Strategy for the binary options broker Quotex - Bollinger Bands

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The strategy is based on the Bollinger Bands and RSI oscillator. The combination of two indicators allows you to find the best trade entry points, and filter out false signals.

Bollinger Bands are used on the chart as support and resistance lines, and the central line determines the direction of the trend. The greater the distance between the lower and upper lines is, the higher the market volatility is.

The RSI Oscillator shows at what moments the market is overheated and a trend reversal is coming. These periods are indicated by oversold and overbought levels.

Setting up indicators on the Quotex broker platform

Bollinger Bands have the following parameters:

• Period: 20;
• Deviation: from 2 to 2.5;
• Color: by default.

The RSI parameters are:

• Period: 14;
• Overbought level: 80;
• Oversold level: 20.

The strategy is best used for trading on the 5-minute time frame. The optimal expiration time is 3 candlesticks or 15 minutes.

Conditions for entering a trade on the Quotex broker platform

An up trade can be opened, if the following conditions are met:

• The candlestick closed below the lower Bollinger band;
• The RSI line fell into the oversold zone, i.е. below level 20;
• Entry into a trade is at the opening of the next candlestick.

A down trade can be opened, if the following conditions are met:

• The candlestick closed above the upper Bollinger band;
• The RSI line rose to the overbought zone, i.е. above level 80;
• Entry into a trade is at the opening of the next candlestick.

Usually Bollinger Bands help to determine entry points, and the RSI indicator serves as a filter to filter out false signals.