![Binary options divergence strategy with bollinger bands](https://image.jimcdn.com/app/cms/image/transf/dimension=300x300:mode=crop:format=gif/path/s2e2ea4a9b3965dd1/image/i558a2eca1183babc/version/1394587457/image.gif)
Divergence Method of the trading.
What 's divergence?
In an up trend that will setup as a bearish trade, you 'll see the price making higher highs but you'll see the indicator making lower high.
In opposite direction?
In an up down taht will setup as a bullish trade, you 'll see the price making lower lows but you'll see the indicator making higher low.
Time Frame 5 min= Time expire 60 min.
Time Frame 15 min= Time expire 180 min.
Metatrader indicators:
ATM RSI Histo Triple Stochastic Divergence indicator;
Fibonacci Retracement: XIT Fib indicator.
The price should be above the upper Bollinger Bands indicator in case of a bearish divergence and in the same manner the price should be below the lower Bollinger Bands indicator in case of a bullish divergence.
When the bullish divergence is spotted (time frame 5 min), it is a signal for buying a 1 hour call option.
Buy When the red bars of the indicator ATM RSI Histo Triple Stochastih Divergence retrace below the dotted black line.
Touch points are the Fibonacci Retracement: XIT Fib indicator.
In the same manner when a bearish divergence is spotted (time frame 5 min), it is a signal for buying a put option.
Sell When the blue bars of the indicator ATM RSI Histo Triple Stochastic Divergence retrace below the dotted black line.
Touch points are the Fibonacci Retracement: XIT Fib indicator.
This method of trading based on divergence can also be applied to Binary options strategies High / Low but this method of trading is not for beginners.
![Binary options strategy one touch Divergence with bollinger bands time frame 15 min](https://image.jimcdn.com/app/cms/image/transf/dimension=723x10000:format=png/path/s2e2ea4a9b3965dd1/image/i9b75b2bc2583cf14/version/1371566455/image.png)