RSI Strategies for Binary Options

As you know, the main task of an options trader is to correctly determine the level of quotes reversal and correctly predict the vector of their further movement. This algorithm of working with binary options allows using many simple and effective approaches to market forecasting. Such approaches include trading systems based on graphical candlestick patterns as well as indicator trading strategies. Today we will introduce you to several classic ways to use the indicator RSI в trading strategiesThe most accurate forecasts in the concluded deals can be formed thanks to which it is possible to achieve the maximum performance indicators in option trading.

So, RSI indicator, known as the relative strength indexThe market is essentially a technical analyzer of the market, which is displayed with a dynamic line on the chart of the asset. This line indicates the direction of the trend, as well as levels in which the market is oversold or overbought:

The format of the RSI indicator in conjunction with the list of indicators taken into account allows you to build on the basis of this technical means a number of highly accurate trading strategies. It is such strategies that allow to achieve impressive profitability indicators in trading on the futures market.

RSI trading strategies – conditions of use

The profitability and efficiency of all trading strategies based on the RSI indicator depends not only on the parameters with which it is used, but also on the technical potential of the broker trading platform, chosen for trading.

In this regard, the optimal parameters of the trading terminal are:

• Good selection of assets
• Minimum trading conditions
• Indicator set and the presence of RSI in it
• Highly accurate quotes
• Extended range of expiry dates
• High yield options

Guided by this list of requirements, we chose a broker, the parameters of which correspond to each item – it is Binarium brokerwhich is a reliable European company that provides traders with the following set of services:

• Minimum trading conditions – capital from 5$, option from 1$
• Arsenal trading assets – 80 titles
• Technical indicators – a set of professional analysis tools, including RSI
• High option payouts – returns up to 90%
• Expanded expiry limits – minimum from 60 seconds, maximum from 24 hours
• Accurate stock quotes – from a reliable supplier.

Pay attention to other terminals of reliable Binary options brokersFor example, INTRADE.BAR or Stars Binary.

Classic RSI strategy

This trading strategy works on the RSI indicator with its classic settings, when the extreme levels are at 70 and 30. Such parameters of the technical tool are informative enough for the trader to form on the basis of trading signal The right forecast in the concluded deal and choose a profitable moment to enter the market.

The signals of the classic indicator RSI is as follows – the transaction occurs at a reversal trend line of the analyzer in one of the extreme zones of the market. Therefore, if the muving turns near the level of 70 – the deal is DOWN, and if near the level of 30 – the deal is UP:

Thanks to this strategy can end with a profit of about 85% trade bets.

Trending Strategy RSI

Due to the unique format and construction principle of the RSI muwings, you can use the method of identifying price reversals when the price rebounds from the trend levels to predict the market. However, in this case the trend levels are used, which are built not by the price of the asset itself, but by the muwings of the technical means. Trading signal, in this regard, also has a simple format of display – first, you need to determine the direction of the trend, which builds a moving RSI, along with resistance and support levels (for this purpose the classical way is used – the minimum or maximum of the muving is connected). And the deals are made when the muving breaks the trend level:

This trading strategy allows you to get a profit in 90% contracts, because it is the easiest and most effective way to identify trend reversals.

Also, here are the strategies based on the RSI indicator, which were published earlier in our Blog:

• “RSI-Trend”
• “RSI Divergence”
• “Scalping on RSI”
• “EMA + RSI”