Binary Options Strategy 60 min Bollineger Bands and Momentum For MT4
Table Of Contents:
- Binary Options Strategy 60 min Bollineger Bands and Momentum For MT4
- Call option setup
- Put option setup
- Managing the trades
Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.
The Binary Options Strategy 60 min Bollineger Bands and Momentum For MT4 relies on a different approach. Typically a trader executes an order at the Bollinger band support and resistance. But for this method, we will be relating the mid bad the reading of momentum indicator. The momentum indicator is a very simple tool used in the assessment of trends.
The indicator has a reference line 100 and if the yellow push below the 100 lines, the pressure high from the sellers end. On the contrary, the buyers become more aggressive when the yellow line crosses above the reference 100 line. The required time frame for using this method is a 60-minute chart. Just place the template and you don’t have to focus on the complex settings as the ex4 file will do the rest. But you must ensure the trades are being executed in the 60-minute chart only.
Call option setup
Setting up the call option depends on the trend. First of all, skim through the daily chart and see if the trend is bullish. If not, you should not think about buying the asset. Let’s say the trend is bullish for a certain asset. Wait for the bullish bounce at the Bollinger band support. Note that the slope of the momentum indicator.
It must have a positive slope. If the bulls manage to push the price above the Bollinger band mid-band, analyze the yellow color signal line in the momentum indicator. If it passes above the reference line 100, you can go long. But be careful about the position of the trade.
The price must have a closing above the mid-band. If the break is the result of a massive bullish candle, wait for the price to drop to a certain extent. Go for the call option when the price hits the Bollinger band mid-band. Use the momentum indicator as to the filter tool.
Put option setup
For the put option, a trader needs to be careful about the trend. The trend must be bearish in the daily chart. After that make the switch to the 60-minute chart and look for the potential rejection of the Bollinger band dynamic resistance. If the price rejections, you should see the momentum curve slowly heading north.
Wait for a clear bearish break of the mid-band. As soon as the price break below the mind band, take the reading from the momentum indicator. The yellow line must fall below the 100 lines to consider it as a valid trade setup. If not, ignore the put option and wait for the next opportunity. Taking trades with an unclear signal is a big mistake and it can result in a significant loss.
Managing the trades
Management of trade plays an important role in the Binary Options Strategy 60 min Bollineger Bands and Momentum For MT4. You must not have two running trades in the same period. The maximum risk you can have while using this method is 2%. So, if two trades are taken, each of them will have 1% risk exposure.
Failing to follow this simple principle can the trading process much more complex. On the contrary, you should also focus on the expiry period. If the market is extremely volatile, the expiry period should be above 1 hour. If the price movement is stable, you should trade an option that has an hour expiry period.
Being an amateur trader, it is better to focus on a stable market. However, for taking trades in high volatility, knowing to blend the fundamental data with the technical factor is very important. Unless you learn this technique, always stick to the conservative technical method. Lastly, accept the fact losing trades will be common with this method. Trying to avoid losses can create heavy stress.
Download the complete system description and the files here:
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
