RSI-Trend Binary Options Trading Strategy

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RSI Crossover Entry Strategy for Trending Markets

The RSI is a versatile indicator, and can be used to provide entry signals during a trend. To get the signals a moving average is applied to the RSI. This is easily done on free charting platforms like freestockcharts.com. Just add the RSI to your chart, click on the dropdown menu next to “RSI” and select “Add Indicator.” From the list that comes up, pick “moving average.”

RSI Settings

The standard RSI setting is 14, although that is typically used on daily charts, so if you are trading a shorter time frame you need to do some experimenting. For the examples below I used an hourly chart with a 21-period RSI, along with a 10-period moving average of the RSI. This seemed to produce decent trade signals once the trend was established.

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RSI Trend Strategy Guidelines

To apply the strategy a trend must be in place. For an uptrend we are looking for overall higher swing highs and higher swing lows in price. For a downtrend we are looking for overall lower swing lows and lower swing highs in price.

  • Trades are only taken in the direction of the trend. For an uptrend only take longs. For a downtrend only take shorts (puts).
  • During a downtrend the RSI must move above 60 to indicate a pullback. When the RSI crosses back below its moving average (can be at any number, just as long as the RSI is or was above 60 recently) go short.
  • During an uptrend the RSI must move below 40 to indicate a pullback. When the RSI crosses back above its moving average (can be at any number, just as long as the RSI is or was below 40 recently) go long.
  • Give the price at least two or three bars (whatever time frame you are trading on) or more before considering an exit. This gives the price some time to move in your favor.

Figure 1 shows how this RSI entry strategy could be used in an uptrend.

Figure 1. RSI Buy Signal

The trend is up so we are only looking for buy signals. The RSI drops below 40 (horizontal yellow line on RSI) indicating a pullback. Once the RSI has dropped below 40 we buy the next time the RSI (red line) crosses above the moving average (white line).

Figure 2 shows how this RSI entry strategy could be used in a downtrend.

Figure 2. RSI Sell Signals

The EUR/USD is in a downtrend so only short (put) positions are considered. Even though the price is moving mostly sideways from the left to the middle to the chart, the overall trend is down. Therefore we can still take short positions as the downtrend is still in play.

When the RSI moves above 60 it indicates a pullback. Once the RSI has moved above 60 (yellow horizontal line) we go short the next time the RSI (red line) drops below its moving average (white line).

The 40 level during an uptrend, and the 60 level during a downtrend, act as trade filters. By waiting for the RSI to move beyond these levels we are entering the trade during a pullback in the direction of a larger trend. When the RSI crosses its moving average it signals that the trend is likely resuming.

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Final Word

This is only an entry method. If trading traditional markets place a stop loss above the recent high for short positions and below the recent low for long positions. A Fibonacci expansion tool could potentially be used to find target prices. If trading binaries you’ll need to isolate the proper expiry time by doing a bit of research on how long it takes for the price to typically move into the money.

Each pair or market may also work better with slightly different RSI settings. Once you find a trend, tinker with the settings slightly to find ones that work consistently with that pair, time frame and market.

10# Binary options strategy RSI and SFX MCL filtered by Trend Reversal

Binary options strategy One Touch RSI and SFX MCL filtered by Trend Reversal.

Stochastic indicator as Filter

Submit by Janus Trader 22/06/2020

This forex scalping system is also a good Binay options strategy One Touch.

Also In this Binary Options Strategy Stochastic indicator is a great filter.

Time Frame 5 min time expire 60 min.

Time Frame 15 min Time expire 180 min:

Time Frame 30 min Time wxpire 320 min.

Currency pairs major: (EUR/USD, GBP/USD, USD/CHF, USD/CAD, AUD/USD,).

RSI Indicator (5-period) with two moving averages 11 and 34 periods;

Pivot points Levels-

Trend Reversal indicator

Binary options strategy One Touch RSI and SFX MCL filtered by Trend Reversal

SFX MCL indicator line green >line blue

Wait crossing upward the RSI indicator, Moving Average of 17 and 34;

Trend Reversal indicator bars acqua;

Stochastic indicator crosses upward but is not in oversold Zone.

if the Stochastic indicator is in oversold Zone;(Stochastic as filter)

if the RSI indicator is >80;

SFX MCL indicator line green

Wait crossing downward the RSI indicator, Moving Average of 17 and 34;

Trend Reversal indicator bars red;

Stochastic indicator crosses downward but is not in overbougt Zone.

if the Stochastic indicator is in overbougt Zone;(Stochastic as filter)

if the RSI indicator is

Target One Touch points:

5 min Time Frame 15 pips or first Pivot Points Levels in the market direction;

15 min Time Frame 18 pips or first Pivot Point Levels in the market direction;

30 min Time frame 22 pips or first or secod Pivot Points Levels in the market direction.

This Options Binary Strategy High/Low have the same rules One Touch.

Binary options strategy RSI and SFX MCL filtered by Trend Reversal free download

Share your opinion, can help everyone to understand the forex strategy .

42# RSI and Stochastic Binary Options Strategy

RSI and Stochastic Oscillator Binary Options Strategy multi time frame High/Low

Submit by FreddyFX 17/01/2020

RSI and Stochastic Oscillator Binary Options Strategy multi time frame High/Low is a trend momentum trading system.

Markets:Forex (EUR/USD, USD/JPY, AUD/USD, USD/CHF, GBP/JPY, EUR/JPY,

Indicies (S&P 500, Nasdaq, DAX, FTSE), Metals (Gold and Silver).

Time Frame 15min and 1 min.

Expires time 10 min max 15 min.

Open 15 minute candlestick chart, add the following indicators:

RSI (4 period, levels 25 an 75).

Stochastic (with the default settings of 5,3,3)

Open also 1 minte chart with the same indicators.

Rules for RSI and Stochastic Binary Options Strategy

trade only in the direction of the trend-momentum.

On the 15 min chart the RSI closing below 25 level

open the 1 minute chart and look at the stochastic indicator if it’s crossing upward, place your trade and buy call option.

On the 15 min chart the RSI closing above 75 level

open the 1 minute chart and look at the stochastic indicator if it’s crossing downward, place your trade and buy put option.

This strategy is also good for scalping in the forex market on major.

Target price 7-10 pips depends by currency pair or the Fibonacci levels.

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