The 5-minute Blossom trading pattern for binary options

The 5-minute Blossom pattern for trading binary options

For those who love short-term options, we offer a trading system called Blossom, which can bring very impressive amounts of profit. Thanks to a fine combination of effective technical indicators, the signals of the strategy are timely and accurate and ensures 87% of trading deals close with a profit. In addition, since the system is very simple to apply, newcomers can easily work with it.

The accurate tactics Blossom, 5 minutes of binary options: technical parameters

The technical side of this strategy includes three automatic indicators that determine the trend and foresee its upcoming turns: moving average (exponential type), Bollinger Bands and RSI. Such a combination may seem unusual, but this approach to trading guarantees an almost 100% accuracy of determining the time and direction of market turns, allowing to enter the trade with a serious advantage. As an indicator of trend and volatility, Bollinger Bands are the first to show market turns by forming the classic signal in the form of a rebound of quotations from the channel boundaries. Following the BB, MA indicator (type Exponential) also generates a trading signal that will show the direction of the next turn. The RSI indicator will add an unambiguous confirmation of a new short-term trend, on which it is possible to conclude a deal with a 5M expiration, to the complex trading signal.

So, since this system is an indicator-based system, the main condition for its use is a professional trading terminal with a built-in set of indicators that the strategy requires with corresponding settings. On such a platform, the system will show the intended efficiency. When preparing the article, we chose the trading terminal of the Binomo broker as a perfect example of such a platform. It features all the necessary functions and tools for the most effective use of the Blossom strategy.

How to build a template

From the indicators available on the terminal we choose the following names with the necessary configuration to set on the chart:

– Bollinger Bands, standard settings;
– MA, Exponential, type; the movings periods of 3 and 5 (the color of the senior moving is blue);
– RSI, standard period, the marks of extremes are 50/50.

The timeframe of the chart is M1. We recommend to choose a basic asset with high volatility, and trade only in day time. After all the necessary settings are set, we get the following picture:

Signals of the 5-minute strategy for binary options Blossom

So, you’ve created the technical template. Now you need to wait for the main trading signal to appear: the quotes touching the channel frame of the Bollinger. Then, when the moving average lines intercross, wait for the RSI indicator to confirm the signal and then immediately enter the market — open a deal in the direction, forecasted by the three indicators.
Open an UP deal (CALL option) when:

– The quotes touch the bottom frame of the Bollinger channel and make a turn for growth;
– EMA lines intercross with an upward slope;
– Moving RSI move above the trend level 50.

Open a DOWN deal (PUT option) when:

– The quotes touch the upper frame of the Bollinger channel and make a turn for decline;
– EMA lines intercross with a downward slope;
– Moving RSI move below the trend level 50.

Expiration and Money Management

This strategy was designed for a 1-minute interval of the chart, so we do not recommend using it on timeframes of several seconds. Taking into account the actual continuity of the trading signal, the optimal expiration of deals is from 5 to 10 minutes, depending on the current level of market volatility.
To reduce the risks, it is best to follow the classical rules of risk management, limiting the amount of the option to 5% of the volume of the deposit. Trading only 1-dollar options, available at the Binomo broker’s platform, will allow to reduce the amount of risk when working with modest trading funds.

 

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“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”