I have just recently revised this indicator alert for public release. This is for the 60sec Bollinger Band break Binary Option traders. This indicator alert is a variation of one found in a well known Broker's marketing videos. It uses Bollinger bands, RSI and moving averages. Included is a pre-warning alert condition. The strategy and settings are designed for 1min charts and Binary Options, but it could work for up to 15 min charts. The default settings are BB(14,2) and RSI(11) with 75/25 Levels boundaries. To be a valid trade the RSI needs to be within 75/25 channel. The optional Market direction filter is enabled by default and is calculated by two EMA (200 and 50):
When 200ema rising and 50ema above 200ema then market going up.
When 200ema falling and 50ema below 200ema then market going down.
A potential Bollinger Break reversal trades identified by shapes: The purple diamond is the pre-warning purple alert and the green and red pointers with the PUT/CALL labels are the trade alerts. Make Binary Option trade in specified direction 60sec (or can also use 120sec trade without Martingale).
* Notes and Hints *
The original videos specified a Martingale money management strategy, be careful using this management. When I use Martingale I recommend go to 3 levels: 10, 25, 65 if no win at 65 stop trading this alert and start next alert back at 10, you should recovery loss by future wins given you are able to get a reasonable ITM rate with this strategy. Alternatively instead of using Martingale use 120sec Binary Option trade.
Be wary of break alerts on a steep Bollinger, they tend to keep running away for awhile, especially if steep on both sides of Bollinger channel.
As with most of this style of indicator the alert conditions will redraw until the candle is closed. For me this is okay, as it is an Alert is only to a potential trade and final decision to trade is made by me.
You need to practise this and be aware of market news, sessions boundaries, slow trading periods etc. Plan your periods of when you should trade, I prefer Asian session before lunch and London sessions.
- Be wary of multiple alerts on the same pair one minute to the next, this is an indication of a Bollinger Band run away.
- If you find 60sec action too fast, try it at 3min or 5min charts.
- Don't trade too many pairs at once, as the action needs the correct entry point. Start with one or two pairs and progress to a maximum of four pairs. Stick to the major currency pairs.
- Try and make the trade a few seconds before the end of the 60sec time frame.
- Trade for only short periods at a time, 30mins to 1hour. You only need 4 or 5 good trades a day don't risk your daily profits.
- Make sure you practise in DEMO first for at least 200 trades, to get a feel for the chart price action and the chosen currency pairs. Don't trade with real money unless your are consistently making profits in DEMO.
jaythetrader69
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@JustUncleL, thanks for putting this out! going to give it a try!
dahilan
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@JustUncleL, Hello uncle. It's showing errors on line 54 and 158
fmghqht2019
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Hi uncle! awesome work. I'm trying to automate this process, but couldn't figure it out how to add an extra condition to avoid buy/sell alerting if it's too close to 200 EMA. Any idea or code snippets please?