showing bearish signal, that indicates weakness in a bullish tendency.

2. Bearish Breakout

When the market toll every bit a candlestick or a bar class closes below the lower Bollinger ring, and so this indicates a bearish breakout. In case of binary options trading, you can place put guild or fall order when such signal occurs. Trade duration is the same every bit before based on the selected time frame of the nautical chart.

bollinger band bearish signal

Bollinger Band bearish indicate forth with MACD

With the movie in a higher place we can see, EURUSD & EURCAD showing bullish signals with both MACD & Bollinger Ring. Therefore placing put option or binary option “fall” trade for 24 hours could be a skillful selection. As the trade signal is on the daily chart. And so we can cull the trade duration of 24 hours or 48 hours depending on the volatility.

Every bit long equally candlesticks are closing beneath the Bollinger band lower line, it stays surly. When the bar closes above the lower Bollinger band, the bearish trend becomes weak.

3. Range Market

When the market place price as a candlestick or a bar grade stays inside the upper & lower Bollinger bands, that indicates the price is in range mode, particularly yous tin see Bollinger band channel is squeezing. In such a case, yous can trade range options, similar you will get paid only if the market stays inside the range tiptop & lesser under a certain time.

Trade duration is the same as before, matched it with the chart time frame. If you employ 5 minutes chart for analyzing the nautical chart, then binary options merchandise duration should be betwixt 5-10 minutes.

bollinger band range market

Bollinger band in range market

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In the picture above, nosotros have marked two arrows where we find the highest top in the range and the everyman low. Then A & B is the top & bottom of the range, equally long as the price stays inside a range. Also, observe price is non breaking the lower Bollinger band or the upper Bollinger band.

By and large, after a range market place, a bullish or surly trend appears.

Bollinger Ring with MACD:

MACD stands for moving average convergence & departure. It is an oscillator widely used in technical analysis for trend confirmation.

  • Indicator Used: Bollinger Band & MACD
  • Time Frame: 5 Minutes
  • Chart Pattern: traditional candlestick pattern
  • Indicator Parameter: Metatrader Default

Binary Options Bollinger Bands

Bolliner ring with MACD

See the picture above, we accept plotted Bollinger band & MACD for v Minutes EURUSD chart. Nosotros take marked all three trade best signals on the chart. If you place a trade, that EURUSD will rise or fall for the next thirty minutes. Then with these iii trades, you could have won positively.

The above statement might sound like hindsight trading. But in reality, it is non. Crusade if you have noticed the wave design, then these three trades can be easily explained.

First Signal:

Here you can meet that later on a range movement, the market place has expanded toward downtrend. At indicate one, EURUSD bankrupt the range bottom & also MACD is bearish & MACD value is below the MACD bespeak. And so there is an selection to identify “Fall / Put” trade for the next 30 minutes.

2nd Signal:

At this point (marked as two) EURUSD bankrupt the terminal range tiptop & with expanded Bollinger band. Bar closes above the Bollinger ring. MACD betoken & MACD value both showing positive. Therefore another “Rise / Phone call” binary options trade opportunity it is showing.

Third Indicate:

A good purchase trade betoken was visible when EURUSD bankrupt the concluding top & created a new higher high. Bar closes in a higher place Bollinger band upper level. MACD is also agreeing with it.

Using Metatrader Indicator

Metatrader is a gratis charting software and spot trading platform. You tin can use this software to load IntraQuotes premium Indicator. The main benefit of using this indicator is information technology automatically scans for Bollinger ring signals among multiple currency pairs or instruments.

Now, equally we take mentioned about using MACD & bollinger band bespeak all together. So on trend dashboard indicator nosotros volition use default settings in this case & observe MACD, bollinger band breakout signals.

Bollinger band signal

Bolliner band MACD signal

See with the above picture, we can see signals with EURGBP, AUDJPY, AUDCHF. So we can place sell club with binary options with five minutes expiry. For buying binary options nosotros had USDCAD,GBPAUD.

With the trend dashboard one can get instant binary options buy sell signal at a glance.

In lodge to use MetaTrader, you need to take a demo forex trading account. You can open find different forex brokers with demo account facility with link below.

Placing binary options trade:

Nigh of the binary options brokers support spider web platform to execute a trade & also to analyze the chart. You can place a trade put/phone call or range options trade after logging to your binary options real trading account.

binary options web platform

Binary options trading spider web platform

You demand to select merchandise duration, payout amount & entry price, exit conditions.

Risk Management:

Like all types of trading, the basic rule is, do not risk too much. Risk only a minor fixed corporeality or 2% of the capital, which y’all tin can endeavor to lose, thus you will be under less mental pressure.

Source: https://www.intraquotes.com/binary-options/bollinger-bands

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