Technical analysis of financial markets often uses the concept of divergence. This is one of the early signs of how the market will behave in the near future. Divergence is the difference between MACD, Stochastic, RSI and price movement. Divergence shows that the movement has lost its strength and can turn around. Divergence works on any timeframe, so it can be used in binary options trading. Of course, it’s not a good system for newcomers.
Bull divergence is a sign of a downward trend reversal.Bearish divergence is a sign of a trend reversal upwards.Here is an example of the use of divergence in combination with Bollinger stripes. Of course, it’s not a good system for newcomers. The main indicator in this system is the divergence indicator “ATM RSI Histo Triple Stochastic Divergence indicator”. It is displayed in the bottom window of the chart. Blue bars indicate bullish divergence and red bars indicate bearish divergence. The “Bollinger Bands” indicator helps to identify the entry points. XIT Fib indicator” is used to define touch points. An example of buying put options on this system on a time frame of 15 minutes. The price pushed back from the top line of the Bollinger Bands indicator. The blue bar “ATM RSI Histo Triple Stochastic Divergence indicator” has appeared. Next candle, we buy an option. From the Fibonacci levels we determine the time of expiration. For a timeframe like this, it could be up to three hours. The most appropriate level here is 23.6%. That’s just three hours. An example of buying put options on this system on a timeframe of 5 minutes. The price pushed back from the bottom line of the Bollinger Bands indicator. The red bars of the “ATM RSI Histo Triple Stochastic Divergence indicator” indicator appeared. Next candle, we buy an option. The nearest Fibonacci levels are far away, so we just count on 12 candlesticks, i.e. the time of expiration is 1 hourIn the same way, you can work on higher timeframes, so that the expiration time will be longer. And on large timeframes the forecast accuracy is higher. Try to choose the right binary options broker.Download system files