Today we are going to analyse how to maximise our profit applying our binary options strategy using Metatrader4 and RSI Indicator (you can download it for free HERE)
How to setup our charts
We'll use a 5 minutes chart for our Intraday Trading on EURUSD.
First of all we need to add to our EURUSD chart the indicator we are going to use, in this case we will pick the RSI indicator. In order to maximize the results we can choose a 7 period RSI and we expand our bands!
Following these instructions we just applied the RSI to our MetaTrader4, the next step is to add the old classic Moving Average into our RSI.
In order to add the Moving Average we need to choose it from our Navigation section (on the left side of the screen), then we can click on it and we drug it till we reach our RSI chart.
At this point we pick a 9 period Movinag Average and we click on the Exponential Tab.
In order to add the Moving Average to the RSI it's really important thet you choose the "Apply to First Indicator's Data" tab!
Now we are ready to start our TRADING SECTION!
The Rules of RSI Binary Options Strategy
We can proceed using the following rules:
- When the RSI gets below 20 we should look for a BUY signals
- Wen the RSI gets over 80 we should look an exit of our trade as we are in a situation of OVERBOUGHT
When you can use this binary option strategy?
We think that the RSI binary options strategies is useful when you have a wide range of markets like in the evening time on main crosses like EURUSD. Our reades has confirmed this timing as best to trade with RSI Binary Strategy.
We can add more indicators as filter?
Yes! We have studied different charts templates and we have seen that you can improve your binary options profits if you use also Bollinger Bands as trading signals Filter. When prices are above the Up Bollinger Bands you can sell and when prices are under the Down Bollinger Bands