Strategy Characteristics

📍 Timeframe: Any in the range M1-M5. With an increasing period of analysis, the accuracy of the signal an increasing.
📍 Trading Asset: Any currency pair. The main requirement is a fixed (2-3 points) spread and no hidden fees.
📍 Expiration: not less than 5-7 minute

Chart Setup

👉 Bollinger Bands (BB) reports the direction and volatility of the current trend, and the horizontal movement of the lines will show flat − in this case, it is better to stay out of the market, especially if the price moves in a narrow channel. When the range dramatically expands, you can use longer 10-15 minute binary signals and increase the transaction volume by 10-15%.

💡 The main advantage of Bollinger Bands as a channel indicator is the leading signals of a change in the state of the market (accumulation, distribution, termination) and confirmation of the truth or falsity of local breakdowns of significant support/resistance levels.

👉 The Stochastic Momentum Index (SMI) is an interesting interpretation of the popular Stochastic Oscillator. In the standard version, he calculates how close the current price is. In turn, an SMI shows how close is closer to the midpoint of the High / Low range and is thus more streamlined. The indicator is traded, like the usual Stochastic: exit from overbought/oversold, divergence.


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Trading signals

⬆️ CALL Option. The price goes beyond the middle line or upper border of the Bollinger then makes a reverse turn. Looking for the entry point in the area above the midline. The white SMI line breaks red from the bottom up and the SMI leaves the oversold zone (above -40).

⬇️ PUT Option. Price exit below the midline or lower Bollinger Boundary, followed by a turn-up. The entry point should be below the midline. The white line SMI breaks down red and SMI leaves the overbought zone (below the level of -40).

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