Crush Every Trade: The RSI & Bollinger Bands Method Brokers Don’t Want You Using!

ForexPartners

Bollinger Bands and the Relative Strength Index (RSI) are two widely used technical analysis tools that traders often combine to improve the accuracy of their trading decisions.   Trade On Pocket Option: http://pocketoptioncapital.com  Bollinger Bands consist of a middle band, typically a 20-period simple moving average, flanked by two outer bands that are set two standard deviations away. These bands dynamically adjust to market volatility, expanding during high volatility and contracting during low volatility. Traders often look for price movements that touch or breach the upper or lower bands as potential signals of overbought or oversold conditions, respectively.  The RSI is a momentum oscillator that measures the speed and change of price movements, typically over a 14-period timeframe. It ranges from 0 to 100, with readings above 70 indicating overbought conditions and readings below 30 suggesting oversold conditions. When used in conjunction with Bollinger Bands, RSI can help confirm or reject potential trade setups. For example, if a security touches the lower Bollinger Band and the RSI is below 30, it may signal a stronger buy opportunity. Conversely, a price touching the upper band with an RSI above 70 might suggest a potential sell or short trade.  Combining Bollinger Bands with RSI adds a layer of confirmation that can help reduce false signals. Traders often use this combination to develop entry and exit strategies in ranging or mildly trending markets. It's important, however, to consider the overall market context and not rely solely on these indicators. For example, in a strong trend, prices may remain overbought or oversold for extended periods, and Bollinger Band breaches may not result in immediate reversals. Therefore, incorporating other tools such as trendlines, volume analysis, or support and resistance levels can further refine trading strategies and improve decision-making.  Open Account: http://pocketoptioncapital.com  Risk Disclaimer: Trading options involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument. Any trading decisions that you make are solely your responsibility. Past performance is not necessarily indicative of future results.  Intraday trading strategies, live day trading, live trading, quotex trading strategy, quotex trading strategy, binary options trading strategy, quotex trading app review, binary options, trading, quotex trading app, nifty prediction, binary trading, binary options trading, binary options trading strategy, day trading live, quotex, quotex strategy, pocket option, pocket option strategy, best binary options brokers, pocketoption strategy 2025, binary trading, binary options indicator, binary option, binary options trading, indicator mt4 binary options, best binary options brokers, copy trading,

Transcript

00:00In this video, I'll reveal an incredible Bollinger Bands and RSI strategy for binary options.

00:06It's straightforward, easy to use, and delivers a high win rate if used correctly.

00:10First indicator to our chart, head over to the indicators tab and add the Bollinger Bands to

00:15your chart. The Bollinger Bands indicator is truly remarkable because it makes identifying

00:19support and resistance levels super easy. Here's how it works. The center line is a moving average,

00:26while the upper and lower bands are standard deviation lines. These bands create a channel

00:30that expands and contracts with changes in market volatility. Once you've added the Bollinger Bands

00:35indicators to your chart, we're going to go ahead and make a few adjustments for this strategy.

00:40For inputs, you're going to want to change the period to 30 and the deviation to 2. For styles,

00:45you want to set the color of the top band to blue, the moving average line to orange, the bottom band

00:50to blue, and the background color to blue. And once you're done, you can click on save.

00:55Next, we'll be adding the RSI indicator to our chart. Head over to the indicators tab and add

01:00the RSI to your chart. RSI stands for Relative Strength Index. The RSI indicator is a powerful

01:06tool that helps determine whether a security is overbought or oversold. When the RSI line is above

01:1270, the price is considered overbought. And when it falls below 30, it's considered oversold.

01:19After adding the RSI indicator to your chart, we're going to make a few adjustments to the settings.

01:24For inputs, you're going to want to change the period to 13. For styles, you want to set the

01:28value of the upper line to 75 and you want to set the value of the lower line to 25. Feel free to

01:35change the colors of any of these lines if you wish. It's entirely up to you. It's all personal

01:41preference. Once you're done, you can click on save. Alright, now that we're all set, let's get

01:46these two indicators working together to generate some profitable trades. Let's dive into how the

01:52strategy works. We'll be using the one minute time frame for this strategy and we'll open three

01:57minute positions analyzing one minute candles for our trades. If the price moves above the upper

02:03Bollinger Band, you want to look for sells. And if the price drops below the lower Bollinger Band,

02:08you want to look for buys. While the Bollinger Bands indicator is useful on its own, it can sometimes

02:13produce false signals that may lead to significant losses. Therefore, in this strategy, we will combine

02:19the Bollinger Bands with the RSI indicator. For buy positions, the first confirmation comes

02:24from the Bollinger Bands indicator, where the price must clearly drop below the lower Bollinger

02:29Band. The second confirmation is provided by the RSI indicator. Look for the line to drop

02:34below the 25 value. Once both conditions are met, you can confidently enter a buy position.

02:40For sell positions, the first confirmation comes from the Bollinger Bands indicator, where the

02:45price must clearly move above the upper Bollinger Band. The second confirmation comes from the RSI

02:50indicator, where the line should rise above the 75 value. Once both conditions are met, you can

02:56confidently enter a sell position. And that's the strategy in a nutshell. Real simple and easy to

03:02understand. There's nothing complicated about it. Now, let's put it to the test. I'm going to get into a

03:08couple of trades to demonstrate exactly how to apply the strategy and maximize its potential.

03:13So sit back, relax and enjoy.

03:43muse always focus on the credit.

03:47You know, a lot of tradesman's culmination might be achieved.

03:48Even if you do not earn average in lot of trades, you will pay a budget you leave.

03:52So stand back, relax and enjoy!

03:56And let's go back and enjoy!

03:57But mycepzuge bênum is looking after a seat.

04:01It would take différence if you keep running a shoe on the way

04:05around.

04:08When you are comfortable or notizzy, make sure that you are comfortable and

04:09live!

05:10That's three wins in a row.

05:35I patiently waited for three setups and each one played out perfectly.

05:39By sticking to the strategy's simple rules, I reaped the rewards in the end.

05:43Now, I would strongly advise that you avoid trading during ranging or consolidating markets.

05:48In these conditions, there's no clear trend and the price movement is slow, choppy and

05:53lax volume.

05:54Using this strategy in such markets can lead to poor results.

05:57You'll notice the Bollinger Band's channel narrows when the market moves sideways with

06:02low volume.

06:03Avoid trading in these market conditions.

06:06Stick to trading in trending markets with clear direction and high volume.

06:10This strategy performs best under these conditions.

06:13At the end of the day, if you adhere to the strategy's rules and you keep things simple,

06:17you can achieve impressive results.

06:20Because let me tell you, this basic strategy has significant potential when used correctly.

06:25But otherwise, I hope you guys enjoyed the video.

06:28And if you did, go ahead and smash a like on the video and subscribe to the channel if you

06:32are new.

06:33And I will see you in the next one.

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