Many traders combine the power of Relative Strength Index and Bollinger Bands to build the reliable and successful trading strategy that works great for turbo options. Turbo options are not easy, but they are very profitable. As you know in binary trading the profit does not depend on the number of points, but it depends on the direction of the trend.
How to set up the terminal and indicators
Turbo options work best for the highly volatile asset, such as currency pairs or cryptocurrencies. We recommend creating your strategy for turbo options on Relative Strength Index and Bollinger Bands. Start with the period of 60 seconds and use Japanese candlesticks on the chart. You will find all necessary tools and indicators in the Quotex.
Setting for Bollinger Bands is a period of 20 with a deviation of 2.
Setting the Relative Strength Index requires more attention. The default RSI settings of 14 candle period is for medium-term trading and you need to change it if you want to trade turbo options.
Setting for RSI is a period of 7. Also change default RSI of levels to 20 and 80.
Overbought and oversold levels give signals for buying a contract so when we change the period to 7 and leave the default zones 30 and 70, then the RSI gives too many false signals as response to market noise.
How to trade options with RSI and BB at 60 seconds?
Your strategy for turbo options should combine strengths of RSI and BB. Do not believe posts from people claiming good results from only using the RSI. It is either an anomaly or cherry-picking. Here how the strategy works:
CALL when the RSI signal line leaves the oversold zone. At the same time, a breakdown of the lower level should be observed on the Bollinger Bands.
PUT when the signal line of the Relative Force Index leaves the overbought zone. BB shows a breakdown of the upper level of the channel.
For turbo options, the expiration period should be at least 2, but not more than 4 minutes.
As you see the idea is simple. Buy if the widening variable remain within the Bollinger and the widening of the bands is less than a pre-specified margin as well as the RSI reaching the oversold zone. Sell if the widening variable remain within the Bollinger and the widening of the bands is less than a pre-specified margin as well as the RSI reaching the overbought zone.
In conclusion, remember that the RSI depends on the current market state. If it’s ranging, then it will likely provide good signals. If it’s trending, then it’s better to use other tools.