Fast RSI trading strategy with double bands
The Fast RSI with Double Bands trading strategy is a powerful tool for binary options trading, scalping and live trading on the currency market. Although it uses non-standard indicators, this strategy can be effective for both experienced traders and beginners.
Input parameters:
- Currency pairs: any
- Expiry time: 3-5 candles
- Time frame (for scalping and live trading): M1-M15
- Bidding time: any
- Risk management: risk management with a defined stop loss
Indicators used:
- Bollinger Bands (20, 2.0)
- Bollinger Bands (20, 2.5 - for M5 and M15; 20, 3.0 - for M1)
- Support and resistance line with zone S/R
- Connors RSI mod (period 3, up dawn period 2, ROC 100 period)
- Connors RSI (period 3, up dawn period 2, ROC 100 period)
- T3 RSI (2, 2, 0.618)
- T3 RSI (4, 4, 0.618)
- T3 RSI (8, 8, 0.618)
Rules for opening buy trades (Call option):
- The price pushed off the lower boundary of the outer Bollinger Bands and crossed the lower boundary of the inner Bollinger Bands from bottom to top.
- The RSI indicator left the oversold zone and crossed the green line from bottom to top.
Rules for opening trades for sale (Put option):
- Price pushed off the upper boundary of the outer Bollinger Bands and crossed the upper boundary of the inner Bollinger Bands from top to bottom.
- The RSI indicator came out of the overbought zone and crossed the green line from top to bottom.
Setting stop loss and take profit in the foreign exchange market:
- Stop loss is set at a distance of 3 pips from the upper or lower boundary of the outer Bollinger Bands.
- Take profit can be set near the middle line of the Bollinger Bands or at one of the support or resistance levels.
Before using this trading strategy on a live account, it is recommended to thoroughly test it on a demo account or in the strategy tester of the MT4 terminal.