Strategy with the RSI indicator binary options. Triple confirmation strategy for options trading. RSI on small timeframes

In this article, we will consider in detail the best, accurate indicators in 2020 for binary options: RSI, SMA, indicators without redrawing, Bollinger Bands, Moving Average, MACD, Parabolic SAR, Stochastic Oscillator, Raff linear regression channel indicator, etc. We will analyze their settings and strategies trading based on them for Binary Options.

1) RSI indicator: settings and strategies for trading

It is important for all traders to see changes in the speed and amplitude of movement of a currency pair or other financial asset. These two indicators can be combined into one concept - “momentum”. This is what he can display RSI indicator for binary options. Simply put, using the RSI technical analysis tool, a speculator sees weakness or growth in the current price of the asset in question. This indicator is based on closing prices for a specific time period.

Where is the RSI indicator used?

Due to its high efficiency, this assistant can be used on:

  • indexes;
  • options;
  • Forex currency pairs;
  • futures;
  • promotions

How to use the RSI indicator on binary options?

After applying it to your working trading chart, you will need to observe the behavior of the relative strength index curve line. If the line crosses the 70 area, the financial asset is overbought, which means you should look for entry points to sell (PUT options). However, if the RSI line goes beyond 30, then the currency pair is considered oversold. In this case, you will need to open long positions (CALL options).

Important: You should remember the golden rule of the Forex market, an asset cannot constantly rise or fall. Sooner or later it will show a pullback movement. These are the moments that the RSI indicator demonstrates well..

Let us once again note the fact that this oscillator is capable of showing the amplitude and strength of the market in real time. The indicators of this assistant move in the range from zero to 100.

What do these levels mean? They are very easy to “read” any chart.

Need to remember two simple rules:

  1. The closer the RSI indicator curves are to zero, the more likely it is that the price will rise.
  2. The closer the price of an asset gets to the zone (100) of this indicator, the greater the chance that the price will reverse and begin to fall.

By default, the RSI indicator has a period (14). This means that when calculating, it takes average prices over 14 days.

RSI Settings for Binary Options

Let us immediately note that most indicators use the most common settings. Among them:

  • period;
  • color;
  • line thickness, etc.

Important RSI indicator settings for binary options are its period and oversold/overbought levels. Initially, this parameter is set at (14).


This is the golden mean. Therefore, you can not change the period of the relative strength index. The secondary parameters are: line thickness, color and type of assistant.

Stochastic RSI Strategies for Binary Options

We can find this indicator in the live chart of the Trading View service.


The settings can be left as they are. That is, (3, 3, 14, 14 close).

I successfully tested the indicator’s functionality in 2020 with the following brokers:

There are many strategies based on this “turkey” alone. Here is the simplest of them.

The essence of the strategy

First you need to determine the trend. As you know, it comes in three types:

  1. Rising (bullish).
  2. Descending (bearish).
  3. Flat (accumulation).

So, after the trend direction is determined, we wait for the Stochastic RSI for options to give a signal.


As you can see from the screenshot above, we have a downward trend. This means that we will only consider PUT transactions. To do this, we wait for the price correction of the asset in question, as well as the moment when the indicator lines Stochastic RSI for binary options(or at least one of them) will be above the 80% zone. Then there should be a top-to-bottom crossing. At the close of the signal candle, we buy an option like PUT (Below).

Example of buying a CALL option


To be able to enter into “Higher” (CALL) trades, you need an upward trend movement of the asset. Then we wait for the lines Stochastic RSI indicator for binary options will end up in zone (30). At this point, you should focus on the intersection of the Stochastic Relative Strength Index lines from bottom to top.

As you can see, all the conditions for concluding a transaction to buy a CALL (“Higher”) option have been met, so we can safely conclude the transaction.

Strategy optimization: For example, transactions using the above strategy will be concluded on the M5 timeframe, then the trend can be monitored on the H1 and H4 charts. That is, follow the trend, not against it.

Bollinger and RSI strategy for binary options

These trading tactics complement each other perfectly. They significantly reduce the number of incorrect signals. RSI shows whether an asset is oversold/overbought. As for Bollinger Bands (abbreviated “BB” - ed.), this assistant is presented in MT4 or a live chart in the form of three lines [moving averages]. The middle line of the Bollinger Bands indicator displays the trend of a currency asset. If the candle is above this line, it means a bullish trend; if below, it means a bearish trend.

I successfully tested the indicator’s functionality in 2020 with the following brokers:

The lower and upper lines of the “BB” indicator indicate oversold and overbought conditions. That is, in essence, these are the same moving averages that have a positive and negative deviation.

So, we've sorted out the indicators. We plot them on the chart in the MT4 trading terminal. They are standard, so there is no need to download them separately.

The essence of the strategy

This is an extremely simple trading system. The main thing is to follow its rules, and success will not keep you waiting.

A trader who wants to enter into a CALL (Higher) trade at RSI and Bollinger Bands indicators for binary options, must wait until the following conditions are met:

  • the candle broke the lower border of the Bollinger Bands indicator from bottom to top;
  • basement RSI crosses the 30th level from bottom to top.


To be able to enter into a PUT (Down) trade, a trader must wait for the following conditions:

  • the candle broke the upper border of the Bollinger Bands indicator from top to bottom;
  • RSI crosses the 70 level from top to bottom;


Expiration dates: expiration time of the contract two time candles (1 hour if the timeframe is M30).

Important: Bollinger and RSI strategy for binary options It is best used on two charts: M30 and H1.

2) SMA for Binary Options: indicator and strategy settings


SMA Basics

SMA is an abbreviation for Simple Moving Average. This assistant has been used in all markets for quite a long time. Note that this technical analysis tool shows the arithmetic average of prices. At the same time, fluctuations in these same prices are eliminated. Only the prevailing moods are demonstrated. If we consider the SMA indicator for options from the point of view of technical analysis, then it can act for the price of the asset in question. This assistant displays signals with a delay, so that the trader has time to make a decision.

I successfully tested the indicator’s functionality in 2020 with the following brokers:

SMA Features

Simple moving averages can:

  • determine the current trend, as well as its direction;
  • show a sideways trend (flat);
  • confirm the presence of a particular trend to filter signals in conjunction with other indicators;
  • predict future trend reversal.

Important: If a long-period moving average is analyzed, a long-term trend is assumed. The strength of a trend can be determined by the angle of its inclination. The larger it [the angle], the stronger the trend.


How to use the SMA indicator for options

Let us outline the basic rules for using this indicator. We emphasize that having memorized them once, the trader will not make gross mistakes in the future, which can lead to the loss of even the largest deposit.

So, let’s outline the main features of the SMA options strategy:

  1. There are a large number of variations of moving averages, which help determine entry points and breakout levels with great accuracy.
  2. The main key to success in trading in financial markets is to learn how to determine resistance/support levels. In this sense SMA indicator for options in MT4 it is considered an excellent tool.
  3. The Moving Average, which has a period of 200, will display long-term trends. Often, experienced traders use this indicator this way: if the price moves above the SMA 200, then purchases are considered, if below, sales of the asset are considered.
  4. Moving Average with a period of 50 makes it possible to identify medium-term trends.
  5. For more accurate signals, using medium-term SMA options strategies, it is better to check prices on a higher time frame, but with the same moving average period.

Indicator settings

To effectively trade BO using moving averages, you will need to fine-tune this indicator. Its main parameter is the period. Below we will give recommendations on SMA settings for options for different time strategies. For short-term trading tactics, you need to set the moving average period from 5 to 20.


For medium-term trading systems, periods from 20 to 60 are suitable


For traders using long-term TS, the SMA period should start from 100.


As you probably noticed, with an increase in the period in SMA settings for options moves away from the candles, despite the trend.

Profitable 2 SMA strategy for options

Trading Rules

You need to set 2 SMAs with different periods and colors on the asset chart in the broker’s trading platform:

  1. Moving average with a period of 60 (let it be blue).
  2. SMA with a period of 5 (color it red).

After installing two SMAs, the chart should look like this:


It is better to immediately switch to the 5-minute chart. It is recommended to set the expiration period within 30 minutes, that is, in our example, this is 6 time candles. Although no one forbids looking for entry points on the minute chart. In this case, we recommend setting the contract expiration time to 5 minutes.

I successfully tested the indicator’s functionality in 2020 with the following brokers:

Example of trades “Higher”

To make trades “Higher” on the chart by 2 SMA strategies for options The blue MA must be crossed from bottom to top by the red MA. Visually it looks like this:


The “Higher” trade must be concluded as soon as the 2 SMA is crossed.

Example of trades “Below”

To conclude “Below” contracts, you should wait until the blue moving average crosses the red one from top to bottom.

Here is a clear example of such an intersection:


3) Merlin indicator strategy for binary options


Merlin indicator strategy for binary options- a strategy based on the use of standard market forecasting tools and classical money management techniques.

I successfully tested the indicator’s functionality in 2020 with the following brokers:

System tools

So, when assessing the market using the strategy for making money on binary options “Merlin”, two standard indicators are used:

  • Channel Bollinger Waves – this technical service generates a dynamic channel on the liquidity chart in which the price makes market movements. Its use as a means of generating forecasts makes it possible to clearly identify the technical levels of the market for the execution of trading rates in futures contracts. At the same time, we note the accuracy of the indicator signals and the correct reaction of the instrument to changes in quote trends.
  • Oscillatory - MACD. This technical tool is necessary to confirm the indicators of the main indicator of the strategy. This opens up the opportunity to filter out false trading signals and allows you to achieve higher trading performance.

To ensure that the dynamics of trading operations and the speed of profit making are high, apply the indicated tools to a chart with a technical period of the M1 timeframe. As a result, the working space of the trading platform will acquire the following layout mode:


Trading Rules

To open a contract to increase the value of an asset (CALL), use the following set of standard indicators:

  • After briefly touching the lower level of the Bollinger channel, the price turned to form an upward trend
  • A confirming trend reversal signal has formed on the MACD oscillator in the form of an upward divergence of moving averages


To open a put down contract (PUT), use the following set of standard indicators:

  • After briefly touching the upper level of the Bollinger channel, the price turned to form a downward trend
  • A confirming trend reversal signal has formed on the MACD oscillator in the form of a downward divergence of moving averages


Expiration

The calculation of the option expiration indicator must be carried out taking into account the working time frame of the chart. We recommended that you trade on a one-minute period, where the optimal expiration indicator is a range of 5-10 minutes. This way you will be able to effectively work out the system’s forecasts and get statistics at the level of 86% of profitable contracts.

4) Bollinger Bands indicator - Bollinger Bands for binary options trading

This is a fairly popular assistant for determining amplitude volatility in the market, authored by John Bollinger. It is built in the form of a canal, the boundaries of which are on both sides of the center line. The width of the corridor is limited by boundaries, constantly changes and depends on the standard deviation from the center line over a certain period.

I successfully tested the indicator’s functionality in 2020 with the following brokers:

In general, speaking, Bollinger bands constantly converge and diverge, depending on the decrease and increase in the volatility of the trading asset.


A trading signal for this instrument is considered to be the intersection or rebound from one of the borders and aspiration to the middle line. As you can see in the screenshot above, the price very often returns inside the Bollinger corridor after it has just crossed the upper border. This pattern can be effectively used for rebound strategies.

So, how to use the Bollinger Bands indicator in trading? Below on the chart we have shown with circles potentially profitable places to enter the market:


5) Moving Average (MA) indicator for options trading

This is one of best indicators for options, showing the average value of asset price fluctuations over a certain period. The longer the period you take, the smoother the curved MA line turns out, that is, more averaged. If the period is short, then the indicator describes the progressive oscillatory price movements in more detail.

I successfully tested the indicator’s functionality in 2020 with the following brokers:

The trader chooses the period himself, depending on the strategy he uses. In addition to the difference in period, Moving Average is divided into two more types:

  1. Simple Moving Average
  2. Exponential Moving Average.

Let us now begin to consider the simple MA option


This is what the optional one looks like indicator M.A. The construction of this curved line is based on calculating the average value of prices taken over a certain period N, where N is the number of candles. On an asset chart, the trend can be determined by the slope of this moving average line. But there is also a drawback when the instrument overreacts to a sharp jump in quotes. That is, when the indicator reacted sharply to an impulse price movement, signaling a trend reversal, and suddenly the market returns to the previous trend, but the moving average has already signaled a reversal to us. The next one under consideration is exponential MA. It is calculated as a weighted moving average, the values ​​of which decrease exponentially, starting from the last one. The figure shows an example with two MAs: simple and exponential:


Here we see that the green curve (EMA) is closer to the price than the red one (MA), because the exponential curve (EMA) displays more accurate dynamics of price changes than the simple one (MA). This is due to the fact that the EMA puts more emphasis on recently changed prices, which gives more accurate signals in the current moment.

6) MACD indicator for binary options trading

This is a dynamic indicator that constantly indicates the trend of market movement. On the chart it is depicted as a histogram and an average moving line, which acts as a signal line. A MACD value greater than the zero level indicates an increase in quotes in the short term, that is, a growing trend. A sell signal using the MACD indicator is considered to be the intersection of its zero level line from top to bottom, and vice versa, when the MACD zero level is crossed from bottom to top, it indicates a bullish trend.

I successfully tested the indicator’s functionality in 2020 with the following brokers:

Also in practice, it is successfully used to determine overbought/oversold zones, which are defined as the intersection of the histogram and the MACD line from bottom to top - to begin an upward correction and vice versa from top to bottom - for a downward trend.


Using the MACD indicator, you can determine a rather rare divergence signal on the chart. This is when a discrepancy appears between the price chart and the histogram, that is, with the next increase in the maximums on the quotes, there is no increase in the new maximum on the histogram. This trend indicates a weakening of the current trend and signals a possible imminent market reversal.

The signal to buy the “Below” option will be the intersection of the moving averages above the MACD zero mark, as well as the beginning of the formation of red bars below zero.


This MACD tool has a drawback, which is explained by the fact that there are delays in signals indicating the beginning of some kind of reversal.

7) Parabolic SAR indicator

This tool draws signal points on the asset’s chart, which suggest a potential reversal in a given area. If dots are drawn above the candles, then this is a signal of a reversal of the bullish trend and the beginning of a downward movement. If the points are below the price, this signals the end of the trend and the beginning of an upward movement. A trading signal is considered formed if the first 3-5 new points appear on the chart.

I successfully tested the indicator’s functionality in 2020 with the following brokers:

If dots are drawn above the current price, then this is a signal to conclude a DOWN transaction and vice versa, if below the price, then this is a signal to buy an UP option.


As you can see, the Parabolic SAR technical tool is a point signal device, which means it is very easy for any beginner to understand. But it also has a drawback that requires its successful use when the market has high volatility and trending movements. In the event of a sideways trend, many of its signals become false, so it is good to combine it with any other indicator that acts as an additional filter.


The fluctuation of the Stochastic indicator is limited to the values ​​0 and 100, where 2 levels are indicated: 80 and 20. If the indicator lines are above 80, it means that the price of the trading asset is in the overbought zone and it’s time to sell the asset, and if below 20, then the asset is in oversold zone, so you need to buy.

Raff's linear regression channel allows you to efficiently find many trades in a short period of time. This method was developed by Gilbert Raff, which is channel trading based on resistance and support levels.

The upper line of the Raff Regression Channel acts as resistance, and the lower line acts as support, respectively. Transactions are concluded in the direction of price rebound from one of the lines into the channel, and the expiration period is 1-2 minutes

Often quotes can go beyond the boundaries of the regression channel, but staying outside it for a long time only increases the likelihood of a reversal and the price returning back inside the channel. Trading with this instrument makes it possible to make a large number of transactions, which means it is necessary to limit risks to 1-3% of the deposit in order to avoid large losses.


10) Accurate indicator for Aroon Down options

We would like to present to your attention another interesting indicator. Select Aroon Down in the “indicators” tab (standard settings):


The installed indicator looks like


How to trade this “turkey”? So, if the blue line crosses the red dotted line from top to bottom, then you should expect a signal to buy an option like “Higher”. If the blue line crosses the red dotted line from bottom to top, then we should expect a bearish candle, that is, this is a signal to open a “Lower” position.


Important: works great on M15, M30 and H1 charts. Our testing showed 90% of profitable trades and 100 open positions on various financial pairs. You could say this is the Grail.

And this is how an example of opening a transaction to buy a PUT option (“Below”) looks like. It is recommended to set the expiration time of the transaction from 1 candle on the minute chart.

As you might guess, this system is named after the indicator of the same name, the full name of which translates as “relative strength index”. Before looking at trading rules, let's first remember a little theory.

The RSI indicator was developed in 1978 by W. Wilder and was initially used for trading on daily charts, but several decades later it became obvious that this index shows good results on lower time frames, i.e. is a universal tool.

Of course, when binary options appeared, popular brokers almost immediately added RSI to the list of analytical tools, this is how, for example, it looks on the working charts of 24option:

If you pay attention to its appearance, you will notice a cyclical pattern - the index values ​​first grow, reach a certain value, then begin to fall and rebound from the minimum, after which the wave is repeated countless times.

Thanks to its simple and logical calculation algorithm, the index reacts quite sensitively to market price fluctuations and can generate leading signals at the moment when the strength of sellers or buyers begins to deplete, and the price still continues to move due to inertia. It was this feature that formed the basis RSI strategies for binary options.

Rules for trading binary options using the RSI strategy

Today, there are two popular options for working with the relative strength index - rebounding from extreme boundaries and breaking through trend lines. Many readers may have already heard about the first approach; we are talking about buying binary options according to the following rules:

  • A trade of the "Higher" type is concluded after the indicator line (configured according to standard parameters) leaves the oversold area.
  • The "Below" contract is bought when the index returns to normal territory from the overbought zone.
  • The expiration time is set at an interval equal to the duration of five candles.

This approach corresponds to the “cheap and cheerful” characteristic, i.e. A similar strategy on RSI and binary options go very well together. Its only problem is that signals are tied to specific levels of the index scale, as a result of which many good entry points are ignored.

The solution was found in a slightly different plane - traders began to use not horizontal 70/30 levels as a signal module, but tangent lines built based on the highs and lows of the indicator:

This is the second main RSI strategy for binary options. From the markings in the figure above you can already get an idea of ​​the key principles of work, but without detailed instructions you cannot trade in the market, so I briefly described the rules by which I sometimes work:

  • set the calculation period for the RSI indicator to 60 candles (for one-minute and five-minute charts);
  • a downtrend is considered to be a situation where each new top closes below or on the tangent line;
  • An uptrend is understood as a situation when each new price low closes above the tangent line or is equal to its value;
  • an option of the “Higher” type is bought at the moment when the candle closes above the downward line (breaks through it);
    a “Below” type deal is concluded after the price consolidates below the rising line;
  • The contract expiration period is set to the same as in the first version of the RSI strategy for binary options.

Despite the fact that the strategies considered are very similar in essence, since in both the first and second cases we are looking for leading signals for a trend reversal, each of them has strengths and weaknesses. In particular, a system built on a rebound from overbought/oversold areas is characterized by the following features:

  • it works on the standard indicator period and is suitable for any assets and timeframes;
  • due to the fact that options are purchased only after the indicator line leaves the critical area, signals are rarely false;
  • Unfortunately, you have to pay for reliability, and in this case you have to sacrifice the number of signals - they appear very rarely.

Bonus page 24option- cash bonus when replenishing your account.

The second system has the opposite set of characteristics, i.e. generates signals much more often (at any point on the relative strength index markings, regardless of levels 30 and 70), but they are optimized only for M1 and M5 charts and more often turn out to be unprofitable.

Finally, I would like to note once again that the RSI strategy and binary options combine quite well, but the lion’s share of success in any market is competent money management, so I do not recommend investing more than 5% of the funds in your account in one transaction.

Stable earnings on binary options are possible only if you have an effective and proven trading strategy. Since the execution of the forecast for the value of the selected asset is limited in time, for effective trading you will need to use accurate and proven indicators. One of these can rightfully be considered the RSI oscillator, which is used even by professional traders who do not recognize the advisability of the practical use of computer analysis tools.

Description of the strategy

To get a stable income from binary options trading, it is not at all necessary to use many indicators at the same time. As practice shows, such a technique does not live up to expectations. The triple RSI strategy differs from classical trading systems. Its correct application will allow you to earn money even through turbo options with an expiration period from 60 seconds to 5 minutes.

Setting up the indicator

The triple RSI strategy involves using only one indicator with different settings. This will filter out most of the false signals. The potential profitability of the system is about 100% per month of the deposit amount. As a result of testing, it turned out that 8 out of 10 transactions are profitable. To start trading, you should install the RSI oscillator on the price chart three times. The indicator is a standard computer analysis tool, so it can be found in every broker's trading platform.

After selecting the desired instrument from the list of indicators, it is important to set the correct period settings, which should be 5 on the first, 14 on the second and 21 on the third RSI. As a result, the price chart should display 3 additional windows at the bottom of the terminal. It looks something like this:

In addition to the moving average parameters, it is important to adjust the 20, 80 and 50 levels in each additional window. The first 2 are standard, and the third will need to be set independently in the oscillator settings.

Trading Rules

In the additional indicator window, level 20 is an oversold zone (buying an upside option), and 80 (opening a downside contract) is overbought. To buy an option, it is important to wait for confirmation from all indicators.

The image shows an example of a successful purchase of a bullish option. In accordance with the rules of the RSI strategy, the only signal for opening a transaction is the presence of an oscillator with different parameters in the overbought or oversold zone. Confirmation of the correctness of the forecast is the formation of a candle in the direction of a new local trend. In the above example, a downward trend is observed. After the asset is overbought, the price chart changes direction, which is confirmed by the formation of an upward candle. At the point of opening a new price element, you should buy an upside option. The contract execution period must correspond to the formation period of 4-5 candles. When working with the M5 chart, the expiration period will be 20-25 minutes.

Taking into account the statistical results of trading using this strategy (80% of profitable trades), it is advisable to use the Martingale method to eliminate unprofitable trades. In this case, the maximum number of unjustified forecasts in a row will not exceed 2 contracts. These data should be taken as a basis when calculating the amount of the first investment. The maximum risk of a series of transactions should not exceed 10% of the capital amount. Thus, with a deposit of $100, the amount of the first investment should be no more than $1 (1+2+5 with a return on classic options of 85%). The last contract, worth $5, is guaranteed to compensate for previous losses and bring the expected profit. Variables should be changed depending on the return on the option.

If the chart analysis is carried out on time periods from H1 or more, then it is advisable to use the triple RSI strategy in combination with reversal patterns of the Price Action system. This will keep potential risks to a minimum. Before practical use of the system, it is recommended to familiarize yourself with the basic concepts of technical analysis.

Advantages and disadvantages of the strategy

The main advantages of trading using the triple RSI system include the following characteristic features:

  1. High potential profitability with moderate risks.
  2. For analysis, only one oscillator with different parameters is used, which guarantees high-quality filtering of false signals on low timeframes.
  3. Simple rules for buying options allow even novice traders to put this strategy into practice.
  4. Trading using the triple RSI system is effective even when analyzing the price chart at low time intervals.

Experienced traders have not identified any significant shortcomings of the trading system. However, an increased level of risk is possible when using the TS in trading cryptocurrencies or commodity raw materials. This is also due to the impulse volatility of such assets, which provokes a high percentage of false signals. Therefore, to work with this TS, you should consider exclusively currency pairs or stock indices as an investment object. Beginner traders are recommended to practice using triple RSI on a demo account. The optimal training period is 2-3 weeks. During this time, it is important to learn how to make stable profits and eliminate the emotional component when making trading decisions. Only after this is it possible to trade with real funds.

The triple RSI strategy is a very simple and effective trading system that definitely deserves the attention of novice traders. By strictly following the rules of the system, it is possible to significantly increase the amount of the starting deposit in a relatively short period.

During the experiments, we came across the fact that the “Triple RSI” strategy does not work on all trading platforms. In particular, we were unable to implement it on the Olymptrade and Dukascopy platforms. We don’t know why this happened; we attribute it to the technical features of plotting. At the same time, “Triple RSI” works great for brokers

2 years ago Technical analysis

RSI indicator for binary options: the best strategy to increase profits

Today we will look at setting up RSI for binary options using a simple but effective strategy - Triple Entry. This indicator is located in brokers' trading terminals or built into the MetaTrader application, which can be downloaded and used in addition to the main trading platform. I’ll say right away - the strategy is really simple, designed specifically for novice traders. There is no overload of values ​​and tools, so learning to trade using this method is easy and quick.

RSI strategy for binary options: “Triple Entry”

The indicator parameters are universally suitable for bullish and bearish contracts with any time frame: turbo options, 1 hour, 4 hours and 1 day. With the help of the settings, you can easily make a good profit in one working day. We will use three RSI indicators, having previously installed each one in the following sequence:

  • The first one is 5.
  • The second one is 14.
  • Third - 21.

The remaining values ​​remain unchanged. Make sure the settings are at their defaults. This allows you to obtain purely technical indicators. The advantage of such settings is that we minimize false trading signals, especially when working with a time frame of 1-5-15 minutes. A large RSI value filters out false signals of a smaller value. When all three lines are in the same area, it is time to open an option and make a trade. It looks something like this: RSI5 enters the area we need, followed by RSI14, and as soon as RSI21 appears along with the others, we find the desired contract, open a deal, buy or sell an asset.

The expiration time is equal to the number of candles on the timeframe. For example, for a 5-minute trade, select 5 minutes of expiration. Do not be alarmed if the technical analysis of a currency pair shows that the expiration time needs to be increased to 2-3 candles. Feel free to increase it, it will only bring more profit.

Let me summarize the trading signals for opening a trade:

  • When the indicators move into the overbought area, we open a downside option PUT.
  • When the indicators move into the oversold area, we open an option to increase CALL.

The levels remain unchanged: overbought - 70-100, oversold - 0-30.

Profitability of RSI binary options trading strategy

This trading system is very profitable, despite triple filtering. Yes, there will be much fewer signals, but the entry accuracy is 70%. Quite a high figure compared to the percentage of profit for other more complex systems.

Be sure to practice on a demo account before you start trading. I advise you to place small bets, and do not forget about averaging in case of losses. You can use this system with any type of asset and with any broker. Be sure to prepare for work in advance. Let me remind you: if deals in a row are declining, it is better to stop and reconsider your approach. The parameters are probably wrong or you are doing something wrong. It is almost impossible to make a mistake using such a system, but there may be small omissions. Also follow economic events and do not forget to read Olymp Trade trading recommendations.