When the indicator crosses the 30 line from below, it gives a signal to call and when it crosses the 70 line from above, it gives a signal to put. Oscillators like the RSI, however, can be used in trending markets as well. What better time to call than when the market is trending and the indicator tends to agree. Indicators should not be used alone. Using them blindly will result in failure. Adjusting the indicator's parameters will not improve performance.

It will, however, adjust its sensitivity. An RSI with a period of 5, instead of the standard 14, will make it quicker and it will respond with drawing sharper lines on the graph. I was wondering because I am a site owner too and struggle with writing new content all the time. Someone told me to use AI to do create articles which I am kinda considering because the output is almost written by human. Save my name, email, and website in this browser for the next time I comment.

Notify me of follow-up comments by email. Notify me of new posts by email. Press ESC to close. Rules for RSI Binary Options Strategy. Buy Call. When appairs the RSI Buy arrow wait that Stochastic crosses upward.

Buy Put. When appairs the RSI Sell arrow wait that Stochastic crosses downward. In the pictures RSI Binary Options Strategy in action. Vagner Breta Gallo Saturday, 25 July Mirror Bands Binary system. Price Action 4H Binary System. Gimmee Bar Binary System. RSI Binary Options Strategy.

We will show you how you can generate 5 minute binary options signals. This is a complete strategy that you can implement in your trading plan. Traders use many different trading strategies that allow them to identify the best points to enter and exit their transactions. Some methods are based on candlestick patterns and some on indicators. The one I will present today joins the RSI, the EMA and the engulfing pattern.

You must be logged in to your IQ Option account. Today's strategy gives the best results in the markets with high volatility. Take it into account when choosing the asset. Set the chart timeframe for 1-minute.

We will use two indicators in this strategy, the Relative Strength Index and the Exponential Moving Average. The RSI will be used to identify the medium-term trend. The EMA serves as a long-term trend filter. We will use the EMA with the RSI on the 1-minute chart. Click on the Chart Analysis icon and find the RSI indicator. Leave the default settings.

Then find the EMA and add it to your chart. Change its period to You can see on the above chart that my RSI has got just one horizontal line at the level of How I did that? I set the Overbought level at Then I went to colour settings and made the Oversold level transparent changing its opacity. This way I have an RSI indicator window with only one horizontal line I am interested in. On the IQ Option platform , you have the possibility to save the configurations.

This is very convenient when you use a strategy often. Next time you will just have to find a ready template instead of adding all needed indicators. Simply write the name you want this particular template to be called and click Save. You can save your indicators set as a template. The strategy is used on the chart with a 1-minute candlestick period set. You should, however, keep the position open for 5 minutes.

The assumption is that the price will fall or rise within 5 minutes from the signal received. So set the expiration time to 5 minutes for your binary option. Remember to keep your expiration at 5 minutes. Trading binary options with a strategy that combines the RSI, the EMA and the engulfing pattern is not very complicated. It requires you to follow a few simple rules and to act as soon as you get a signal to open the transaction.

The first thing is to observe the EMA line. The price bars should develop beneath it which indicates there is a downtrend. Next, look at the RSI window. There is a horizontal line with a value of The indicator should run below this line. With these two conditions met, wait for the bearish engulfing pattern to appear.

The body of the bearish candle should engulf the body of the former bar. When you notice such a pattern, open a short position right when the next candle begins to develop. When you plan on opening a long position, there should be an uptrend in the market. To ensure this is the case, check where the candles are developing in relation to the EMA line.

You are looking for a situation where the price is above the EMA The last thing you are waiting for is the appearance of the bullish engulfing pattern. The pattern is valid when the body of the bullish candle covers the body of the previous price bar.

Open the long trade immediately after the signal at the opening of the next candle. Hold the position open for a duration of 5 minutes. The strategy that joins the EMA, the RSI and the engulfing candlestick pattern is quite easy to use. You identify the trend with the help of the EMA, then assess the price momentum with the RSI and wait for the trigger which is the engulfing pattern.

You should observe the chart carefully and enter the trade right after the occurrence of the candlestick pattern. This will give the best results. Use this strategy to get quality 5 minute binary options signals. We are using the EMA here to identify the trend. We assume there is a downtrend when the price closes below it and an uptrend when the price closes above the EMA line. But as the price frequently consolidates around the Exponential Moving Average, you may wish to adjust these criteria a little bit.

You may, for example, rely on 5 consecutive candles. So you will identify the downtrend when the last 5 candles were below the EMA and the uptrend when the last 5 candles were above the indicator's line.

You may also experiment with different trade duration. Maybe 4 minutes will work better for your profits. Or maybe 3? Whatever you choose, trade in the IQ Option demo account first. You will not risk your own money but you will get the time necessary to try different settings and to find out what brings you the best results. Have you ever used the strategy that combines the RSI, the EMA and the engulfing candlestick pattern to trade binary options? Share your results with us in the comments section which you will find further down the site.

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Trading binary options with a strategy that combines the RSI, the EMA and the engulfing pattern is not very complicated. Thanks Traders! No Ratings Yet. We use a heuristic approach to speculate on which way the price is going to move during the next 60 seconds. Get help.

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