Rainbow 15min – binary options rainbow oscillator strategy is best used on short term expiries such as 15 minute binary options. It is a bit complicated strategy because of the many indicators involved. This trading strategy isn’t really that great when compared to the amount of indicators involved.
Who is this strategy ideal for?
To use this strategy successfully, traders need to take into account the various parameters before placing a binary options contract. It is therefore recommended that only advanced traders use this strategy.
- Moving Average indicator (5, close, exponential)
- Stochastics oscillator (5, 3, 4; Low/high, simple)
- Fisher Yurik (10)
- Fisher Rainbow Oscillator (2, 10, 0)
- Accelerator oscillator
- Fx Sniper 3 CCI (7, 3, 0.618)
- Chart Time frame: 5 minutes
Read guide how to install MT4 indicators here
For PUT Options
- Price must be below the 5 EMA
- All oscillators must be pointing downwards (in Red) and Stochastics must be below 80
For CALL Options
- Price must be above the 5 EMA
- All oscillators must be pointing upwards (in Green) and Stochastics must be above 20
- At 23:25, price crosses above the 5 EMA
- We also notice that Stochastics is above 20 and all other oscillators are pointing upwards and green
- At the close of the candle, we place a CALL option for a 15 minute expiry, which resulted in a profit
- At 00:10, price crosses below the 5 EMA
- Indicators also turn to red and pointing downwards
- Stochastics also is below 80
- A call option with 15 minute expiry is placed, which resulted in a profit
Strategy Tweaks and Tricks
- Avoid trade signals when there is a strong bullish of bearish candlestick near the EMA
- Patience and waiting for the right conditions is essential to the success of using this strategy
While the Rainbow Binary strategy is sound and robust, the fact that one has to consider the signals from the indicators in this strategy makes it a bit complicated at first. Despite the complexity involved, this system doesn’t really give better odds of winning, which therefore, traders need to consider first before using this strategy.
Download Rainbow Binary strategy