Bollinger Band Stochastic Strategy
Many people looking for some online earning opportunity have joined Binary Options and Fixed Time Trading in India as a part-time business. By working online on these financial products, it is possible to earn a decent amount every day. It is important to know that many people lose money while trying to earn, but successful people use appropriate money management skills. Although it is impossible to avoid loss while doing such type of online trading, lost money can be recovered with proper management and disciplined trading.
IQ Option trading strategy using Bollinger Bands and Stochastic – This is one of the simple and effective strategies used by many successful traders. Although no strategy can guarantee you profit, they can certainly increase your chances of success. You can try it in a RISK-FREE Demo Account and practice it. If you find it is working for you, you can trade in a live trading account with IQ Option or Quotex and take up trading as your Online Business in India.
The Bollinger band strategy discussed here is simple to understand and increases chances of success in Options trading or Fixed Time Trading. It requires some basic chart interpretation skills.
You can potentially make $50 every day, by trading carefully for a few hours. But never forget the risks involved in trading and the risk of losing money.
The benefits of taking Binary options trading as an “Online work in India” is that you are your own boss. You need not work for others, and there is no upper limit to your earnings. You can work by investing a nominal amount starting from Rs 3,500 to Rs 35,000 ($50 to $500). However, if you don’t trade responsibly, and try to become rich overnight, then you may lose your initial investment. Hence you must trade responsibly and follow proper risk management strategy.
How to make $100 per day in India using Bollinger band and Stochastic Indicator?
Let us see how to use these two simple and free indicators to trade Binary Options or Fixed Time Trades of 5 minutes expiry. I have used this method on several occasions to make $50 to $100 in a few hours on several days, and I have also lost money on a few occasions.
Bollinger Bands
It displays the volatility of the asset above and below a moving average line. If the width of the band is narrow, there is low volatility. If it is wide there is good volatility in the market.
The price of the assets moves between the bands most of the time in a range-bound market – the upper and lower portion of the bands may be considered as the area from where the price may bounce back.
Stochastic Oscillator
It is a momentum indicator that works by comparing the closing price of an asset over a range of time. The Stochastic indicator’s reading above 80 indicates as overbought, and below 20 indicates oversold levels of an asset.
Configure your chart for Binary Options Strategy in India:
Login to your trading platform, select Bollinger Bands, and Stochastic Oscillator on the candlestick chart of the 1-minute time frame. Then start trading by following the trading conditions mentioned below.
- Select Bollinger Bands and Stochastic Oscillator on a 1 Minute candlestick chart as shown in the IQ Option platform image above.
- When the candle is touching upper band AND Stochastic is above 80, its a time for a reversal. Hence place a PUT trade there with 5 min expiry. See the attached screenshot.
- When the candle is touching lower band AND Stochastic is below 20, its a time for a reversal. Hence place a CALL trade there with 5 minutes expiry. Refer to the attached screenshot.
- Use support and resistance to find better entry points.
- On an average I won 8 trades out of 10 while following this strategy, thus giving a winning of 80%. You can see my live trades and the winning percentage in the image below.
You can use additional confirmations from other indicators to increase your success rate. Using of Support Resistance lines, and trend direction works well to filter out less probable signals. You may lose a trade, hence don’t invest all your money in a single trade. Invest 5 to 10 percent of your capital.
How to earn $50 per day in India using this strategy?
To use this strategy, you have to open a demo account with IQ Option or Quotex. You must practice this strategy in the Demo Account for a few days until you feel confident to trade with real money.
Deposit an amount of $50 or more and start trading with $5 using this IQ Option Strategy. Stop trading for the day after you reach your target of $50, or if you lose 3 consecutive trades.
This strategy does not work well in an idle market or during news releases. Hence, avoid trading during news hours and when the market is idle. The idle market is indicated by narrow bands of the Bollinger band indicator.
I got the following trades in less than an hour and won 8 trades out of 10.
The important factors to keep in mind while trading with this Binary Options strategy:
- Don’t risk all your money in a single trade.
- Practice the strategy in a demo trading account and see its performance.
- Always stick to your trading strategy.
- Avoid trading if your indicators don’t show you an opportunity.
- Never risk more than 5 to 10 percent in any single trade.
- Don’t invest the money you can’t afford to lose.
- This strategy works well in a ranging market. Don’t use this strategy in a trending market.
Does this strategy works on Quotex Platform?
Yes, of course. As long as you follow the indicator correctly, it works with a high success rate. It can be used as an effective Quotex trading strategy. This is one of the general Binary Options Strategy successfully used by traders in India. Check out another Binary Options Strategy – MACD Strategy.
