10# RSI Strength: Binary Simple and Winning

Submit by Janus Trader 24/03/2024

RSI strength: Binary is a strategy based on the Relative Strength Index.

Setup Strategy

1 minute or higher,

Time expiration by 1 to 5 candles,
Objective: Use the RSI (Relative Strength Index) indicator to identify potentially profitable entry points for binary options, with a 5 minute expiry option.Indicator Used:
RSI (Relative Strength Index): Configured with levels of 55 on the upside and 45 on the downside to identify significant breakout points.

Indicators

RSI 13 period, close.

Moving Average 50 periods, close.

Trading Rules

Price above 50 MA only call, price below 50 ma only put.

Price above 50 MA
1. Buy Signal (Call Option):
When the RSI breaks above the 55 level:
Wait until the RSI rises above the 55 level.
Confirm the breakout with an acceleration of the candle or an increase in volume.
Execute a Call option with a 5 minute expiry.
2. Sell Signal (Put Option):

Price below 50 MA
When the RSI breaks down the 45 level:
Wait until the RSI bearishly crosses the 45 level.
Confirm the breakout with an acceleration of the candle or an increase in volume.
Execute a Put (Sell) option with an expiration of 5 minutes.
Risk management:
Limit the investment amount per trade to a fixed percentage of the total capital, for example, no more than 5%.
If a trade ends out of the money, do not double the amount of the next trade to try to recoup your losses.
Use only reputable and regulated brokers to execute binary options trades.
Trading Example:
Buy Signal (Call Option):
The RSI breaks above the 55 level.
An acceleration of the green candle is observed.
Execute a Call option with a 5 minute expiration.
Sell Signal (Put Option):
The RSI breaks below the 45 level.
An acceleration of the red candle is observed.
Execute a Put option with an expiration of 5 minutes.
Important Notes:
This strategy is based on the reactive nature of the RSI to changes in price momentum.
It is essential to confirm trading signals with other indicators or price analysis to reduce the risk of false signals.
Before using this strategy with real money, test it on a demo account to evaluate its effectiveness and adapt it to your needs.
Discipline and risk management are key to success in binary options trading.

Expected average profitability >50% <65% recommended management Masaniello 30 step.
Risk Warning: Trading binary options involves a high risk of loss and may not be suitable for all investors. We recommend that you consult an independent financial advisor before making any investment decisions.

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