Many traders are interested in a reversal strategy for binary options. The most commonly used indicators are the Bollinger Bands (BB) and Relative Strength Index (RSI). This indicator combines the BB and RSI indicators, an information window with a text message about the signal that has appeared, and signal arrows on the price indicator. The information window displays preliminary and main signals for currency pairs with timeframes and an accompanying sound notification. Signals are sent for currency pairs and timeframes specified in the settings.
When a signal appears, a line with the currency pair and timeframe is displayed in the information window, and a sound signal is given. Clicking on the information bar opens the currency pair and timeframe in the current window. Thus, on the MetaTrader 4 terminal, there is no need to keep open windows with a variety of currency pairs and timeframes necessary for trading.
- A buy signal (Call) is formed when the bar closes below the lower line of the BB indicator and the value of the RSI indicator is below the lower limit;
- A sell signal (Put) is formed when the bar closes above the upper line of the BB indicator and the value of the RSI indicator is above the upper limit.
When the signal formation condition is met, a signal symbol in the form of a corresponding arrow appears on the chart, the corresponding entry about the signal appears in the information window, and an audible signal is given. If the signal appears on a currency pair that is not open on the current chart, then only a message is displayed in the information window.
In the settings, there is a parameter for getting a preliminary signal for a given number of seconds, which allows you to pre-evaluate the entry point and prepare for opening an order. The preliminary signal in the form of an arrow may disappear from the chart if the signal formation condition is no longer fulfilled. At the same time, the information about the preliminary signal does not disappear in the information window.
Currency pair settings block (maximum of 30 pairs)
- PairsList1-specifies the first list of currency pairs separated by “; ” (maximum of 15 pairs);
- PairsList2-specifies the second list of currency pairs separated by “; ” (maximum of 15 pairs);
- Pre-alarm (sec) – the number of seconds to receive the pre-alarm;
- History signal (bar) – the number of bars for displaying signals in the form of an arrow.
Settings for displaying information in the information window
- Buy (Call) – color for the purchase information line;
- Sell (Put) – color for the information line for sale;
- Warning buy-color for the information line for the preliminary buy signal;
- Warning sell-color for the information line for the preliminary sell signal;
- Sound-enables / disables the sound signal;
- Send mail-enables / disables sending messages to the mail;
- Push notifications-enables / disables sending PUSH notifications.
Settings for the RSI and Bollinger Bands indicators
- Period RSI – the period for the RSI (the Close value is used for the price);
- Lower level RSI – the value for the lower level of the RSI;
- Upper level RSI – the value for the upper level of the RSI;
- Period Bollinger Bands – the period for BB (the value Close is used for the price);
- Deviation Bollinger Bands – deviation value for BB.
Time frame settings (maximum of 8 time frames)
- Timeframes-specifies the list of timeframes separated by “; ” in minutes (max 8);
- Color arrow on buy – color for the signal arrow to buy;
- Color arrow on sell – color for the signal arrow for sale.
If you need to display BB and RSI on the main chart, then separately add the standard BB and RSI indicator with the appropriate settings.
Attention: For the indicator to work properly, you need to download the bar history for the currency pairs and timeframes specified in the settings. If there is no history, a warning is issued. You can download the history of a currency pair in a separate window without leaving the main window with the indicator installed.
The history of signals in the form of arrows is issued only for the listed timeframes specified in the “List of timeframes” field.
To test with the strategy tester, you need to set one currency pair and one timeframe in the settings.