Binary Options bollinger band strategy Binary Options 2020

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Bollinger Band Strategy

Vendor: Binary.com

The Bollinger Band Strategy is built to serve as a sample for users who wants to add Bollinger band in their Binary Bot , a free tool for creating and applying your own automated strategies.

You can use Binary Bot to trade using both virtual and real money accounts.

Use this strategy as a sample to create your own strategies with Binary Bot. We can even help you sell the custom strategies you created in the Binary.com Shop. Contact us to find out more.

Instructions

  1. Download the Bollinger Band Strategy.
  2. Upload the strategy to Binary Bot.
  3. Happy trading!

Tip: Watch our video to learn how to upload the strategy to Binary Bot.

Note: Tick Trades and Volatility Indices are not available in all countries.

Disclaimer: The strategies herein should not be construed as giving investment advice, and you should not rely on any strategy as your singular factor in making or refraining from making any investment decisions. Binary options trading may incur losses as well as gains.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Trustful Broker. Recommended Only For Experienced Traders!

Trading Binary Options using the Bollinger Band Strategy

The Bollinger band strategy is one of the best strategies to use when trading binary options, because it creates clear signals that can be used to buy and sell the market in the form of above or below optionsRange binary options and one touch options can also be used to form a strategy using the Bollinger bands.

Bollinger Bands are a mean reversion technical indicator that is used to inform a trader when the market has potentially over stretched and there is likelihood that it will snap back. There are a number of different technical indicators that can be used to track mean reversion, the Bollinger Bands in one of the most prolific. Bollinger Bands (named after John Bollinger) are a statistical measure beyond a specific moving average. The measurement normally used is 2 standard deviations which create a channel around the moving average where 95% of all trades given the last 20 days will fall. The most often used moving average which creates the best returns is the 20 day moving average. When following a specific financial instrument, it is important to customize the moving average and standard deviations to create the optimal channel. The Bollinger band strategy can be used with any type of moving average and any standard deviation. A longer the moving average along with a larger standard deviation will provide fewer signals that potentially could be more reliable.

A trader will also have to determine the appropriate length that works well with binary options. An hourly chart matches up to a number of different brokers (market makers) that use and hourly time frame when creating their options. In the chart below the USD/JPY is displayed using an hourly chart. The Bollinger band technical indicator is overlaid, and the signals that are created are labeled. When an hourly price bar crosses below the USD/JPY Bollinger band a trader can set an above option or call to speculate that the market will be above a specific level. In the five examples below, all seem to snap back over a short period of time. On the flip side, a trader can place a below option (put) when the price bar crosses above the high Bollinger band range. In the five example below, each instance the market moved lower over a short period of time. The key to this strategy is the ability of the trader to find the correct period of time to place the binary option.

Additionally, a trader can speculate that prices will not continue lower (a miss options), or that the prices will move into a specific range (a hit range option) over a period of time. For a miss option, when the price bar hits a Bollinger low, place a miss option below that level. The same can be accomplished when the market hits a Bollinger high. For a hit range option, a trader can place that range above the market on a Bollinger low, and below the market on a Bollinger high.

This strategy can be customized and back tested, but a trader should consider testing this strategy since it creates strong signals.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Trustful Broker. Recommended Only For Experienced Traders!

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