Binary Options Strategy on Pocket Option: Using Bollinger Bands and RSI

Thanks to Pocket Option expanding its list of indicators for binary options, traders can now apply a variety of strategies directly on the platform without relying on external terminals. One of the simplest and most effective strategies combines Bollinger Bands and RSI.

This strategy has clear rules and can be applied to any currency pair or other assets on Pocket Option, making it beginner-friendly.

Additionally, traders can start with bonus funds using Pocket Option promo codes, and further improve performance by using a promo code to cancel a losing trade for up to $10.

Adding and Setting Up Indicators in Pocket Option

Before trading, it’s important to understand the indicators used in this strategy.

Bollinger Bands

Bollinger Bands represent a price channel within which the asset trades most of the time. Price breaks the boundaries only during strong impulses, which happen roughly 20% of the time. During sideways (flat) markets, price rarely moves outside the channel, making it possible to trade within the channel.

Bollinger Bands serve two purposes:

Filter for buying options
Trend indicator

Setting Bollinger Bands in Pocket Option:

Period: 20
Deviation: 2

RSI (Relative Strength Index)

RSI is an oscillator that shows the strength of price movement. It signals potential trend reversals when its readings enter the oversold zone (below 30) or overbought zone (above 70).

RSI in Pocket Option:

Default settings are sufficient for this strategy

Important Note:
Both indicators can be used effectively on their own, but combining them improves accuracy. Always trade in the direction of the trend to increase the probability of profit.

How to Add Indicators

1. Open the Indicator Panel on Pocket Option.

2. Select Bollinger Bands and RSI.

3. Adjust Bollinger Bands settings: period 20, deviation 2.

4. Keep RSI settings at default.

Trading Rules with Bollinger Bands and RSI

Call Option

Buy a Call option when:

Price is near the lower Bollinger Band
RSI is below 30 and crosses upwards

Put Option

Buy a Put option when:

Price is near the upper Bollinger Band
RSI is above 70 and crosses downwards

Tip:
Sometimes RSI may be near the overbought/oversold levels without fully crossing them. Waiting for a clear cross improves trade accuracy.

Expiration

Use 5 candles for expiration when trading with this strategy.

Examples

Call Option: Price touches the lower Bollinger Band, and RSI starts exiting the oversold zone.

Put Option: Price touches the upper Bollinger Band, and RSI crosses down from the overbought zone.

Conclusion

Trading with standard indicators can be profitable if all rules are followed carefully. Beginners should:

Practice on a demo account before trading with real money
Follow risk management and money management rules to protect the deposit

By combining Bollinger Bands and RSI, traders can make more informed decisions and increase their chances of success.

Happy trading!