publish2017-03-18 11:09 am

How to Setup

binary option expiration time
Expiration Time Step

Expiration Time

Please select expiration time as 1 minute. If you dont have IQ Option account yet than you can register HERE!

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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.”

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Chart Type Step

Chart Type

Please change chart type for candlestics

binary option candlestics period
Chart Period Step

Chart Period

Please select candlesticks chart period as 10s

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Indicators Step

Indicators

Open an indicator list and select RSI

How to setup RSI
Indicators Settings Step

Indicator Settings

Please setup RSI indicator as:

Period: 18

Overbought: 70

Oversold: 25

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About RSI indicator

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“Binary Options are availiable only for Non-EU Traders”

The Relative Strength Index (RSI) is a momentum oscillator developed by J. Welles Wilder. It was first introduced to security traders and the public in 1978 after New Concepts in Technical Trading Systems book was published. The RSI assigns a numerical value from zero to 100; the assigned value helps traders to understand the market, identify the general trend, and estimate the likelihood that a commodity or share price will increase or decrease in a period.  Basically, this oscillator measures the magnitude and velocity of the price movements. According to Wilder “In a nutshell, it measures the current strength and weakness of a particular market often in advance of the move” (Wilder, 2013)

The Relative Strength Index (RSI) applies a mathematical analysis to compare the magnitude of average gains and losses over a 14 time period. The 14-time period usually is 14 days (It can be used to analyze any 14 periods) It uses the closing price for those dates in order to identify overbought and oversold conditions for the studied commodity or share. This index analyzes the ratio of up closes compare to down closes recorded. The formula for calculating it is:

Where RS is obtained by dividing the average gain of up during the specified 14 time periods by Average loss of down during the specified 14 time periods

RSI = 100 – 100/1+RS

 

Understanding Relative Strength Index (RSI)

  • Every time the RSI has a value equal or greater than 70, it’s considered to be overbought.
  • Every time the RSI has a value equal or lower than 30, it’s considered to be oversold.
  • During trending periods e.g. bull market or bear market this index can be maintained in an overbought or oversold state.
  • When the RSI is equal or greater than 70 “overbought”, the market can experience an imminent reversal and the price of it decreases.
  • When the RSI is equal or lower than 30 “oversold”, the market can experience and imminent reversal and the price of it increases.
  • Parameters can be adjusted; the period can be reduced to 10 to increase sensitivity or increased to 20 to reduce sensitivity. Raising overbought index value to 80 or lowering oversold to 20 can also be done.
  • The RSI can be presented on a graph and add the price chart below or above it allows having a better market evaluation and future price estimation.
  • The slope of RSI is directly proportional to the velocity of a change in the trend.
  • The magnitude of the move is represented by the distance traveled by the RSI.

Relative Strength Index (RSI) as a trading tool

  • It helps to establish the possible future trend for a share price and most important it helps to identify divergence signals and a potential reversal point when a directional momentum is not confirmed with the price.
  • RSI reduces speculation and guessing during the trading time. This index has stood the test of time, analyzes it can increases substantially your trading profits and reduces or even eliminate any trading loss.
  • Bearish divergences establish the best time to sell a share or commodity.
  • Bullish divergences establish the best time to buy a share or commodity.

Now About our Indicator

For our trading pattern we must use IQ Option as broker, if you dont have IQ Option account, open HERE for free. You will get free demo account with unlimited of refilling!

“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.”

Our trading pattern is based on 60s expiration time and candlestics of period 10s. This strategy its very simple and you dont need to have any high skills for using it!

Open Call Option:

When RSI cross the oversold line (Red line) we need to open call option. Se examples here:

RSI indicator Call Option

 

Invest Put Option:

When RSI line crossing upper line (Green line) you need to open Put Option. See examples here:

RSI Put Option

 

Money Managment:

If you do a mistake and loose the bet, you need to immediately reinvest using Martingale. That means your next bet must to be 2,5 times bigger than previous one, and you need to invest in same dirction as previous option.

For Example:

If you invest 10$ on PUT, and you lost it, than your next bet should be 25$ on PUT, and if you loose again than you invest 62,5$ for PUT.

With Martingale Strategy (Trading Pattern) your last bet always cover previous loses and give you profit.

Read more about Money Managment HERE

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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.”

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

Enjoy Trading !

Video Tutorial

RSI 60 seconds Binary Options Indicator Trading Pattern

Learn how to trade binary options by using RSI Indicator. Full video tutorial how to setup indicator and trade.

Enjoy!

 

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1 User Reviews

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