So, I've been playing around with this awesome combo of the Relative Strength Index (RSI) and Bollinger Bands, and let me tell you, it's gold for creating a solid trading strategy for turbo options. Now, turbo options might seem like a wild ride, but trust me, they can deliver some serious profits. In this game, it’s not about the number of points; it’s all about the direction of the trend!
Setting Up My Terminal and Indicators
Turbo options thrive on highly volatile assets, like currency pairs or cryptocurrencies. I kick things off by building my strategy around the RSI and Bollinger Bands. My go-to timeframe? A neat 60 seconds with Japanese candlesticks lighting up the chart. Tools and indicators? You can grab them all over at the broker PocketOption for advanced trading strategies.
Bollinger Bands? I set that up with a period of 20 and a deviation of 2.
Now, the RSI needs a little extra care. The usual 14-candle period is for the mid-level traders, but I'm here for turbo options, so we gotta adjust that.
For my RSI settings, I go with a period of 7 and raise the default RSI levels to 20 and 80.
Those overbought and oversold levels signal me to buy a contract, but if I keep the period at 7 and stick to the classic zones of 30 and 70, the RSI just gives me a bunch of false positives due to market noise. No thanks!
Trading Options with RSI and BB at 60 Seconds
My turbo options strategy? It’s all about mixing the strengths of RSI and BB. Let’s be real—if you find someone claiming they’ve got it all figured out just using RSI alone, call it out. It's either a one-off lucky streak or some selective reporting there. Here’s how I work it:
- CALL when the RSI line bounces out of the oversold zone, and I spot a breakdown through the lower level on the Bollinger Bands.
- PUT when the RSI line creeps out of the overbought zone, and I see a breakdown at the upper edge of the channel on BB.
For turbo options, I make sure the expiration period is comfortably set between 2 and 4 minutes.
It’s that simple! I jump in to buy if the variables fit snugly within the Bollinger Bands and the bands are widening within my pre-set range, plus the RSI hits the oversold area. Conversely, I sell if the widening variables stay within the Bollinger Bands, tight margins, and the RSI enters overbought territory.
To sum it up, always keep in mind that the RSI is like a fickle friend—it relies on the market's mood. If things are sideways, it’ll likely give me solid signals. But if we’re trending, it’s time to pull out the big guns with other tools.
