Strategy Based on Parabolic SAR and RSI Indicators

Published:22 February 2017 Updated:4 January 2024

About trading on binary options Many people know today, it is not difficult to become a trader on broker platform and open trades. The main thing to understand is that, like all trading tools, binary options have a number of peculiarities. It is possible to simply guess the dynamics of asset quotations, but you will not always be lucky and you will not always guess, so use trading strategies for their work. Among the trading strategies there are both ordinary and complex, as well as non-syndicated and under a certain trading asset.

What distinguishes binary trading from all other financial markets? Why are options so interesting to the Russian player? The availability of trading, the way of transparent earnings in the network, the possibility, if you want, to understand the basics of this activity and get even more benefits. Everything is possible if you have a smart approach to this still not the easiest work. Constantly testing new indicators, strategies, signalsYou are sharpening your personal trading system and making it effective.

One of those tools you should definitely pay attention to is Parabolic indicator for binary options (write and read reviews about it below). Its full name is Parabolic SAR, where SAR means “stop and reverse”, and the indicator itself is simply needed to accurately identify the moments of price reversals, using points it shows on the chart when there will be a change in the trend, when it is worth closing a position. In addition, the tool in the form of a parabola works with the advance, which allows you to get rid of the constant problem of delayed signals. These are very valuable features in binary options (as well as at the forex), because it is the early awareness of when there will be a change in the trend, will allow time to make a bet and get income. So it is not in vain Parabolic indicator for binary options has become part of profitable strategies.

Another strong tool you need to know about is RSI (or Relative Strength Index), the oldest and most reliable indicator used in more than a thousand trading systems, in a wide variety of markets (binary options, cryptocurrency trading, forex). There are hardly any players who do not know it, because it is with it beginners begin to work, its advantages are not forgotten and professionals of the market. The oscillator accurately identifies the strength of the trend, its change, upward and downward trends, overbought (the line above level 70) and oversold (the line below level 30), divergences, allowing to make a forecast in time and earn money.

Here we are going to talk about a binary options trading strategy for short timeframes. Transactions on short timeframes are convenient, there is less risk of losing all the capital than investing in a single trade on the H1 timeframe. On short timeframes it is possible to open several positions simultaneously with small bets.

For trading we recommend Binarium brokerThe company has been on the market for 5 years, with an impeccable reputation and an excellent set of tools. The trading platform Binarium functions well, during the testing of the strategy is not noticed lags or corrections in the quotes on the broker’s platform.

In addition, we advise you to test the strategy in other trading platforms of the market: INTRADE.BAR, PocketOption or Binomo.

Note at once that you should not work on the strategy at the time of an active news background and the publication of important economic news. For this we need:

Then you find the desired asset on the chart among the assets, timeframe and add two indicators for analysis: Parabolic SAR and Relative Strength Index.

Strategy based on Parabolic SAR and RSI indicators

This is what the graph looks like after the additional setup:

Graph after additional adjustment

  • By RSI indicator You can quickly determine the oversold and overbought zones at the moment of change in the trend direction.
  • According to the Parabolic indicator you can consider signal to open an order.

Signal to open an order

Open an order up:

  • The RSI indicator at the bottom in the basement entered the lower zone, the trading asset is currently oversold, the point of the Parabolic indicator is under the candle.

Now let’s look at the strategy and open an order up using an example:

Open an order up

  • RSI indicator: lower zone;
  • Parabolic: Under Candlelight.

Open an order up for a period of 30 minutes.

1. Go to the website Binarium broker
2. Selecting a Binary Options instrument
3. Select Active
4. Expiration time (should be 30 minutes)
5. Enter the amount of investment
6. Selecting the UP direction

Open an order upwards for a period of validity of 30 minutes

As you can see, the price continued to rise after the close of the candle.

Price continued to rise after the close of the candle

The profit was $182.

Profit was $182

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