The BBAND trading strategy

BBAND is a 5-minute binary options trading strategy that helps determine the perfect position for entering a trade. The forecasting conditions appear on the chart rarely – once in 20-30 minutes, but this allows to reduce the number of unsuccessful deals to 1-2 out of 10. The strategy is suitable for beginners, because for its implementation you only need to set the schedule correctly and wait for favorable conditions. Professional traders can use the template as a basis for their own works.

Characteristics of the strategy:

  • Complexity: simple;
  • Yield: 90-100% of confirmed forecasts;
  • Expiration period: 5 minutes;
  • Additional indicators: not required;
  • Chart type: candle;
  • Suitable assets: currency pairs, cryptoassets.

To work on BBand, you do not need to build geometric models on the graph. The line between the entrance and exit of the candles on the 5-minute section of the graph can be made conditionally, but for convenience you can use graphic tools from Iqoption, which allow to draw lines directly on the quotes screen. This is convenient, because you do not have to use additional utilities like the program for taking screenshots with the editing function.

How the BBand strategy works

The template is based on the principle of trend fluctuations. If the price of the asset enters the 5-minute segment and leaves it at the same level, then in the next 5-minute cycle the quotes will go to the correction pool side. The correction pool is the direction in which the quotes stayed most of the time. If the pool was bullish, the next five or more minutes the price will decrease, and in the case if it was bearish – rise.

When to predict a fall

Example: the price of the USD / X currency pair at 15:00 was $ 1000. In the period from 15:01 to 15:04 there was a rise to $ 1000.50, but by 15:05 the price again fell to $ 1000. Correction was carried out in the direction of increasing prices, so this movement is called a bullish pool. Referring to the principle of trend fluctuations, after 15:05 the price should fall. As can be seen in the screenshot, during the two previous 5-minute cycles the level of the entrance and exit of the candles differs significantly from the segment marked by the arrow. Once the quotes were at the same level (although there was a tangible rise in the cycle body), a down trend began.


When to predict a growth

Example 2: The value of Y’s stock at 10:00 was $ 100. In the period from 10:00 to 10:03 the price fell to $ 99, but by the end of the 5-minute interval it was leveled to its original level. This situation is called a bearish pool, on the next cycle quotes should creep up.

To increase the accuracy of forecasts to the maximum, work only in a situation where the status of the candle at the entrance and exit from the interval will be the same. The status on the candle chart is displayed in red and green color. So favorable conditions appear extremely rarely, therefore, it makes sense to consider the same status if you trade for large amount. Deals of less than $ 100 can be carried out taking into account the error of 1-2 candles.

Graph settings

Change the chart type to candle. Initially, the zone chart is displayed in IQ Option. It is also possible to work on it, but it is less convenient and more difficult to calculate the error in the intervals. To switch to a candle chart, click on the last top icon and select it in the “chart type” tab. After this, scale the display field of quotes to 5-minute intervals. Move the cursor to the bottom of the graph (where the time intervals are displayed) and click “+” or “-” several times.


Use the Iqoption graphic tools

To draw a line between the beginning and end of the interval, open the toolbar and choose “Line”

Specify the color and thickness of the line.

Using the cursor, draw a line from the beginning to the end of the 5-minute interval. The line can be moved, deleted or edited.


When you cannot trade

You must enter and exit the cicle at the same level. A slight error of 1-2 candles is allowed. If you use less equal cycles, the accuracy of forecasts will decrease. If you agree to sacrifice the effectiveness of trade, use cycles with an error of 3-4 candles. So you increase the number of transactions, but reduce their accuracy. Practice on the demo account before changing the template conditions.

Use BBand as a stand-alone tool, complement the strategy with additional templates or check filters. Be careful in the experiments with intervals, since the maximum efficiency is shown in the 5-minute expiration periods.

NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future

GENERAL RISK WARNING

The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.

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