The Bollinger Bands, Fibonacci based binary options trading strategy works best for placing 60 second binary options trades. It makes use of Bollinger bands and automatic Fibonacci drawing tool.
Who is this strategy ideal for?
This 60 second strategy is a rather simple set up despite the complexity involved. The use of only the Bollinger band indicator, which is a trend/volatility indicator alongside the Fibonacci tool ensures that trades are placed in the direction of the trend on a retracement.
Bollinger Band-Fibonacci binary strategy Indicators
- Bollinger Bands (20,2)
- 1-2-3 Pattern Indicator
- Chart Time frame: 1 minute
Downoad (1-2-3 Pattern MTF v3.1.ex4, 1-2-3-binary_scalper(ProfitFcom).tpl, 123Alarms.ex4)
Signals Bollinger Band-Fibonacci system
For Put Option
- Visually scan the Bollinger bands. If it is sloping downwards, then the trend is a down trend
- Wait for price to hit the 1.618 Fib level. It doesn’t matter if price closes at 1.618% or not
- Place a Put option on the next candle with a 60 second expiry
For Call Option
- Visually scan the Bollinger bands. If it is sloping upwards, then the trend is an uptrend
- Wait for price to hit the 1.618 Fib level
- Place a Call option on the next candle with a 60 second expiry
Bollinger Band-Fibonacci system &8211; Examples
- The Bollinger band in the above chart is pointing downwards, so the trend is down and we look for ‘Put Options’
- The 1-2-3 Pattern indicator plots the Fib levels and the candlestick denoted by the ‘Blue vertical line’ shows price hitting 1.618% Fib level
- A put option is placed immediately after the candle closes, resulting in a profit
- The Bollinger band in the above chart was flat before turning upwards, indicating a change of trend so we look for ‘Call Options’
- The 1-2-3 Pattern indicator plots the fib levels and we place a 60 second expiry contract as soon as price crosses the 1.618% Fib level
- The call option placed results in a profit
Strategy Tweaks and Tricks
The strategy looks simple and robust on its own and therefore no further tweaks are recommended.
By combining the Bollinger bands for gauging the trend and momentum, and using the 1-2-3 pattern indicator to identify retracement, this is a rather safe strategy to trade. However, because we trade based off 1 minute charts, it is important choose most trusted binary brokers that trades are executed quickly.
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