Binary options trading system based on Bollinger strips.
This trading system is based on “Bollinger Bands” and “Zig Zag” indicators. The full name of the strategy is “One Touch Strategy Bollinger Bands and Zig Zag”, i.e. “Line Touch Strategy”. It is intended mainly for binary options, but can also be presented as a price following strategy for normal trading in financial markets. If used for binary options, almost any timeframe from 5 minutes to 24 hours can be used. However, each timeframe has its own expiry time. For example, for 5 minutes the option should have a duration of 1 hour, for 15 minutes it should have a duration of 3 hours, and so on.
The main indicators of the system are “Bollinger Bands” with settings (20.3) and (20.2), “Zig Zag” with settings (12, 5, 3) and (8.2, 3). Added CCI indicator (14) 90-90 and Stochastic 11-5-5 to filter signals.
This graph shows the conditions for the promotion game. First, the price should touch one of the lower lines of the indicator “Bollinger Bands”. Or close the candle. There should be no discrepancies between the lines of the “Zig Zag” indicator. It is possible to enter after crossing the stochastics lines upwards and at the value of CCI above -90. One more condition: The entry candle must be above the blue line. On this timeframe, the contract expires in 3 hours, i.e. 12 candlesticks
Here’s an example of a demotion contract. The price touched the top red line and fell below blue. Stochastic lines crossed downwards and CCI fell below 90. There’s no difference in the Zig Zag lines. In this case, the option expires 1 hour after purchase, i.e. the same 12 candlesticks. Try to choose the right binary options broker.
This system can also be used for Forex trading. The only thing left to do is to determine the level of stop loss and ways to close the deal.