Many traders combine the power of the Relative Strength Index and Bollinger Bands to build the successful and reliable trading strategy that works great for turbo options. Turbo options are not easy, but they are very profitable. As you know in binary trading, the profit does not depend on the number of points, but it depends on the trend direction.
How to configure the terminal and indicators
Turbo options work best for highly volatile assets such as currency pairs or cryptocurrencies. We recommend building your strategy for turbo options on the Relative Strength Index and Bollinger Bands. Start with the 60 second time frame and use Japanese candles on the chart. You will find all necessary tools and indicators in Quotex.
The setup for Bollinger Bands is a period of 20 with a deviation of 2.
Setting the Relative Strength Index requires more attention. The default 14 candle period RSI settings are for medium term trading and you need to change it if you want to trade turbo options.
The setting for RSI is a period of 7. Also change the default RSI levels to 20 and 80.
Overbought and oversold levels give signals for buying a contract, so when we change the period to 7 and leave the standard 30 and 70 zones, the RSI gives many false signals in response to market noise.
How to trade options with RSI and BB in 60 seconds?
Your strategy for turbo options should combine the strengths of RSI and BB. Don't believe posts from people who claim good results using just the RSI. Is it an anomaly or a cherry pick. Here's how the strategy works:
CALL when the RSI signal line breaks out of the oversold zone. At the same time, a breakout of the lower level should be observed on Bollinger Bands.
PUT when the Relative Strength Index signal line exits the overbought zone. BB shows a breakout of the upper level of the channel.
For turbo options, the expiry period must be at least 2 but not more than 4 minutes.
As you can see, the idea is simple. Buy if the widening variable remains within the Bollinger and the bands widening is below a pre-specified margin, as well as the RSI reaching the oversold zone. Sell if the widening variable remains inside the Bollinger and the bands widening is below a pre-specified margin, as well as the RSI reaching the overbought zone.
In conclusion, remember that RSI depends on the current state of the market. If it's varying, it's likely to give you good signals. If it's on the rise, it's better to use other tools.