Overlapped Divergences Strategy - Binary Options Trading Signals
Title
Overlapped Divergences Strategy in Binary Options Market
Element(s)
  • Classic Pattern
  • Candlestick(Engulfing, Hammer, Piercing Line, Tweezer …)
  • Awesome Oscillator
  • RSI (8)

Call signal

On a downward trend, after price proceeded toward 1st valley then it returned toward top and developed 1st peak. Price bounced back toward bottom and formed 2nd valley.

Subsequently, price followed an uptrend and reached 2nd peak, however, it decreased again and moved toward bottom and 3rd valley was formed.

Considering that 2 Convergences are detected on 3 consecutive valleys by applying (RSI/Stochastic), a Call signal is generated. On the 3rd valley, a powerful reversal Bullish Candlestick pattern developed as confirmation that indicates Entry Price for given Call signal.

If price reaches Entry Price, given signal will become active. In case that traders cannot place the Call order on given contract when price passes the Entry Price, then given Call signal becomes invalid.

On a special occasion, after price crosses the Entry Price if it bounces back toward bottom and proceeds lower than Entry Price before ordering Call contract becomes unavailable then given Call signal remains valid and reliable.

  • Entry Price: High Price of last candlestick
  • Target Price: length of last candlestick over Entry Price

Put signal

On an upward trend, after price proceeded toward 1st peak then it returned toward bottom and developed 1st valley. Price bounced back toward top and formed 2nd peak.

Subsequently, price followed a downtrend and reached 2nd valley, however, it increased again and moved toward top and 3rd peak was formed.

Considering that 2 Divergences are detected on 3 consecutive peaks by applying (RSI/Stochastic), a Put signal is generated. On the 3rd peak, a powerful reversal Bearish Candlestick pattern developed as confirmation that indicates Entry price for given Put signal.

If price reaches Entry Price, given signal will become active. In case that traders cannot place the Put order on given contract when price passes the Entry Price, then given Put signal becomes invalid.

On a special occasion, after price crosses the Entry Price if it bounces back toward top and proceeds higher than Entry Price before ordering Put contract becomes unavailable then given Put signal remains valid and reliable.

  • Entry Price: Low Price of last candlestick
  • Target Price: Length of last candlestick below Entry Price

Overlapped Divergences Strategy

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