Bollinger tape strategy. Additional conditions of the best strategy for binary options

The correct definition of the beginning and end of the trend is the dream of any trader, the main condition and at the same time the problem of profitable trade in any financial market.

One of the best trend indicators are the Bolllarger waves: binary options opened by its signals give a high probability of positive outcome with any direction of market movement.

Method of calculation and parameters

Practice shows that according to any asset, 80-95% of all price volatility falls into the zone of the Bollinger bands, and - on any timeframe. The price channel is formed by three sliding media, the basis of the indicator is SMA (20) - a simple sliding average, showing the general direction of the medium-term trend.

From it at a distance of two standard deviations there are two more medium (channel boundaries), which can be estimated to estimate the direction of movement and the range of possible price fluctuations in the near future.

The Bollinger Indicator is included in the basic set of all popular trading platforms - for example, on

The MetaTrader shopping terminal has this kind:

Before proceeding to the description of trading strategies, we will give several recommendations how to use the Bolllarger indicator more effectively.

In the construction of the channel already contains information on the current volatility and the direction of the trend, so you need to choose correctly indicators for additional confirmation. One of the most common misconceptions of newcomers is to use 4-5 confirmations when it is enough and two.

There is nothing wrong with that, if the indicators do not "sing in unison," issuing similar information that can be the same false. Take a rule to use only one indicator from each group: one overbought / oversold oscillator, one momentum, one trend and so on.

If the price concerns the Bolllarger line, for binary options, this does not mean the immediate opening of the transaction for the market turn. The price can start the "slip" on the ribbon and this process can continue long enough. Before opening, always look at the indicators:

• Touch the upper line at neutral indicators indicates the instability of the market. If the indicators are negative, for example, the output of oscillators from the overbought zone, you can open a PUT-option for a decrease. For the CALL option, the opposite condition is the touch of the bottom line and the positive data of the indicators.
• Confirmation of the start of slip prices will be somewhat increasing (with an uptrend trend) or lowering (with descendingable) touches of the price of Bolllarger lines. Oscillators overbought / oversold at the same time "stuck" on their extremums.
• The closure of the price bar outside the Bolllarker does not mean a breakthrough of volatility or the beginning of a trend reversal. Such "false" breaks are often found during compression periods.

The default parameters are suitable for most trading tools, but they are, of course, are not a dogma, and can change to more accurately comply with the market situation.

But changing the parameters, you must not forget that the moving average in the indicator is intended to determine the medium-term trend and should always be longer than the average that are used for the intersection signals.

If the average is reduced, it is also necessary to reduce the overall width of the tape, (for example, for a 10-period medium, the width of the tape is 1.9), respectively, with an increase in the ribbon period expands with standard 2.0 to 2.1 and higher. Specific values \u200b\u200bare determined only by testing.

Another John Bullerger himself allocated three options for using the indicator, which he considered the main and most reliable:

1. Test of volatility or compression.

On the price chart, the compression looks like a reduction in the distance between the upper or lower boundary of the tape, which indicates the decline in the volatility and the transition of the market into the consolidation state (or "compression"), which will necessarily follow a sharp price movement that breaks through one of the lines.

Example of compression and opening option in the diagram below:

Pay attention to the false breakthrough before starting the new trend. Such situations are often found when leaving the lateral movement, therefore it is not recommended to open lengthy options with the condition that the price does not go beyond the range.

In addition to transactions on breaking volatility, the rebound from the boundaries of the compression area can also be used as a strategy for binary options. Bolllarger bands in this case work as support / resistance levels and experienced traders can open a deal if the channel has a sufficient width.

It is important here to understand that compression is typical for the lateral motion of the market and reducing intraday volatility, which is different for each tool and trading session. Options Options makes sense if 4-5 bars are placed between the borders.

A sign of the beginning of a strong trend will be a sharp increase in volatility, in which the bottom line sharply turns down when the upward trend or the upper - up with the descending order, which visually looks like "expansion" of the Bollinger channel.

Options open when the price is secured behind the lines with the expiration time of at least 5-7 bars of the working timeframe. Always wait for a confirmation of a breakthrough from additional indicators!

3. Reversal.

Options open at the beginning of a trend turn after a protracted trend accompanied by several touch top or bottom line indicators. Each next touch reduces trend force, which should be confirmed by the weakening of the indicators data.

With long-term trends and a wide channel Bulleber Bands, the strategy to open options from the feed of the channel boundaries, as in the case of compression, it looks quite attractive, but it is not recommended to use it. The side channel in this case looks more reliable than bovine or bearish.

That is, the line may appear behind each touch of the line, which increases the risk of an additional "false" breakdown from the moving average. In addition, it will be difficult to determine the expiration time of the option - the price with the same probability can or quickly fluctuate between the middle and boundary of the tape, or move with a small step in 8-10 bars, as seen in the scheme above

A good signal confirming the reversal is considered to form inside the "Double bottom" and "double vertex" indicator.

Like that:

Summarize

The Bulleryer Indicator can be successfully used to trade binary options on the currency, stock and commodity market, especially in the period of non-abusive, but at the same time strong volatility.

In addition to undoubted advantages, there is a significant disadvantage - delay due to the use of moving averages. It is impossible to completely get rid of this problem, but the use of additional technical analysis tools will allow it to minimize it.

Strategy for the Bollinger Strip Indicator for Binary Options

Trading rules tactics "Super Bollinger" Really simple, however, before we start their description, we want to mention a particular feature of this strateg. The fact is that it is necessary to trade on it only on a trading platform with built-in technical indicators. Indicators working in living services quotes are not suitable here, because between the timeframe (time interval) for quotations on the broker platform, and the timeframe of analytical service will be significant discrepancies (1 candle of quotes in the broker equates to 5 -This seconds, and 1 candle on service with alive quotes - to 1 -y minute). The strategy was checked at the Binomo broker terminal.

Best Strategy for Binary Options - Indicator Parameters

The specified method for binary options based on very accurate indicators - Moving average. and Bollinger waves. These indicators are depicted on the chart above. Therefore, it is necessary to apply them to quotes for this mechanism:

• First add Bollinger Bands, and the default settings are left.
• Then add moving average, and in its settings set the period 1, and the method is weighted:

Super Bollinger - Rules for using a simple strategy for binary options

When you have on the chart with quotes already installed two above indicator, you need to wait for:

But, the main thing in using this simple strategy for binary options, it allows you to trade, closing more 70% of their income transactions. Testing this strategy, we managed to achieve about 100% income to the deposit in just a week. And this is already an excellent trading result, with which you can stably increase the size of your deposit.

As you can see, the specified strategy is quite simple, so it will be accessible for easy use even beginners.

Additional conditions of the best strategy for binary options

Expiration deadlines must be set approximately 1 minute. At the same time, it is possible to use this strategy regardless of the time of day. According to the Risk Management Rules - for each transaction in this tactic you need to risk no more 2% From the volume of deposit. That is, with the size of the deposit in $100 , the amount of the transaction must be only $2 .

The efficiency of the strategy depends on many factors, but, probably, the most important of them are the accuracy of the settings of the indicators included in it, and the method of filtering false signals. Applying several indicators in one system, you can get a high-precision market movement forecast. For binary options are used for a long time and very effective. However, despite the accuracy of the indicator, the trader faces situations where the Bollinger indicators lead to losses. Here is a vivid example of such a market situation:

In classical trade over the Channelger Channel, the trader, having received a touch of channel boundaries, would set the contracts as shown in the figure - on the link from the channel border. They all would bring losses. And such a movement along the borders of the Collinger indicator borders occurs quite often, therefore, ultimately, a participant in binary trading, applying only one indicator, sooner or later completely will lose its trade in capital. But this situation can be very easy to change and send it into a profitable direction.

To test the strategy for binary options "Effective Bullinger" completely without loss and use of own funds, you can use the Binomo broker. Their quantities (20 pieces) are quite enough to assess the efficiency of the system and obtaining a certain experience of its use.

Choose a reliable broker

Bollinger bands are one of the most popular technical analysis indicators both in the forex market and binary options. Despite the fact that the latest platforms at the present stage are not equipped with a powerful functional, this tool is present in almost every terminal of each broker. However, the preliminary analysis is much more convenient to conduct in the platform Metatreer. What are the advantages of the indicator?

Description and composition of the indicator

As for the Bollinger band indicator, strategies for binary options are often based on it as the main element. The technical analysis tool is for more than 20 years, but it does not apply to obsolete, as well as not considered non-working. Its popularity is due to simplicity of use and efficiency.

The indicator itself consists of three bands, which in the medium traders are also called ribbons. In the center there is an ordinary moving average with a period of 20. Above and below are exactly such movings, but shifted to 2 standard deviations up and down from the main line. The price is all the time in the corridor between the upper and lower lines. It is believed that it moves from one border of the range to another.

The main principle of the indicator is the identification of flue and trend periods. Bollingerbands shrinks when the price goes in a narrow corridor (the upper and lower lines are very close to each other). In the event of such a situation, it is necessary to wait for a sharp pulse to any of the parties. Due to difficulties in predicting the time "Shot" of the price of the Bollinger strategy for binary options to use problematic. Nevertheless, some traders do it all the same. Figure below shows an example of an indicator. Pulses prices that were formed after finding a pair in a narrow corridor are circled into a red rectangle.

Consider examples of trading systems based on the Bollinger tape indicator, which can be used in binary options trading, given their specificity.

The following strategy is designed to trade from the boundary lines of the indicator and contains the elements of the Martingale system. The algorithm works almost on any timeframes, but in practice it is better to choose periods from M15 and higher, since the accuracy of the trading signals is more. Among the proven brokers, we recommend staying at Olymptrade.

The essence of the system is very simple. After moving the price from the range inside the Bollinger lines for their limits, it is necessary to wait for the closure of the first candle behind the top or below the lower line of the indicator. Immediately after that, you can buy options - PUT when fixing prices above the top of the Bollinger and Call when you close the candle below the bottom line of the indicator. The expiration period is 5-6 candles. During this time, the price usually time to achieve a central level. This is how it looks like a practical example.

If the purchase of the option did not bring the profit to the trader, and the price did not turn from the Bollinger boundary band, you can follow the principles of Martingale and enter the market re-double. This requires compliance with several conditions. If the price crossed the bollingerbands line and continues to move above it (in the event of an over-level intersection) or below it (in the case of the intersection of the bottom), it is not necessary to buy an option again. Moreover, you do not need to do this twice.

To follow the system of Martingale in trade in binary options, in the event that the price of the currency pair during the expiration period was trading inside the Bollinger bands and was located in the side corridor (FLET). This approach, of course, is associated with some risks, so it is possible to use it only with conservative rates and thoroughly follow the rules of strict risk management.

To reduce the risks, selling binary options on the strategy of the Bollinger lines described above, you can use an additional indicator of Bill Williams - fractals. The signal to purchases PUT is the formation of fractal above the top line of the indicator. Buy Call option can be purchased if the fractal was formed under the bottom band of the Bollinger. You can enter the market immediately after the fractal appeared above the candle. At the same time, one nuance should be known, which will save you money and inschers from many unprofitable deals.

Since the fractal is formed only when two candles after the current have lower maxima than the signal, with an uptrend trend and vice versa with a downward trend dominance, the price may exhaust its potential during this period. If the fractal behind the Bollinger line is formed, but the two subsequent candles have reached the central strip of the indicator, then it is not worth trading in this case, because the price may not reach the opposite border.

According to such a trading system, trading better on the M30 Timeframe. The expiration date of the option is the same 5-6 candles, since the price needs time to perform their goal. Consider the operation of the system on the example below.

Candles whose education would bring profitable deals to the trader are enclosed in a red rectangle. It should be understood that the signal candle (fractal) must close outside the Bollinger lines, and not just pierce them with his shadow.

It should also be borne in mind that in optional trade, this strategy does not work during the increased volatility of financial instruments caused by the publication of important economic news. If you see the graph of a large variation of prices, candles with large bodies or shadows, from trading at such a period it is better to refuse.

The Bollinger Indicator is an effective tool that often use traders in binary options. However, it is not self-sufficient and when used in the singular gives a certain number of false signals. To increase productivity of your trading and increasing its profitability, use other indicators that will perform filters for the Bollinger tape tool. Please note that the profitability of trading is very dependent.

It will be about the legendary indicator, on the basis of which many successful trading strategies are based. Bollinger bands are used by professional traders on Walle Street, as they allow you to perform a qualitative analysis of the market motion.

Before parsing variations with an indicator ....

Let's stop a little on the personality of the creator of the trading tool - John Bollinger. Without a doubt, he is a financial genius, has a large number of finance premiums, as well as the author of the book - "Bollinger about the tapes of Bollinger." The book describes in more detail the essence and operation of the tool, and is also a directory for trading a variety of assets. The main advantage of the book is the description of the market work in a clear language, without unnecessary formulas and technical terms.

His work with financial markets began in 1977. And after a short time, he developed his trading system, allowing to calculate the trend in various groups. It is the creator of the first site in the US territory with the analysis of technical analysis - it was established in 1996. John - Great Scientist, Financial Worker and Owner of several companies.

Bollinger Strategy in Binary Options

All methods discussed below are ideal for use, most considers it a highly efficient tool. It is recommended to use it on 5 and 15-minute graphics. For turbo-option lovers, it is recommended to confirm the signal with indicators at older time periods.

How the Bollinger strip indicator works

The main focus of the indicator is to determine the level of volatility in the market, with which it copes on perfectly. The tool is recognized as one of the best for commerce, both for beginners and experienced traders - its popularity in simplicity.

• The moving average, located in the center (standard period - 20).
• Upper moving average 20+ (deflection x2).
• Lower sliding average 20- (deviation X2).

The standard deviation lies as a fundamental criterion used for calculations and drawing strips. It works due to the special formula that the traders do not need to know, because the whole process is in automatic mode. The main part of the indicator that interests us is a corridor, filled with gray on the chart, its boundaries coincide with the upper and lower stripe. When the graph of the graph goes beyond the channel borders, you should look for opportunities to enter the market.

Bollinger bands are an oscillator that are provided in trading instruments, but it occupies a special position in the ranking of traders. When the market volatility increases - the corridor expands, and when the volatility will fall, the corridor is narrowed. These are the highlights to pay attention to while working with the indicator.

Major receptions of using Bollinger strips

Consider several techniques that are most commonly used. Mostly fairly simple but effective ways.

Thanks to the ability to show a change in volatility on the market, it can be seen how the corridor narrows and expands, which demonstrates the wave-like construction of the graph. After analyzing the schedule and work, we conclude that after the narrowing of the extreme lines, their expansion follows, respectively, the price is moving into one of the parties. This is cyclically, it means that you can after each narrowing of extreme lines, expect growth or falling prices.
It is enough to look at the chart, as there is a change in price movement after narrowing and expansion. Thanks to changes in the width of the channel, traders can find a lot of opportunities for entering the transaction.

The bulk of the candle time is carried out inside the channel - with this situation there is nothing interesting, to enter the market. The interest wakes up as soon as the price candle of the asset approaches one of the channels of the channel - this moment provides opportunities for opening the transaction. Suppose the price decreases, touching the bottom line of the Bollinger and pierces it - this indicates the rapid reversal of prices and the candles will go back to the channel. When the price is raised, the situation is similar, only the input must be made to a decrease.

An important nuance: predict 100% price movement is not possible, changing the price near the borders of the channel can occur only in the absence of a pronounced trend. You can determine the ability to enter the following trading.

The breakfast of the extreme lines is the signal to the following price movement:

• the price will change the movement;
• strengthening trend;

The graph shows how a walk through the upper strip is a continuation of the trend. At this time, the price reaches the upper line or crosses it, slightly lowers, fights off and up with a new force. The example is clearly seen that there were several points of touch and the total trend continues to go up. Exactly the same situation works with a downward trend.

The recommended time to enter the transaction is the touch of one of the boundaries of the indicator. It must be waited when the price bounces off to the midline and enter the trend direction. Such trade is available at a good trend, but the question arises: how to determine the trend turn? This uses special trading figures "W" and "M". The author of the indicator found about 50 such figures that are similar on the principles of construction.

Figure "W"

The pioneer in identifying this figure is Arthur Merryl, a trader, whose ideas used Bullinger to improve his shit. It is determined at the bottom of the chart, it can place the first part of the letter at the level higher than the second - however, this item is optional.
Consider in the following chart the location of this figure on items.

1. The first lower value.
2. Return price to the middle line and hugging.
3. Pricing to the bottom line (the candle does not concern).
4. Crossing the middle line and trend movement up.

This figure, when working out all conditions, shows the change in the direction of the trend. The entrance must be done at 4 points, as soon as the price crossed the average sliding - to enter the direction of price movement.

Figure "M"

This figure should be sought at the top of the graph - it forms a double vertex. The graph see the first jerk to the top line of the Bollinger, then the price is lowered to the midline and rises again, but does not touch the upper line, after which there is a sharp drop and sample of the middle line.

M-Figure Location

1. The first top value.
2. The price goes down to the midline.
3. Pricing to the upper line (candle does not concern).
4. The intersection of the previous lower level (marked with a blue dotted line).

After the fulfillment of the conditions, you can enter the market on a new trend. Also, it is worth noting that before lowering the price, a narrowing is observed, and after it the expansion of the strips. Using the figures of figures to relate to simple trade strategies with the Bollinger bands.

Combination of Bollinger lines

To work successfully with the indicator, you will need to study all the figures and situations that we reviewed in the article. To do this, study the story, look for figures, highlight them on the chart and trade on the demo account