BBands Stop Binary Options Indicator

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Options Broker 2020!
    Ideal for beginners!
    Free Demo Account + Free Trading Education!
    Get a Sign-up Bonus:

  • BINOMO
    BINOMO

    2nd place in the ranking!

BBands Stop and Stochastic – Bringing Back Binary Memories!

BBands Stop and Stochastic Binary Options Strategy

In the beginning of my trading “adventure”, one of my favorite websites was forex-strategies-revealed.com and I still check it sometimes to see if they made some new additions or to review some of the existing strategies. That’s where today’s strategy comes from and it’s a pretty simple one, based on two Meta Trader 4 indicators: BBands Stop and Stochastic. Is it profitable, is it worth trying? I guess the success of a strategy depends on the trader who uses it so I’ll try to explain it as clear as I can and let you decide afterwards.

How to use the BBands and Stochastic Strategy?

As mentioned earlier, the strategy uses two indicators: the first is BBands Stop which is a pretty well known custom indicator derived from the classic Bollinger Bands but in this strategy it will be used primarily as a trend identifier. If dots are printed below price, it means an uptrend is in place and if dots are printed above price, a downtrend is established. We will only take trades in the direction of the trend so Calls in an uptrend (dots are below price) and Puts in a downtrend (dots are above price). Here is the picture showing both an uptrend and a downtrend:

If all the stuff about dots being above or below price seems too complicated, let’s make it easier: Green means uptrend and Red means downtrend (of course, you can choose different colors). Ok, once we have identified a trend according to the strategy, we will move on to the second indicator which is the Stochastic with settings 5, 3, 3. The main purpose of the Stochastic is to identify overbought and oversold conditions of the market so it will hopefully give us the perfect timing for our entry: Calls will only be taken in an uptrend when the Stochastic crosses upwards coming from oversold territory and Puts will only be taken in a downtrend when the Stochastic crosses downwards coming from overbought territory. Here is the same picture as above but with the Stochastic added to the chart:

As you can notice, we place Calls when price is oversold in an uptrend and Puts when price is overbought in a downtrend which is one of the most basic forms of trend following. Here’s a quick summary of the entry rules:

Call Entry:

  1. BBands Stop is below price
  2. Stochastic (5, 3, 3) crosses upwards coming out of oversold territory

Put Entry:

  1. BBands Stop is above price
  2. Stochastic (5, 3, 3) crosses downwards coming out of overbought territory

Chart time frame and Expiry time: This is a Forex strategy so a little tweaking is needed to adapt it to Binary Options. I noticed that usually if a 15 minute chart is used, a 2 hour expiry works very well, but sometimes even one hour is enough. However, this has to be tested and adapted to the market conditions.

Why does the “BBands Stop & Stochastic Strategy” Suck?

Almost all trend following strategies have their Kryptonite: the ranging market. Unfortunately it’s very hard to avoid false signals in a ranging market and even the original author of the strategy suggests that extra trend confirmation is needed to make sure you don’t get caught in bad trades. The “Suck” factor definitely comes from the fact that most of the profits made in a trending market will be lost when the ranging period starts if it is not identified in a timely manner.

Why the “BBands Stop & Stochastic Strategy” doesn’t Suck?

Once a trend is identified, the best time to join it is after a retracement and this is exactly what this strategy shows us: a pullback in a trend. Of course a retracement can turn into a full scale reversal or the trend may resume too late, causing our option to expire out of the money, but because we are waiting for an overbought/oversold condition of the Stochastic, the chances of trend resumption are higher.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Options Broker 2020!
    Ideal for beginners!
    Free Demo Account + Free Trading Education!
    Get a Sign-up Bonus:

  • BINOMO
    BINOMO

    2nd place in the ranking!

Wrapping it up – Test, Tweak and Trade

In its current form the strategy is too… let’s say “fragile”. Although the principle is very good, I don’t think the BBands Stop is the best indicator for trend recognition so the strategy needs more testing and tweaking before it can be traded. I mean, it can be traded right away, but successful trading is what we are looking for and I believe the strategy needs some extra confirmation.

Forex Binary Options Trend Following Trading System with MFI (Money Flow Index) Indicator

Super EASY and Highly EFFECTIVE Forex Binary Options Trend Following Trading System with MFI (Money Flow Index) and Double Bollinger Bands Stop Alert Indicator. The BBands Stop indicator (Bollinger Bands Stop line) is a trend indicator. When the price is over the green curve, the trend is bullish or bearish if the price is below its orange line.

It’s built with Bollinger bands phases and act pretty much like a Supertrend, the BBands stop line can also be used to determine stop-loss when you jump in a trend given by its signals (drawn with big “bullets” on chart).

In Forex and Binary Options trading, the BBands Stop binary indicator provides you with buy and sells areas.

  • Look to buy Call options above the green BBands dots (bullish trend).
  • Look to buy Put options below the orange BBands dots (bearish trend).

Bollinger Bands Stop Indicator for MT4 is best used on Higher timeframes but works on shorter TFs as well.

In Forex trading, Bollinger Bands Stop Indicator will show you where you should place your SL when entering the trade.

Additional to that it will show you how to use it as a trailing stop.

If following Bollinger Bands Stop Indicator with your SL then you have a greater chance to not get whipsawed and to take the most amount of profits before the trend reverses.

The Money Flow Index (MFI) is a momentum indicator that measures the inflow and outflow of money into a security over a specific period of time.

The MFI uses a currency price and volume to measure trading pressure. Because the MFI adds trading volume to the relative strength index (RSI), it’s sometimes referred to as volume-weighted RSI.

The value of the MFI is always between 0 and 100, and calculating it requires several steps. The developers of the MFI, Gene Quong, and Avrum Soudack, suggest using a 14-day period for calculations.

  • Step one is to calculate the typical price.
  • Second, the raw money flow is calculated.
  • The third step is to calculate the money flow ratio using the positive and negative money flows for the previous 14 days.

The MFI (Money Flow Index) is a unique indicator that combines momentum and volume with an RSI formula. MFI momentum generally favors the Bulls when the indicator is above 50 and the Bears when below 50.

Forex & Binary Options MFI Trading System is a trend following trading system that Based on the MFI (Money Flow Index), Bollinger Bands Stop indicators and Filter indicators for filters the trading signals of Bollinger Bands Stop.

These SEFC10 and Filter 1 indicators repaint but MFI and Bollinger Band Stop alert indicator not repaint.

  • Best Time Frames: 15 min, 30 min, 60 min, and higher
  • Recommended Currency Pairs: EURUSD, GBPUSD, USDJPY
  • MFI (Money Flow Index)
  • Bollinger Band Stop alert indicator
  • Mint Signal indicator
  • SEFC 10 indicator
  • Signal Trend
  • EMA line upward and above 50 level
  • Bollinger band stop alert indicator (buy arrow, green color)
  • SEFC10 has formed a support line
  • Filter 1 indicator, has green bars
  • Signal Trend green bars
  • EMA line upward and above 50 level
  • Bollinger band stop alert indicator (buy arrow, green color)
  • SEFC10 has formed a support line
  • Filter 1 indicator, has green bars
  • Signal Trend green bars

Using Money Flow Index Divergence Strategy

The MFI oscillator can be also be used to trade using divergences. The chart below shows the bullish and bearish divergences that are formed using the MFI oscillator and the buy/sell signals are taken accordingly.

Long positions can be taken when a bullish divergence is formed on the MFI with stops placed at the low and likewise, short positions can be taken when a bearish divergence is formed on the MFI with stops placed at the high.

Divergences are more easily spotted on the MFI as it also takes into account the volume which plays an important role.

While the setups are easy to spot, traders need to have enough practice in terms of spotting the divergences before they are able to trade with the MFI oscillator more effectively.

BBands Stop v1 – Индикатор для MetaTrader 4

автор: TrendLaboratory Ltd

BBands Stop v1 Индикатор.

MT4 Индикаторы Forex – Инструкции по загрузке

BBands Stop v1 – Индикатор для MetaTrader 4 является Metatrader 4 (MT4) Индикатор и суть форекс-индикатора заключается в преобразовании накопленных данных истории.

BBands Stop v1 – Индикатор для MetaTrader 4 предусматривает возможность обнаруживать различные особенности и закономерности в динамике цен, которые не видны невооруженным глазом.

На основании этой информации, трейдеры могут предполагать дальнейшее движение цены и скорректировать свою стратегию соответственно.

Рекомендуемый Форекс Metatrader 4 Торговая платформа:

  • Свободно $30 Для того, чтобы начать торговать Мгновенно
  • Бонус на депозит до $5,000
  • Безлимитная Программа лояльности
  • Награды наградами Forex брокер

Как установить BBands Stop v1 – Индикатор для MetaTrader 4.mq4?

  • Скачать BBands Stop v1 – Индикатор для MetaTrader 4.mq4
  • Копировать BBands Stop v1 – Индикатор для MetaTrader 4.mq4 вашего Metatrader каталога / эксперты / показатели /
  • Запуск или перезагрузить Metatrader 4 клиент
  • Выберите Диаграмма и Временной интервал, где вы хотите проверить свои индикаторы МТ4
  • Поиск “Пользовательские индикаторы” в вашем навигаторе основном осталось в Metatrader 4 клиент
  • Щелкните правой кнопкой мыши на BBands Stop v1 – Индикатор для MetaTrader 4.mq4
  • Присоединить к графику
  • Изменить настройки или нажмите кнопку ОК
  • Индикатор BBands Stop v1 – Индикатор для MetaTrader 4.mq4 доступна на вашем графике

Как удалить BBands Остановить v1 – Индикатор для MetaTrader 4.mq4 от вашей диаграммы Metatrader?

  • Выберите таблицу, где индикатор работает в вашем Metatrader 4 клиент
  • Щелкните правой кнопкой мыши на график
  • “список индикаторов”
  • Выберите индикатор и удалить

Нажмите здесь ниже, чтобы скачать:

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Options Broker 2020!
    Ideal for beginners!
    Free Demo Account + Free Trading Education!
    Get a Sign-up Bonus:

  • BINOMO
    BINOMO

    2nd place in the ranking!

Like this post? Please share to your friends:
All About Binary Options Trading
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: