Rebound Trading: Catching Small Corrections Using Three Indicators

Rebound Trading: Catching Small Corrections Using Three Indicators

You can trade binary options both in the direction of price movement and against it, that is, on a rollback.

The strategy that will be discussed is designed just for traders who prefer to work with a correction and take small movements for a rebound.

The system includes three oscillators that analyze the state of oversold and overbought areas.

Signal conditioning

Purchase PUT:

PUT bounce option

1. In the area of the first basement, the red line is located at level 90 and above;
2. Indicators located in the second and third basements must at the same time reach the level of the first indicator;
3. On a new candle, a DOWN option is bought for one candle.

Purchase CALL:

CALL rebound option

1. The indicator in the first basement zone (red bar) is very close to level 10 or below it;
2. The indicators in the second and third cellars must simultaneously reach the zero level;
3. On a new candle, an order is given to buy an UP option for one candle.

Trading brings profit only if all conditions are met.

But if the trend is strong, the indicators can get stuck for a long time in the oversold and overbought zones, so it is still not recommended to trade during the release of strong economic news, and for this you need to follow the calendar.

Read also - Indicator trading strategy: "Forecaster - history repeats itself!"

But there is a way out of this, if the indicators suddenly start to stick, since the final signal is determined by the indicator in the uppermost basement:

Example of indicator sticking

In the third basement, the indicator stuck to the top literally immediately, not much later - in the second basement, and so they stay at the very top, and as soon as the indicator in the first basement is stuck, you can enter.

The optimal time interval for a rebound strategy is 15 minutes, expiration is also 15 minutes.

The strategy can be accessed via the link below!

Trading recommendations

Recommended couples: any and even gold;

Timeframe: M15 (15 minutes);

Expiration: 1 candle;

Time to trade: any, except for the release of strong news;

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Template + indicators

To download the strategy for free, share a comment on this article, immediately after that a link for downloading files will appear here.


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