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This strategy may suit the preferences of impatient binary option traders, as it may be applied on any trading instrument currency pair, commodity, stock index, etc during any trading session. In addition, it utilizes one of the most preferred technical indicators, the Bollinger Bands.

For a detailed overview of this indicator, you can read the article in our Forex Academy. The time frame is set to 1-minute, while the Bollinger Bands should be set to default the middle band is a day Exponential Moving Average, while the upper and lower bands represent two standard deviations from that average.

second Binary Options Trading Strategy using Bollinger Bands

The expiry time is 5 minutes. Buying a Call Option.

In order to buy a call option, a trader needs to spot oversold conditions. In case the price of the trading instrument has broken below the lower band, a trader may anticipate a touch and a return within the two bands.

The trader may use candlestick reversal patterns as confirmation. In order to buy a put option, a trader needs to spot overbought conditions.

In case the price of the trading instrument has broken above the upper band, a trader may anticipate a touch and a return within the two bands. Again, candlestick reversal formations could be appropriate confirmation tools. Some traders may prefer to use the Average Directional Index ADX in order to delimit the area of trading.

1-minute (second) Binary Options Strategy: 14 of 18 wins

Therefore, they will look for the ADX to be at or to fall below its Founded in , Binary Tribune aims at providing its readers accurate and actual financial news coverage. Our website is focused on major segments in financial markets — stocks, currencies and commodities, and interactive in-depth explanation of key economic events and indicators.

Trading forex, stocks and commodities on margin carries a high level of risk and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite.

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