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Binary Options Review – RSI Trading Strategy (Relative Strength Index) – Binary Options

Hi everybody, this is Leon trader. I missed you guys and I am glad that you all are doing good. Today, I wanted to make a short overview of the IQ option platform. This is one of the two platforms that I do trade on a regular daily basis and I trade expertoption and IQ option, but I didn’t make any official introduction to it. I just wanted to make a short review of the features that it does have because there are so many brokers out there in the market.

I can’t say that one of them is like simply the best out of all. Every single broker has its cons and pros. What I like in this particular one is that it has a really nice layout, the way the graphs are plotted. I do like the feature where you can use two graphs or multiple graphs, and follow the – of course, this doesn’t look really useful. It’s going to be really hard to analyze anything in this case. If you have the two horizontal graphs, you can either follow two of the currency pairs or you can set up some single asset twice and just follow it in the longer and shorter track timeframe in order to see the trend that is going on, and also to be able to trade it on the short term. Also, there is a leaderboard with some really crazy numbers. You see those guys making like over 1 million and this is just in a week. My personal goal is to find myself in this list. I think that this is kind of crazy, and those guys are doing a really, really good job.

I do hope I will be able to see myself among those names. What else is here? There are the tournaments – really good thing. I play them sometimes. This one that is currently active has the price pool of 50,000 bucks. It doesn’t mean that one single person gets those 50,000 bucks. This money is distributed between – I don’t remember exactly, like 20 or 30 traders that are first in the list. That’s why it’s not that hard to get there, trust me. I’m going to make a video about that, how I use my own strategy trading in the tournaments and binary options. The market news can help you make some forecast about your trades, and video tutorials – really nice explanation of the different drawing tools and indicators.

I’m not going to go through all of them, but take your time to watch the videos about the ones that you are using or interested in. These are really helpful. This is the area graph that I sometimes use to trade, but recently I mostly use the candlesticks one with the one minute periods. And also, another thing that I wanted to talk about is the RSI indicator. I think this is one of the most important. It’s not the most important indicator of them all. It stands for relative strength index. I think that there is no trader in this world that didn’t look at it at least once or tried to integrate it in the analysis. The RSI is offered by all trading platforms, either under the oscillator’s category or under the momentum indicators. The default period to consider is 14. It means that the indicator is taking into account the less 14 candles and interpret the closing levels on it. Based on that, the data is plotted. The result is interpreted based on the 70 and 30 levels. These levels are the standard levels.

Sometimes I do switch to 75 and 25 just to be more on the safe side. If you want your graph to be more sensitive, you can go for like lower than 14. If you go higher than 14, then your graph will be flat. I’m just going to use the default settings here, and whenever you choose any of the indicators, you can also watch the video explaining its details. There are the screenshots showing how it’s going to look on your graph. When you apply, it’s going to show up here at the bottom. There are two levels, 70 and 30. The 70 level represents the overbought conditions, and 30 represents the oversold conditions. In our case here, because we trade binary options, the 70 area should be a nice place to buy put options. The 30 level should be the area to buy call options. Of course, your question will be: is it working all the time? The answer is not. It’s not working all the time, but it is working most of the times when the consolidation pattern is identified. In order to trade this one successfully, go on the bigger time frames, identify the triangle or a range, and then trade it on the lower time frames with the RSI.

I’m also going to add to the Bollinger bands indicator. I do see that there is some downward trend going on, so let me also add one more. It’s called average directional movement index. It appeared here at the bottom. There are two lines. There are three of them, but two of them indicate the trend. The green line means – when the green line is up, it means that the upward trend is happening right now. When the red line is higher than the green line, it means that the downward trend is going on. I’m trading based on the Bollinger bands indicator. It works better when the market is in the range, especially in conjunction with the RSI. As you see, it’s oversold during like the recent period of time, so I do think that it’s not too safe for me personally based on my strategy that I use.

It’s not too safe to trade this one at the moment. Let’s check the other assets. This one is looking – it’s trending again here, but I do see some nice opportunity on trading this asset. Right now, we are in the oversold conditions. What I’m going to do is just wait until we get to the upper Bollinger band and make a trade based on that. Let’s switch to the next minute, and let’s also check out the history, how it was behaving previously. I explained it in my previous videos, using the Bollinger bands on the more or less trendless market. Whenever you see the candle touching the lower band, it is a good moment to go for a call stake.

We see there is a breach over here. The next one would be definitely a win. Right here, we would – there is another breach, and making the call stake here would be a win again. At this point, we would win if we make the stake at this point, but in overall the candle closed still outside the lower Bollinger bands. We might also lose this one, but I would go for a Martingale based on the previous trades. If I lose this one, I would just double my stake and make another stake. If I make it in this point, I would win. Even in case we lose two of them and even the third one, we would still win. Also here, another breach – lose, lose, win. Another breach, win.

Another breach, lose, lose, win. Even if losing the trade when the Bollinger band is breached, it’s still a good moment to enter the market, and to Martingale anyway. As you can see, we are in the highly oversold conditions here. We have the upwards trend. I think shortly we might reach a good moment for the put stake. I am going to wait a bit more. RSI shows 85%. This is pretty high. Let’s just wait until it touches the upper band and enter the market. Another candle, here we go. There was a touch. Let’s see how it’s going to behave for the next 45 seconds. It continues to grow.

That’s why there is a chance that we can lose this one, but there is another option that I like here is that whenever you make a state and you understand that you made a bad decision, you can go ahead and sell it. Right now, we – you can sell it within the first several seconds I think, because right now it doesn’t give us this option, but still I think it is a really nice feature. We won, ladies and gentlemen. $74 profit. Our analysis and prediction was true. Let’s wait for another good moment. See, we’re still in the oversold conditions here and the market is trending upwards.

I was trading against the trade, but it was a good decision. Let’s check the other ones. This one might be good as well. Let’s wait until we breach the lower band and go for a call stake. Why I thought this was a good decision over here, because RSI didn’t show us the oversold conditions, but on the ADX graph, we can see that the market is trending upwards. Even if we get to know that this was a bad decision, we still can sell this option and we can lose. You see that value is always changing, we can lose like 50, 60% depending on where the graph is at this moment. This feature disappeared because we are close to the expiration.

It looks like we might lose this one, so I will prepare to Martingale. I multiply my stake by two. Yeah, we lost this one. I’m applying the Martingale strategy. If my stake lost, I do multiply it by two. In case when my next stake wins, I am going to get my money back and even make some slight profit on top of that. According to RSI, we were not in that good position, but the breach of the Bollinger band was pretty significant. Let’s wait for another 10 seconds and let’s see how it’s working out.

Three, two, one, and perfect. We just won. As you see, there was a breach. We made the trade, it didn’t work out. Since there is no some significant trend. It seems then, I do think that it was pretty safe to go for a Martingale, even like two or three times because based on these three here, it would be safe. There are reversals happening within the two or three trades after the breach of the Bollinger bands. This is it for today. I know that the profit wasn’t too high. It was because I withdrew my money and I wanted to have enough money on the balance in order to apply Martingale.

I’m going to switch to some higher stakes in my next videos, and I will try to explain something new based on the way I trade. It was great seeing you all. Please subscribe to my channel. I will try to make the videos more often. I wish you all a lot of money. I wish you all the successful trades. See you shortly. Bye. .

Binary Options Review – RSI Trading Strategy (Relative Strength Index) – Binary Options
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While trading binary options on binary options or other binary options platforms, one of the most important, if not the most important indicator of them all is the Relative Strength Index (or the RSI as it is known) and basically probably there is no trader in this world that didn’t look at it at least once or tried to integrate it in the analysis while trading on binary options.

The RSI (relative strength index) is offered by all trading platforms either under the oscillators category or under the momentum indicators and the default RSI period to consider is the 14 period. This means the indicator is taking the last 14 candles and interpret the closing levels on it and based on that data is plotted.

Like any oscillator in binary options, the RSI or relative strength index is designed to show extreme levels, namely overbought and oversold levels, but it is important to note that RSI trading strategy strategy works best on binary options with markets that are consolidating, namely markets that are in a range. To find such areas in binary options, one should trade patterns that are most likely to be followed by ranging conditions but also it is possible to identify ranges when looking at the trading session you are interested in trading on binary options. For example, in terms of Elliott Waves Theory, an impulsive move has two corrective waves (ranges) that are following impulsive moves of a lower binary options degree.

Another thing to consider when looking for RSI (relative strength index) ranges is to trade binary options in Asian session as in the Asian session markets are not moving much due to lack of liquidity and the fact that European and North American sessions are more price action packed. Therefore, trying to identify overbought and oversold levels based on a range might work very well as the RSI (relative strength index) is giving these levels for finding the perfect striking price for your option on binary options.

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Risk Warning: Please note that binary option trading entails substantial risk of loss, and may not be suitable to everyone. Trading could lead to loss of your invested capital.

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