Binary options strategy one touch divergence with bollinger bands
The price fluctuates between the upper and lower bands, indicating overbought territory at the upper range and oversold territory at the lower range. Each consecutive time a candlestick touches a band, the odds of the price continuing in that direction decreases. Therefore, some wait to see more than one candle touch a band before entering a position, while others wait to see higher highs. Most Bollinger bands are calculated as 2 standard deviations below and above the 20 period moving average of the asset price.
Additionally, volatility increases as the bands widen, but as they tighten the volatility decreases and usually forecasts a move in either direction..
Testimonials Contact eXbino affiliates Introducing broker Contact us. Strategy advisor Our scientifically developed Strategy Advisor can use one of three indicators as a basis of its actions. Relative strenght index RSI The RSI indicator identifies overbought and oversold conditions by comparing recent asset gains to losses, based on the average of previous closes.
Moving averages Moving averages are useful to identify trends, reversals and price momentum as well as support and resistance levels.
Bollinger bands Bollinger bands are a volatility indicator that provide an excellent indication as to when a market becomes oversold or overbought. Our scientifically developed Strategy Advisor can use one of three indicators as a basis of its actions.
Pure economic science brought it to our platform, so that you could profit easier and faster. Below you can find a brief explanation on how the specific indicator works. All you need to do to take advantage of the strategy advisor is pick one of three possibilities — or maybe test all of them and find the one that suits you most.
The RSI indicator identifies overbought and oversold conditions by comparing recent asset gains to losses, based on the average of previous closes. This indicator oscillates around a center line with a value of When the indicator crosses the 30 line from below oversold territory , this indicates a buy signal. When crossing the 70 line from above oversold territory , a sell signal is indicated. Generally, values above 84 are regarded as very overbought while values below 15 are very oversold.
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