The Bollinger Bands Strategy in Binary or Forex Options is entirely sufficient for a temporality of 5 minutes and 15 minutes for significant temporalities we must try a bit more to find the deviation and moving average that we want to use. Bollinger Bands consists of a moving average in the center and two bands with a standard deviation of 2 “Recommended” that indicates the resistance or support “ceiling or floor” of the quote that we are negotiating. The Bands were created by Mr. John Bollinger hence their name and are used mainly when we have a market in range, i.e., when the market is generally low volume or is trapped in an intense volatility, this means that when we find days, where the market is going to move actively, is not advisable to use this strategy with Bollinger Bands in Binary Options or forex.
How to use the Bollinger Bands Strategy
The first thing we need is to have an advanced graphics platform, even though the most advisable thing is to download MetaTrader 4 in a broker that has several assets. Once we have the mt4, we must go to indicators and put Bollinger Bands “Bands of Bolinger” we will set a predefined parameter that at the moment we are not going to touch.
Now that we have the indicator on the chart we are going to wait for the price to be outside the upper or lower band, once we find it outside the band, we will wait for a candle or two candles to be seen again within the band. It can be a bit confusing to understand at first glance, but it really is straightforward, the first thing we must realize is that the bands are going to indicate that a financial product has been overbought or overinvested, once we know this, investors are expected to do the opposite, best binary software can do this, but we ask ourselves when we know that investors are going to carry out operations when they see occasions of overbought and oversold? Because the way is to wait for a confirmation which means that when a candle contrary “if all are green we should expect a red.