Based on two popular technical indicators Aroon and Bollinger Bands, Blink strategy is efficient for trading binary options. It is simple and effective because it helps traders find moments to open or close deals based on changing trends and market volatility.
This strategy is perfect for both beginners and experienced traders, and all the tools necessary for its application are already in the broker terminal Pocket Option. In this article, you will learn how to properly set up your work account, what preferable conditions to enter a trade, and how to use the above indicators to make a profit.
How to set up a trading terminal
To trade successfully using the Blink strategy, you need to set up your trading platform correctly. This strategy works based on time frames and indicators that can be adapted to different market assets. For example, when we talk about the time frame, the method works best on short-term time intervals. The optimal time frame is 5 minutes. It is designed for most effective use of short-term trends and changes in the market, which appear quite often.
You should choose assets with sufficient volatility will do. These can be currency pairs (EUR/USD, GBP/USD), commodities (gold, oil), as well as large indices and stocks.
More about the indicators:
- Bollinger Bands: Configure it with a standard deviation of 2 and a period of 20. The tool is used to measure market volatility and identify overbought and oversold levels.
- Aroon: Set up the period 14 for Aroon. It helps to determine the strength of the trend and the moment of reversal. The indicator consists of two lines: Aroon Up and Aroon Down, which show the dominance of bulls or bears in the market.
How to Trade with the Blink Strategy
“Blink” Trading is based on the interaction of signals generated by the Aroon and Bollinger Bands indicators. It is trader’s responsibility to correctly interpret these signals and enter the market only if all conditions are met.
Conditions for opening a CALL:
- Bollinger Bands: The price touches or breaks the lower band of the price channel. This indicates that the asset may be oversold.
- Aroon: The Aroon Up (blue) line crosses the Aroon Down (red) from bottom to top. This signals the beginning of a new uptrend or a strong upward correction.
- Confirmation: It is advisable to wait for the price to reverse or for a reversal candle to appear.
Conditions for a PUT trade:
- Bollinger Bands: The price touches or breaks the upper band of the price channel, indicating that the asset may be overbought.
- Aroon: The Aroon Down line (red) crosses the Aroon Up (blue) from bottom to top, indicating a possible start of a downtrend.
- Confirmation: You should wait for confirming reversal signals, such as a bearish engulfing candle.
Expiration should be 3-5 candles depending on the selected timeframe.
The “Blink” strategy for binary options is an effective system based on two simple and reliable indicators. This method allows you to find trend reversal points and open deals on short-term timeframes, which makes it ideal for those traders who prefer active trading. The main thing when working on the strategy is to strictly follow the rules and not neglect the signals that the indicators give.
