publish2017-05-06 12:06 pm

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How to Setup

expiration time
Expiration Time Step

Expiration Time

Please setup expiration time on 1 minute. If you dont have IQ Option account please click HERE to open free demo account!

iq option“General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.”

chart type
Candlestics Step

Chart Setup

Please setup chart on Candlestics chart!

Candlestics Period Step

Candlestics

Please setup candlestics period on 1M

Bollinger Bands Step

Indicators

Please go to Indicators and select Bollinger Bands Indicator

bollinger bands setup
Bollinger Bands Setup Step

Bollinger Bands

Please setup Bollinger Bands with :

Period: 14

Duration: 2.0

SMA
Moving Avarage Step

Indicators

Please select another indicator Moving Avarage (MA)

sma setup
SMA Setup Step

Moving Avarage

Please setup Moving Avarage with :

Period: 100

Type: SMA

color: blue

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Bollinger Bands

What are Bollinger Bands?

Bollinger bands are an analytical tool created by John Bollinger in 1980, which uses the moving average to form a market volatility indicator. These bands consist of the graphical representation of three lines on a price chart. The middle line and two parallel lines called the Bollinger bands are similar in function to the resistance and support lines, but they are obtained by adding and subtracting its standard deviation. These bands can form patterns that are recognizable by traders and can anticipate the future movement direction of an asset price with great certitude and accuracy.

Understanding Bollinger Bands

  • Bollinger bands are built with three lines called bands

1.The middle band (middle line) is the simple moving average, that can be set at any period. However, it is usually set at 20 periods.

2.The superior outer band (upper line) is two standards deviation above the simple moving average. This uses the same periods setting as the middle band.

3.The inferior outer band (lower line) is two standard deviation below the simple moving average.  This uses the same period setting for the middle band.

  • Any change in the periods used to calculate the moving averages has to be made to the periods used to calculate the standard deviation of each band.
  • W-shaped patterns are called W-bottoms, which represent a resistance from the asset price to fall and this pattern is present before a price-increasing trend. Therefore, any of the 16 recognizable W-shaped patterns are clear indications to buy because prices are going to increase substantially.The asset is oversold
  • M-shaped patterns are called M-tops, they are more complicated to fully identify than W-bottom. M-tops may be interpreted as a resistance of the asset price to surge or increase, this M-patterns are foreshadowed of a downtrend and a significant asset price reduction. Therefore, their signals are to sell before the prices go down. (trader has to pay especial attention to the 16 most common M-patterns because they can be confused with different shoulder or double hat pattern, which different market meaning and price implications. The asset is overbought
  • Contraction is when the asset price is very stable and it does not change significantly for the studied period. The Bollinger bands are very close to each other.
  • Expansion is when the asset price experiments change and it fluctuates. The price becomes volatile. During this volatile period the Bollinger bands growth apart.

Bollinger bands were developed to identify the 16 different W or M patterns as early as possible and give an edge to traders to make a move as early as possible and get bigger profits. The ability to anticipate price moment is very reliable and is based on these patterns recognition. The Bollinger Bands do not predict the future. They only recognized a recorded pattern, which is frequently repeated over time.

Most important key points to use Bollinger bands

  • Price is the most important information for any market assessment. Bollinger bands consider that price will return to its average price over time. This is represented by the middle band and this return to its average price is called Bollinger Bounced.
  • When the bands have been contracting, a breakout could be imminent.
  1. If the prices are continuously above the average price, it is possible to identify an uptrend pattern. The asset price will increase
  2. If the prices are continuously below the average price, it is possible to identify a downtrend pattern. The asset price will decreas

SMA 100

Simple Moving Avarage also know as SMA with period of 100 will help to recognize trend direction.

Up Trend – When SMA line is moving under candlestics chart.

Down Trend – When SMA line is moving upper candlestics chart

Bollinger Bands + SMA 60 seconds Binary Options Indicator – Trading Pattern

To use this strategy you must have IQ Option account. If you still dont have IQ Option account, please register HERE for Free!!!

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“General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.”

Open PUT Option

When candlestic are crossing lower or upper bollinger bands lines and the SMA line moves UPPER the candlestics chart that mean you must invest PUT.

If we do a mistake, we have to use martingale money management to cover loss.

If you still dont know what is martingale please click HERE!

Some Examples of PUT Options

Bollinger bands put option

Open CALL Option

When candlestic are crossing lower or upper bollinger bands lines and the SMA line moves UNDER the candlestics chart that mean you must invest CALL.

If we do a mistake, we have to use martingale money management to cover loss.

If you still dont know what is martingale please click HERE!

Bollinger bands call option

“Your capital may be at risk. This material is not investment advice.”

Enjoy Trading!

 

Video Tutorial

Bollinger Bands + SMA 60s Binary Options Indicator – Trading Pattern

Learn how to trade by using Bollinger Bands and SMA trend trading indicator. Full video explanation including setup and trade.

Enjoy!

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