Date:Fri Nov 22 2024Tokyo:17:08Sydney:19:08New York:3:08London:8:08CET:9:08
BinaryOptions.net Forums› Binary Options Strategy
Good day traders,
I am going to express some thoughts and a review for a strategy I see lately used by some traders and it’s based on Bollinger Bands. I believe that all of you know or at least have heard about Bollinger Bands which created by John Bollinger.
This is the first chart of the day. It’s from USDJPY currency pair and I have only the Bollinger Bands with the blue color. You know the scenario, when the price hit the upper band we have a possible short signal and when the price hit the lower band we have a possible long signal. I have some arrows in this chart to show you what I am saying right now. In this chart I use 1 min timeframe. I see some guys to take 60 seconds trades based only on Bollinger Bands. Some of them use martingale, too. Where is the problem with this? I don’t find it solid and I am going to tell you why. In the above chart you can see some in the money signals in a ranging period of the market. In a period like this you can get some good signals. These guys take trades when the price hit the bands (calls for the low band and puts for the upper band) and use the martingale system if the first trade is out the money until they will go ITM. This is very very dangerous and I don’t recommend it. Look at the next chart.
It’s from the same currency pair but in this chart you can easily see this strong downtrend. If you get here some trades with the martingale system and the bands you are trading clearly against this strong trend and you will lose your money.
This chart is from the same currency pair with 5 minutes timeframe. I like Bollinger Bands but I like to use them with 5 min timeframe and longer expiry time because it’s more solid. And of course without martingale.
Kind Regards,
Kostasze
Can you trust Bollinger Bands?
kostasze
Posts: 227 ✭✭
Posts: 227 ✭✭
Good day traders,
I am going to express some thoughts and a review for a strategy I see lately used by some traders and it’s based on Bollinger Bands. I believe that all of you know or at least have heard about Bollinger Bands which created by John Bollinger.
This is the first chart of the day. It’s from USDJPY currency pair and I have only the Bollinger Bands with the blue color. You know the scenario, when the price hit the upper band we have a possible short signal and when the price hit the lower band we have a possible long signal. I have some arrows in this chart to show you what I am saying right now. In this chart I use 1 min timeframe. I see some guys to take 60 seconds trades based only on Bollinger Bands. Some of them use martingale, too. Where is the problem with this? I don’t find it solid and I am going to tell you why. In the above chart you can see some in the money signals in a ranging period of the market. In a period like this you can get some good signals. These guys take trades when the price hit the bands (calls for the low band and puts for the upper band) and use the martingale system if the first trade is out the money until they will go ITM. This is very very dangerous and I don’t recommend it. Look at the next chart.
It’s from the same currency pair but in this chart you can easily see this strong downtrend. If you get here some trades with the martingale system and the bands you are trading clearly against this strong trend and you will lose your money.
This chart is from the same currency pair with 5 minutes timeframe. I like Bollinger Bands but I like to use them with 5 min timeframe and longer expiry time because it’s more solid. And of course without martingale.
Kind Regards,
Kostasze
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