Trading strategy on a fractal reversal with the RSI filter Bill Williams is one of the most famous traders in the world.He was, in fact, a pioneer in the field of modern trading.He founded the world’s first school to teach trading on the market.Bill is better known as the developer of several popular indicators.The most popular ones are the “Alligator” and “Fractals.”Let’s find out the effective strategy combining Fractals and the RSI. Saqib Iqbal 30.01.2022 365Content What are Bill William and RSI indicators anyway? How can you configure your trading platform? Signal for options "up." Signal for options "down." An example of trading on a fractal reversal Is the strategy worth it? FAQsWhat are Bill William and RSI indicators anyway? Bill William and RSI indicators are a tool you use in technical analysis.They are handy in determining the direction of the trend.Let’s briefly explain them:Bill Williams’ Fractals have little to do with fractal mathematical theory.Fractals draw arrows to mention highs and lows.Usually, the red color illustrates a bullish trend.Conversely, the blue color represents a bearish trend.Now, fractals draw a U-shaped pattern on the chart.This U-shaped pattern indicates highs and lows.These highs and lows occur according to the candlesticks.In an uptrend, the price moves down and then goes up, forming a U.Contrary, in a downtrend, the price moves from up and comes down to form a U.Now, let’s move to the RSI.RSI is an acronym for the Relative Strength Index.It is one of the most popular indicators of the oscillator class.It consists of one line.The calculations of this line happen by a complex formula.The formula averages the chart’s price values for a certain past period.The RSI line shows oversold and overbought conditions from 0-100.When the indicator illustrates above 70 reading, it’s overbought condition.It suggests buyers are winning, and the trend will come down.Conversely, when the RSI marks below 30 readings, it’s oversold condition.It mentions sellers are driving, and the trend can go up.50 is the neutral level.It marks neither bulls nor bears are winning.In this strategy, the Relative Strength Index acts as a filter.It is because fractals frequently surface on the chart.You have to combine it with another indicator to filter the market noise.Such market noise or whipsaw makes detecting entry and exit points harder.So, we have to use an oscillator to help limit these whipsaws.Hence, the RSI oscillator helps in filtering any false signals.Further reading Live Binary Options Chart 11 Best Paper Trading Apps (Trade With No Risk) The "Roof" strategy of trading on the futures market Volume Based Trading Techniques (Volume Indicators) What Is FOREX? Unknown Facts & Figures (The Ultimate Guide) Investors take Forex platform ROFX and its founders to courtHow can you configure your trading platform? To apply the strategy, you have first to set your trading platform.There’s no rocket science behind it.Let’s walk you through how you can configure your platform.Often, I see traders neglect setting up their trading platform.Setting up a trading platform is part and parcel of any trading strategy.Charts show us plenty of info, so what we need to do is concise this data.We can only compress the data if we set up our trading platform accordingly.When setting up your trading platform, you should ask;“What timeframe should I use”?Which indicator/indicators are best for me”?“Which chart should I apply”?I am answering these questions before the trade helps you get the relevant info.One of the good things about this strategy is applying it to any asset.For instance, you can use it for any forex pair or stocks.However, there’s an exception.You can’t use the strategy on cryptocurrencies with USD pair.For example, BTC/USD and LTC/USD, etc.It is because they have a low-profit percentage.How to set up the platform?Here’s how you can set the platform:asset: any currency pair or shares and raw materials;time frame: from 15 seconds to 5 minutes, ideally 1 minute;expiration: depends on the time frame, it should equal 2–5 candles;investment: according to risk-management rules, 1–5 % of the account or less;indicators: the Alligator with a display function for fractals and RSI.You need to configure the RSI specifically.The period of the RSI should equal 8.The indicator’s overbought/oversold zones should match 50-mark.Now here’s an excellent idea to make things more interesting.You can make the overbought area green.And you can paint the oversold region red.You can see an example of an RSI indicator in the picture below.RSI indicator on the chartFurther reading The most popular trading assets for binary options A scalping strategy for options Features of Islamic accounts for trading in binary options and Forex BinaryOnline - forex trading platform review CXMARKETS BROKER REVIEW 2022: COST AND BENEFITS Intrade.Bar is a transparent binary options brokerSignal for options "up." Now that you have set the platform, it’s time to enter the trade.There are two conditions for opening an extended position.Let’s find out which are those.This fractal has a structure like a downward triangle. First, the chart should show a descending fractal.You can find it under a Japanese candle.Secondly, the oscillator must cross level 50 and enter the overbought zone.Signal up option chartThe extremum consists of 5 candles.So, there is a delay of two price elements in real-time before it appears on the chart.In most cases, a fractal appears first, followed by confirmation from the RSI.You can enter the market right after the closure of the signal candle.The signal candle suggests there was an intersection of the RSI zone borders.After these conditions, you can enter the trade.Further reading Take-profit and stop-loss on the IQ option platform! Should I register an account on the Block Option? IS QUOTEX A SCAM?? READ THIS BEFORE TRYING THE BROKER IN 2022 Convert Satoshi to Bitcoin and Bitcoin to Satoshi Calculator How to make money on binary options without any investment? 110 Trading Quotes to Set You on the Road to SuccessSignal for options "down." For entering short, you can reverse the buying strategy.The signals are similar, and here’s how you can apply them.First, you need to look for an upward fractal.And a transition of the RSI to the oversold area.For clarity, here’s the picture illustrating the option down signal:You can see that we enter after three candles of the extremum.It a model because the confirmation from the filter didn’t appear immediately.Signal down options chartFurther reading How long does it take to learn to trade binary options? Doubtful regulation of the CROFR Live Currency Heat Map EXANTE BROKER REVIEW 2022: COST AND BENEFITS Binarycent an automated binary options broker review (US, CA, AU) MBA Forex Blamed CBN Because Of Inability To Return FundsAn example of trading on a fractal reversal Now that you know signals for up and down options, let’s move to a standard.This example will help you in practicing the strategy.The actual model effectiveness of strategyis comes when you practice them.We’ve done that, so you don’t have to go through the hassle.For this example, we opened a trade on the Binomo platform.We chose the crypto index.And the timeframe we chose was 30-second.We selected this timeframe because signals form better on it.Timeframe selectionSo, we instantly got a signal to buy an “Up” option.It was the intersection.The RSI and the downward extremum produced the signal.Therefore, we opened a trade on the increase.The expiration time was 2 minutes, which on our timeframe equals four candles.We didn’t get a strong trend.However, we can see a bit of deviation to profit from trading options contracts.So we got our $8 net profit on a $10 investment.There was a signal on the market to purchase an option “Down,” also.It happened when the RSI returned to the oversold zone.And above the candle, there was an upward fractal.Further reading The 80/20 rule In Trading. How To Implement It? What does a forex trader do? What is forex trading? What Is Online Wealth Market (The Full Review 2022) How to Buy Stripe Stock THE POCKET OPTION REVIEW 2022: PROS & CONS Pip calculatorIs the strategy worth it? Now, I know many of you are thinking, is the fractal RSI filter strategy worth it?Well, let’s find out.The fractal reversal RSI filter has pros and cons like any other strategy.Let’s talk about the pros first!The strategy is a great predictor of a trend reversal.The combo of fractals and RSI is an excellent blend for finding a trend reversal.Like mentioned earlier, fractals appear first, and the RSI confirms the signal.When you see the reversal, you can enter after the confirmation.Now, lets’ talk about the issues you may face in this strategy.Sometimes you can’t have the perfect trend.You get the confirmation signal, but the trend doesn’t go your way.It’s because the fractals do pop up frequently on the chart.And even we use the RSI; sometimes there are a few deviations.Although this strategy is accurate, you also must look for these points.Further reading Finmax binary options trading platform as is review Moon Bitcoin Review 2022 (True Or Fake) Trading strategy on a fractal reversal with the RSI filter What to do if your broker refuses to pay you your earnings How Long Does It Take To Get One Bitcoin? A ranking of the richest traders. What do we know about them? FAQsHow the strategy shows reversals?The strategy pinpoints trend reversals by plotting fractals and using the RSI filter. Fractal is the main indicator while RSI is a confirmatory tool.Why use the RSI in the strategy?RSI filters the market noise that fractals may not detect. Also, it confirms whether the market has already reached a mature trend or if the trend is still juicy to jump into it.How to enter the trade by using the strategy?You can enter by confirming a trend reversal and then enter on the next candle.How to exit the trade by using the strategy?You can exit the trade when the trend changes its course. Look at RSI overbought or oversold conditions.Is the strategy worth it?Yeah, fractal reversal with RSI filter is worthy for binary options trading. You can apply it on any timeframe. Better test things on demo before going live.Final thoughts The Fractal reversal trading strategy with the RSI filter is super effective.It helps you in finding trend reversals quickly.So, you can enter and exit the trade accordingly.Further reading How can be cheated the binary options trader 10 TradeFX - a regulated broker for the forex market, CFDs Trading on cent accounts EasyOption - cryptocurrency binary options Trader’s profitability Calculator Top 10 Fun Facts About Forex Trading