For this technique for binary options with expiry 20-30 minutes we will use a few indicators, very effective and used by the best professional traders. We will need them:
We will use a 15-minute time-frame
In this technique, the CSR indicator will give us the signal to enter the market as soon as it crosses the 50 marks. We will invest upwards if the CSR crosses the 50 level from bottom to top, while, if it crosses from top to bottom, we will invest upwards.
At the same time, we need another signal to be given to enter the market, namely that the candle representing the price must be crossed from the 14-year moving average.
In the case of a bullish trend, it will be the green candle to be crossed by the average, in the case of a bearish trend, it will be the red candle.
It is always necessary to invest when the Bollinger Bands are sufficiently wide and when the RSI makes wide movements. In this figure we only have a chance to enter the market downhill with a deadline of 20 or 30 minutes. The signal is very strong, the Bands are opening, and the RSI crosses the 50 level from top to bottom with wide movements. In its downward movement, CSR is quite strong.
The red candle is crossed from the moving average to 14 periods.
In this other chart we have 4 investment opportunities.
In these cases the two conditions were met, that is, RSI crossed the 50 level and at the same time the spark plug was crossed from the moving average to 14 periods.
The technique is very simple but effective if it is applied properly, if the two conditions do not occur simultaneously, it is not recommended to invest. The investment time is 20 to 30 minutes, a shorter time is not recommended. If you really want to reduce the waiting time of the various signals, you could set a 10-minute time-frame to be able to invest with a time span of 15-20 minutes.
Welles Wilder designed the RSI (Relative Strength Index), an oscillator that measures the relative strength of bullish and bear closures and the propulsive strength of the stock analyzed. You will need to identify the price performance of the security you are interested in over a given period, in our specific case of a 20-minute binary options investment.
The Rsi oscillator can be observed as it moves positively in the bullish phases and negatively in the bearish ones. This trend is because, within a period, in the bullish phases, the positive closures will be greater in number and greater in intensity in terms of variation than the negative ones; just as, in the bearish phases, the negative closures will be greater in number and greater in intensity in terms of variation than the positive ones.
RSI is used to identify certain conditions in prices:
If at the end of the session the oscillator is outside an extreme zone after entering it it is said that "it is about to exit"; anticipating this signal may expose us has a greater risk, since it cannot be excluded that the crossing will not take place. It is not to be excluded the formation of false signals and that in the sessions following the exit from the extreme zone the oscillator returns to its steps and returns there.
The RSI is a tool mainly suitable for trading range conditions, its use also depends on the period over which it is calculated:
Depending on the personality of each security you can determine different nuances, so you need to analyze very carefully and look for the best settings depending on the security and the general market conditions.
The Relative Strength Index (RSI) is widely used by analysts who want to invest in trading, especially those who trade in Forex, the futures market and stock markets. Please note that this article can be converted into PDF and used as a practical eBook. After having carefully verified its application with Bollinger Bands, we see its functioning in other contexts as well.
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