Bollinger Bands Strategy in Binary Options Market
This trading indicator is widely used to detect the volatility and oscillation amount of market price. The Bollinger Bands has a Channel that is developed by two bands; Upper and Lower Bands.
In some Bollinger Bands types, alongside of Upper and Lower Bands, we can add another Bands to separate the Bollinger Bands in three various areas.
The middle region shows neutral status while the Upper and Lower Areas indicate suitable spots to place orders considering other confirmations.
In Binary Options market, if price proceeds towards Upper and Lower Bands or regions then suitable positions to purchase Call/Put or other contracts appear.
Bollinger Bands Signal Types
This Binary Options Strategy is generated to show the probable reversal spots when market price bounces back toward Bollinger Bands Channel.
Regarding the effect of Middle Line of Bollinger Bands on market price direction, confirmation from Hidden Bullish or Bearish Divergence can develop a Binary Options signal to purchase a contract.
This Binary Options Strategy is generated to show the probable reversal spots when market price goes near Bollinger Bands Middle Line.
When price hit the Bollinger Band multiple times, if it passes the band and return inside the channel then it is probable to return toward the band again.