251# Binary Bands RSI
Reversal momentum system
RSI Connors with Bands reversal
Submit by Ron
Binary Bands RSI is a reversal momentum strategy designed for binary options but also good for intraday trading. The pourpose of this strategy is find the short reversal trend with RSI Connors. VZO Ma line and exponential moving averages into the bands.
Time frame 15 min or 30 min.
Currency pairs: EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CHF, NZ/USD, EUR/GBP.
Expiry time 3 candles.
Metatrader 4 indicators setting
Exponential moving average 7 period, close.
Exponential moving average 7 period, open.
Bollinger Bands 21 period and deviation 2.0.
Bollinger Bands 21 period and deviatio 2.1.
In sub window
Connors RSI emod (3, 2 , 30, 70).
VZO ma line (VZO 3 period, Ma line 12 period).
Trading Rules for Binary Bands RSI
Buy
When the price bounces or broken the lower band wait that the moving average 7 period open crosses upward the moving average 7 period close and the Connors RSI is above the VZO MA line.
Initial stop loss 15-25 pips below the entry point.
Profit target ratio 0.9:1 stop loss or middle band, but you can exit when the moving averages reversal.
Sell
When the price bounces or broken the upper band wait that the moving average 7 period open crosses downward the moving average 7 period close and the Connors RSI is above the VZO MA line.
Initial stop loss 15-25 pips above the entry point.
Profit target ratio 0.9:1 stop loss or middle band, but you can exit when the moving averages reversal.
In the pictures Binary Bands RSI in action.
Share your opinion, can help everyone to understand the forex strategy.
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