BINARY OPTIONS DIVERGENCE STRATEGY WITH BOLLINGER BANDS

BINARY OPTIONS DIVERGENCE STRATEGY WITH BOLLINGER BANDS



Divergence Method of the trading.

What 's divergence?

In an up trend that will setup as a bearish trade, you 'll see the price making higher highs but you'll see the indicator making lower high.

In opposite direction?

In an up down taht will setup as a bullish trade, you 'll see the price making lower lows but you'll see the indicator making higher low.

Time Frame 5 min= Time expire 60 min.
Time Frame 15 min= Time expire 180 min.

Metatrader indicators:

ATM RSI Histo Triple Stochastic Divergence indicator;
Fibonacci Retracement: XIT Fib indicator.

The price should be above the upper Bollinger Bands indicator in case of a bearish divergence and in the same manner the price should be below the lower Bollinger Bands indicator in case of a bullish divergence.

When the bullish divergence is spotted (time frame 5 min), it is a signal for buying a 1 hour call option.

Buy When the red bars of the indicator ATM RSI Histo Triple Stochastih Divergence retrace below the dottet black line.

Touch points are the Fibonacci Retracement: XIT Fib indicator.

In the same manner when a bearish divergence is spotted (time frame 5 min), it is a signal for buying a put option.

Sell When the blue bars of the indicator ATM RSI Histo Triple Stochastic Divergence retrace below the dottet black line.

Touch points are the Fibonacci Retracement: XIT Fib indicator.

This method of trading based on divergence can also be applied to Binary otions strategies High / Low but this method of trading is not for beginners.