Binary options trading by signals. Trading Signals: Help or Swindle? Free trading signals for stocks

Signals for binary options represent certain conditions, under which, there is a high probability of the implementation of a particular forecast, which allows you to earn money on binary options and the Forex currency market. To determine the conditions for entering the market, or as it is now fashionable to say a binary signal, or a signal for Forex, special indicators allow, and the combination of these indicators in one place represents a trading strategy for trading in binary options or forex.

In this article, I will describe the work of trading on binary signals from. Binary Option Signals are calculated using a special algorithm and can be implemented on any instrument…

Binary Options Signals from Option Signal and ElY - Basic Rules!

• Refrain from trading before holidays, weekends and after them.
  For example: on Monday it is better to start trading in the late afternoon, and on Friday - to finish trading by 12:00 (Moscow time).
• Before trading, always check for economic news and important market events, as this can greatly affect the movement of the market.
  For example: do not trade 30 minutes before the release of the news and 30 minutes after it is released.
• Check price movement for flats.
  For example: if you see a flat on the price chart, wait for it to fall, and only then start trading.
• The initial investment on the signal should not exceed 3% of your deposit!

Before trading binary options:

Make sure you don't start trading 30 minutes before the release of the news and 30 minutes after the release of the news.

Optimal investments in binary options:

We recommend investing in a trade on a signal of 2-3% of the deposit, blocking losing trades by a maximum of 15-30% of the deposit. Consider an example: Your deposit with a broker is $100. You must invest $2, in case of a loss, open a trade in the same direction, increasing the initial investment by 2.5 times (about $5); the subsequent investment is $11 and on this we have reached our maximum.

How to properly cover losing trades in binary options?

There are two options for covering a losing trade, try both and choose which option suits you best.

1. after closing a losing trade, without waiting for a signal, open a new trade in the same direction.
2. wait for the sound signal and open a trade in the direction of the signal.

• Monday - since the market is after the weekend, then from 16:00 - 17:30 (Moscow time). — risk 60%;
• Tuesday - 12:00 - 17:00 (Moscow time);
• Wednesday - 12:00 - 17:00 (Moscow time);
• Thursday - 12:00 - 17:00 (Moscow time);
• Friday - trade before the market closes, from 10:00 - 12:00 (Moscow time) - 65% risk.

If you still trade at other times - be very careful and careful! Try not to trade during a pronounced trend.

The procedure for trading binary options on binary signals of the VIP cabinet.

Before trading:

Make sure you don't start trading 30 minutes before the release of the news and 30 minutes after the release of the news. After that, to receive signals for binary options from the service, you need to go to the "" tab and set up receiving signals. The picture below shows the binary signal settings for operation for 3 minutes.

After receiving the signal, it is necessary to open a deal according to the signal with an expiration for the third minute, i.e. for example, a signal to open a transaction on binary options was received at 10-00, therefore, the transaction must be opened before 10-03, or let's say the signal was received at 11-04, respectively, the transaction must be opened before 11-07.

In the case when the binary signal did not work on the first candle, we wait for the expiration of the transaction and enter the second candle using martin with the multiplication factor that can ensure the safety of your deposit and profit at the same time.

The quality of signals for binary options from the Optional Signals service is highly reliable and is working out:

• on the 1st candle in 40% of cases;
• on the 2nd candle in 40% of cases;
• on 3-5 candles in other cases.

Thanks to this method and experience, option signal reviews and option signal reviews have gained another plus in their piggy bank!

The video shows work on signals for binary options with an expiration of 3 minutes and a TF of 1 minute.

By visiting the network's forums, you can read a variety of posts regarding trading signals offered as a guide to action for subscribers of these signals. More often there are opinions about the unacceptability of such and their unreliability. Not so often, but you can find posts about the profitability of trading based on trading signals. And it is even rarer to read articles about a reasonable approach to such a phenomenon in the forex world as a subscription trading signal. Is there a clear answer to the question posed in the title? Most likely, there will be no unequivocal answer, and the emotional nature of a person and his greed are primarily to blame for this, which applies equally to both those who trade signals and those who subscribe to them. In my answer, I will proceed from such a concept as a trading system. In one of the posts on the forum it was expressed interesting idea about the fact that there are good traders among traders who produce quite good ones, but they: "... interfere with personal progression." Like it or not, let everyone answer for himself. But the fact that this phenomenon did not arise from scratch is an indisputable fact. There is no need to justify trading signals, but you should carefully consider the information based on them. Everyone in the course of their activity develops a trading system, and it is not at all excluded that those successfully trading traders with good signals produce them just on the basis of a well-developed trading system. At the same time, one should take into account the fact that any TS is limited in trading time. There are no trading systems that work infinitely profitably on the same currency pair, and therefore none of the trading systems can provide its owner with a lifetime stable income. Each TS, if you like, has its own "shelf life" when it provides the owner with sufficiently effective trading signals. It is precisely this “shelf life” and a certain number of transactions that the use of the TS is focused on. Why? Everything is very simple. When testing the vehicle, it gives the best result on a certain amount conducted transactions, and the trader is guided precisely by this period of time when he makes an attempt to trade on this TS. So, he can even control his emotions, limit his own greed. In the world of “beginners”, trading does not make sense. This trade seems to be a boundless ocean in which there are no time or event boundaries. There is only a desire to work hard, but over what? None of the newbies will answer you. That is why forex seems to be insidious and that is why it is often considered a total scam. In this case, even high-quality trading signals will not be able to help, since none of the novice traders will give an intelligible answer when he should exit the market and what, in fact, such a departure from himself is - for good or for a while? It is in this muddy sea that the rich emotional world of a person begins to appear, striving to use as many signals as possible to make another profit. The next profitable trade is followed by a losing trade, and soon the collapse of hopes, since neither the starting amount, nor the number of required trades, nor the time to exit the market with a profit have been verified. Thus, I would like each of those reading these lines to decide for himself: are those who trade trading signals guilty of troubles? Of course, behind many of them are people who simply want to cash in. However, some of them are really good, as they are based on very specific vehicles. But if a trader has his own trading system, then you should first of all think about whether your TS includes the ability to use third-party trading signals. If you can calmly listen to them, then do not lose sight of them. However, each such signal must be approached wisely and be able to listen. Not trading signals are to blame for the troubles of traders, but their thoughtless use.

The market is constantly giving traders hints. However, not all bidders are able to take advantage of such an outstretched helping hand. To do this, you need to have sufficient theoretical and practical knowledge that will help you timely see and correctly interpret a buy or sell signal.

We want to make a reservation right away that the methods below are equally applicable for each trading platform and investment asset. As practice shows, there is not much difference with what a trader works with. Classic trading signals are equally applicable for buying and selling stocks on the stock exchange, for trading currency pairs on Forex, for operations in the cryptocurrency market, and so on.

The growth and fall of investment asset quotes is chaotic only at first glance for an uninitiated layman. The exchange lives according to its own laws, relies on principles and follows trends.

At different intervals, the market generates signals that indicate the beginning of a bullish or bearish trend. In such a situation, the trader's task is formulated simply: to see such signs, correctly interpret and take actions to open a long or short position.

It is important to remember the high risks of stock trading. You should not rush into the pool with your head. Work according to the following scheme: form a hypothesis - open a position - set a stop loss.

In a situation where the assumption made is confirmed by practice, the trader finds himself in an ideal trading position. Long or short is opened at the very beginning of the trend and there is an opportunity to make a significant profit.

In a situation where the formed hypothesis turns out to be false, the open position is closed by stop. This helps to minimize losses.

We have finished with an important, but still introductory part on the topic under consideration. Now let's move on to specific signals. Similar signs are formed by indicators technical analysis, as well as candle formations or patterns.

Support and Resistance

In the course of trading in stocks or other assets, lines or levels are formed that do not allow the price to move freely up or down. Depending on the direction in question, they are called differently. The resistance line acts as a limiter for the upward movement, and the support line downwards. These are the basic concepts of technical analysis.

Trading near such lines can give a trader a reason to open a trading position. Moreover, it can be both a signal to buy and to sell an asset. It all depends on the behavior of quotes in a particular case.

Let's look at both situations separately.

Let's start with the resistance line. Approximation of quotes to such a price level is usually called testing. There are 2 possible scenarios for the development of events.

First, quotes break through the resistance line and rush up. The moment of such a breakdown is a signal to open a long position. Secondly, the price of the asset hits the support line, rebounds from it and rushes down. The moment of unsuccessful testing is a signal to open a long position.

One of the described situations is illustrated in the given section of the chart of ordinary shares of Sberbank. Quotes entered the price range with a resistance line of 201.96 rubles. After some time, testing of the designated level took place. However, it did not prove successful. Prices reached 201.85 rubles and turned down. This was a clear signal to open a short position.

Now let's look at the situation with the support line. Approaching prices to a similar level in trading is also called testing. Again, there are 2 options.

First, prices break through the support line and rush further down. This is a short signal. Secondly, prices are not able to overcome the resistance level, they repel it and bounce up. This is a signal to open a long position.

Again, let's resort to the section of the chart of ordinary shares of Sberbank. As you can see, prices again entered the range with a support line at a minimum of 190.11 rubles. Unsuccessful breakout attempts were made twice, when quotations for pips did not reach the considered level. But there were signals for a short-term purchase of shares, when prices bounced up. On the third attempt, the support line was overcome and traders got the opportunity to go short.

Moving average

This is one of the most popular technical analysis indicators used for trading. With the help of a moving average, a trader can receive both a signal to sell and buy an asset.

The moving average line is a graph of the arithmetic average price of the considered investment instrument (for example, a stock) for the set number of recent trading sessions. This indicator is simply configured for the tasks of the trader. To do this, it is enough to set the number of periods of interest in the settings, which exactly corresponds to the number of trading sessions taken into account.

With the help of a moving average, a trader is able to get a signal to open a particular position. When the price chart crosses the indicator line from the bottom up, then this is a reason to purchase an asset. And vice versa. When the price chart crosses the moving average from top to bottom, the trader should open short. When the indicator line consistently crosses the Japanese candlesticks one after another, then this is a reason to stay out of the market.

When using this technique, it is important to correctly set the number of periods for the moving average. A trader should start from his own style of work. If he trades in the short term, then a shorter period is indicated. If in the long term, then more.

Let's take an example. If a trader works on daily timeframes (D), then a classic moving average with a period of 200 can be used. For a market participant trading on hourly timeframes (H1), a line with a period of 12 or 24 is suitable.

Conclusion. The moving average is a simple and fairly reliable technical analysis indicator that you can use in your work.

MACD indicator

The technical analysis tool - Moving Average Convergence/Divergence (MACD) is used by traders to identify a bearish or bullish divergence signal. A number of trading strategies consider such a formation to be a sufficient argument for the acquisition or sale of an investment asset.

Let's look at the conditions that are necessary for a divergence signal. Let's start with a downtrend and a bullish formation.

For a bullish divergence to form, two conditions must exist. 1) The second considered price minimum on the trading chart of the asset should be located below the first one. 2) MACD histogram values ​​are below 0 and form an inverted saucer in which the second column under consideration must be shorter than the first. For a better understanding of this formation, take a look at the illustration below.

As you can see, a pronounced bullish divergence has formed in the considered section of the Magnit stock chart. This is a signal to buy an asset.

Let's look at the conditions necessary for a bearish divergence signal to form. It occurs on an uptrend.

For the formation of a bearish divergence, two conditions must also develop. 1) The second considered price maximum on the trading chart of the asset is located above the first one. 2) MACD histogram values ​​are above 0 and form a saucer, in which the second column under consideration must also be shorter than the first. Let's go back to illustration.

As you can see, a pronounced bearish divergence has formed on the presented section of the Moscow Exchange stock chart. This is a signal to sell the asset.

Awesome Oscillator (AO) indicator

This technical analysis tool is also capable of giving the trader a saucer signal. After receiving it, a long position or long position is opened.

This signal is able to form three columns of the Awesome Oscillator histogram, which are usually denoted by Latin letters a, b and c. In this case, column b should have a smaller positive value compared to columns a and c.
Let's turn to the trading chart of Magnit shares and consider a specific example.

This is one of the simplest decisions a trader can make when making trading decisions. Unfortunately, simplicity is not always good and justified.

RSI indicator

Relative strength index is another classic technical analysis tool used to get trading signals. Its undoubted advantages are the clarity and ease of interpretation of graphic data.

The RSI values ​​are calculated based on the increase and decrease in stock quotes of the asset in question for the set time interval.

As a result, traders got a curve that moves between two horizontal lines that serve as the border of the oversold (30) and overbought (70) zones.

As long as the indicator line is in the middle part of the instrument field, there are no signals. The intersection of the curve of the upper horizontal line indicates that the asset is overbought. And vice versa. The intersection of the curve of the lower horizontal line indicates that the asset is oversold.

Please note that such movements are not yet considered a sell or buy signal.

But when the curve returns from the overbought or oversold zone to the middle part of the field of the instrument in question, a signal is formed. It is considered to be worked out, that is, expired, after the RSI value exceeds 50.

As you can see, on the stock chart of the Moscow Exchange, the signals received from the RSI were processed in the near future after they were received.

Reversal figures

Technical analysis knows a huge number of reversal patterns that give traders signals to buy or sell stocks after. Now we will talk about the Double Top and Double Bottom formations. For more detailed information read the article Technical Analysis Patterns.

The double top is a chart pattern used in technical analysis. It is a classic example of a reversal pattern in a bullish trend.

On the chart, this pattern appears in a situation when quotes reach a certain value, in which a maximum is formed. Then prices go down. Then they turn around and go up again, but they are not able to break through the previously formed maximum. Thus, a double top appears on the chart - a signal symbolizing the possibility of selling the asset.

Double bottom reverse pattern. Occurs when there is a bearish trend and often marks the beginning of a reversal.
On the chart, there is such a formation when quotes reach a certain value, in which a minimum is formed. Then prices go up. Then they turn around and go down again, but they are not able to break through the previously formed low. Thus, a double bottom is drawn on the chart - a signal symbolizing the possibility of buying an asset.

On the above chart of MTS shares, a case with the formation of a Double Bottom figure is presented. As you can see, the moment of the formation of the pattern was ideal for buying the asset, so the signal did not let the traders down.

Candle formations

There are also a huge number of candlestick formations that give signals for action for traders. For example, in this article, we will look at bearish and bullish engulfing.

Absorption consists of 2 candles. The body of the first is completely within the range of the next candle. When a smaller candle symbolized a decrease in quotes, and a large increase, then we are dealing with bullish engulfing. And vice versa. If a smaller candle indicates an increase in quotes, and the next large one indicates a fall, then this is a bearish absorption.

Seeing such formations, the trader receives the appropriate trading signal. With a bullish absorption to buy an asset, with a bearish one - for sale.

Brief summary

Unfortunately, none of the existing signals gives a 100% guarantee of making a profit on a trade. Therefore, when making a trading decision, we recommend that you simultaneously be guided by the readings of several indicators, as well as pay attention to developing candlestick formations and technical analysis patterns.

Trading signals for binary options help the trader make decisions quickly, without having to spend time predicting the market and developing their own strategy. Signals are free and paid, even automatic systems have been created that trade instead of a person. Let's take a closer look at all types of signals and determine how to use them correctly for profitable trading.

Free signals for binary options online

Below are free online signals for currency pairs, stocks of all famous companies, indices and popular products from a reliable portal Investing. The signals are well suited for brokers and . To update the metrics, press F5 or CTRL + R.

Binary options signals for currency pairs.

Free trading signals for stocks.

Binary options signals for indices.

According to the test results, the best compatible broker for signal trading is FinMAX.

Live online signals for products

Add Signals Page to Favorites to always receive up-to-date signals. For this press the key combination CTRL + D

How to use trading signals online?

Signal " Actively buy" or " Buy” means to buy an option to increase “Up”. When receiving an online signal " Actively sell" or " Sell”, you need to buy a down option.

It is necessary to track trading signals on 5, 15 and 60 minute timeframes. Daily tracking is not necessary, unless you are trading long-term options with an expiration of more than one day. If the signals on all three timeframes are the same, for example, they show "Actively sell" or "Sell", then you should buy an option down with an expiration of 20-30 minutes.

As practice has shown, it is this expiration that allows you to make a profit, since in an hour, new news may come out and the signal will be opposite.

To better determine the time of the transaction, you must use. If you have a good signal at 18-40, and strong news comes out at 19-00, you should reduce the option expiration time to 18-50, i.e. buy an option for only 10 minutes. The recommended broker for using trading signals online is (No. 1 of ours) It is here that it is possible to set any expiration time with an accuracy of a minute, which you want from 1 minute to the end of the day. Present demo account for 10,000 rubles, you can test the signals for free.

Binary options trading signals together with indicators

To obtain more accurate forecasts, it is necessary to compare the above signals with the readings of the indicators.

You can use the indicators yourself by using them in the broker's terminal or on our website. You can use ready-made signals of the most popular indicators from the Investing service.

Best to use MACD, RSI, CCI, ADX and StochRSI. Detailed description indicators read in.

So the strategy Free Investing signals along with the indicator»:

• Choose the indicator you like, for example.
• See signals from Investing above at 5, 15 and 60 minute intervals. If they match, look at the MACD readings.
• If the MACD indicator gives the same signals (Buy - buy - up, Sell - sell - down) on timeframes of 5 and 15 minutes - buy an option with an expiration of 5 minutes. You can select a timeframe by clicking on the required interval, as shown in the figure.

Thus, online trading signals from the Investing portal are supported by signals from technical analysis indicators, which undoubtedly increases the number of accurate trade entries. Don't forget to refresh your browser page to receive new indicator signals (F5 key).

News signals for options

As noted above, you should not lose sight of the release of important news when you make trades in options. This is useful for choosing the right expiration time, as it is necessary to close the trade before the release of the next news. Otherwise, you risk losing profit - the news can radically change the direction of the price chart.

To keep abreast of events, be sure to view.


For the convenience of trading, we placed it next to.

News signals are the strongest - they can set a new long-term trend or change the direction of the current one. In the economic calendar you can see:

• news release time;
• currency of the country - it will be affected by the news in the first place;
• the importance of the upcoming news (maximum - three bulls);
• the name of the news or economic indicator itself;
• the previous value of the economic indicator;
• predicted value - forecast of global analytical agencies and their expectations;
• the actual value - appears after the release of the news.

Here for you the most important columns are importance, previous and predicted value. You just have to wait for the news release with two or three bulls.

If the appeared value of the indicator exceeded the previous and current value - there will be rapid growth and strengthening of the currency country for which the indicator was issued.

Online signals from brokers

Many brokers provide online binary options signals for free or subject to opening a certain type of account with the company. Signals can appear directly during trading on the broker's platform or be sent to email, by SMS.

In serious companies, there are analytical departments that study current situation in the market, forecasting future asset movements, advising and educating traders. In addition, analysts develop automated signal platforms and manually correct and filter signals to increase their accuracy. Not all companies unfortunately provide high-quality accurate signals. But there are leaders that we have tested for a long time, and their reliability is beyond doubt. Next, we will talk about proven signals of brokers.

FiNMAX - get signals from real traders

24option is the best broker with free signals and analytics

Private paid signals

On the Internet, an entire industry is busy offering online signals that can enrich anyone, as advertised. Offer to receive alerts via SMS, via mobile applications, to mail and even to personal messages on Vkontakte.

Be carefull! As a rule, they just want to make money on you.

It even happens that some signals are sent to one group of people, and the exact opposite is sent to another group. And as a result, one group manages to earn, and the second drains its money. Then the reviews from the “lucky group” appear on the Internet, and the participants even recommend the signal seller to their acquaintances and friends. So the seller is gaining new victims for himself and everything is repeated anew.

Beware of scammers and use only free online binary options signals. Good luck in trading!

Hello dear friends!

When working with RSI on history, the thought involuntarily arises that this oscillator can be used as a ready-made trading strategy. On a subconscious level, you notice the pivot points, correlate them with the oscillator, and it seems that the indicator is flawless. By itself, the relative strength index is a useful tool, but is it possible to trade only on its signals?

Looking ahead, I will say that the RSI is mainly used as a filter in trading systems, for example, to find the end point of the correction. It can be integrated into any TS: both indicator and strategy based on graphical analysis. As an example, I will give Sniper, the trading system is completely built on the reaction of the chart to the levels, RSI can be added to it to confirm the rebound from support or resistance.

For the Sniper, we are now giving away a training course for free. You can download it from the link above.

Introduction to the oscillator

It was developed by Wells Wilder, an interesting personality. He did not come into trading right away, before that he worked for a long time as a mechanic and engineer, but at the same time he tried to speculate on the stock exchange and achieved considerable success in this.

The official date of birth of the RSI can be considered 1978, in a book about new concepts in trading, Wilder first mentioned the relative strength index. The development turned out to be so successful and useful that now this indicator is included in all trading terminals without exception.

Initially, the indicator was created to determine the state of the market. By the position of the line, it was possible to judge whether the asset was oversold or overbought. Over the decades, traders have come up with a number of other ways to use it. The video below shows how to use it.

Appearance and configuration of RSI

You do not need to install it in the trading terminal. You can find RSI in the section with oscillators, it is displayed on the chart in the "basement", it consists of one line.

Appearance of the Relative Strength Index

Since it is an oscillator, its values ​​will never go beyond the 0-100 range. In the figure above, levels 20 and 80 are added, these are the boundaries of the oversold and overbought zones, respectively. Level 50 in trading is sometimes used to determine the priority direction of chart movement.

As for the settings, you can change:

• period value. Wilder used a 14-day RSI, so the default period is exactly 14. Since the indicator can be used not only on daily charts, but the market has changed a lot, I recommend choosing the period yourself;
• the position of the boundaries of the oversold and overbought zones. For low volatility assets, you can set them equal to 30 and 70 or even 40 and 60, respectively. For highly volatile currency pairs - 20 and 80;
• you can also add arbitrary levels and customize the display of the oscillator on different timeframes.

RSI Settings

As for the selection of the period, it usually ranges from 5 to 20. You need to change the period until the peaks on the chart mostly correspond to the RSI reversal and its exit beyond the zones.

Selection of RSI parameters

If desired, you can independently adjust the position of the oversold and overbought levels. To do this, you need to reduce the scale of the chart and manually build horizontal levels so that the oscillator line rarely enters the zones, during strong movements.

An example of manual construction of oversold and overbought levels

What signals should be taken into work

Wilder worked mainly with oversold and overbought zones, then the market was not so volatile and the 14-day RSI gave good signals. I will single out 4 methods of using the oscillator in work.

Classic Signals

We are talking about oversold and overbought zones, the signal is the exit of the line from them. Crossing the border of the overbought zone from top to bottom is a reason to look for entry points for selling, crossing the border of the oversold zone from bottom to top is a warning about a possible upward movement.

An example of processing signals of this type

With a strong trend within shallow corrections, the oscillator line can go beyond the zones, but then it returns to them anyway. Beginners are often caught by such false signals and take a series of losses, entering against the trend. That is why you cannot use this type of signals as the only basis for making a deal.

Example of false signals with RSI

This type of signal goes well with graphical analysis. For example, a rebound from a trend line, horizontal level, Fibo level.

The Fibonacci grid signal is confirmed by the exit of the RSI line from the oversold zone

Crossing level 50

This level is not included in the standard level, it is used only as an additional signal in trading. It serves as a kind of watershed, it is believed that if the oscillator line crossed it, for example, from the bottom up, then an upward movement is more likely. If the indicator is above the 50 line, buying is in priority.

You can use this approach as a confirmation of the truth of the breakdown of trend lines and support and resistance levels. If the breakdown almost coincided with the oscillator crossing the 50 mark, there is a high probability that it is true.

Right now, there was a break of the support line, and it was confirmed by the break of the 50 level on the RSI

Divergences

This type of signal appears not only on the RSI, but also on other oscillators, for example, on the Stochastic, the commodity channel index. It can form before a market reversal or before a correction begins.

Examples of completed divergences

The formation of a divergence cannot be considered a guarantee of a market reversal. Moreover, if it was formed on a strong trend and after that the chart went into a flat state, this is considered a confirmation of the trend. Most likely, the market reversal will not take place in such a situation.

After a small flat, growth continued in both cases

As in the case with the previous signals, divergences need confirmation. Practice shows that if you work only on them, the deposit will not grow.

Methods of graphical analysis on RSI

Few know, but directly on the oscillator, you can perform graphical constructions and even look for graphical patterns. The principle is the same as when working with the price chart, only you will have to work with the line of the relative strength index.

You can work on the breakdown of trend lines and horizontal levels on the RSI. Sometimes this gives a more profitable entry point, sometimes there is no moment for making a deal on the chart at all, but there is a signal on the RSI.

A sell signal was received after the breakdown of the support line on the RSI

As far as chart patterns are concerned, double bottoms and tops are most often formed. Less often - triangles, pennants, head and shoulders, flags.

A flag + ABC pattern has formed on the RSI, this pattern is almost invisible on the chart

This is not the most common way to apply RSI. Again, do not use it as a ready-made trading strategy.

RSI testing

It is time to move from theory to practice. Today we are looking into whether it is possible to earn money by trading only on RSI signals with a period of 14. The initial deposit is $10,000, we will trade with a fixed lot of 1.0.

We will use the 2 most popular oscillator signals for work:

• exit from zones (values ​​70 and 30 are used);
• divergences formed in the oversold and overbought zones. To enter on divergences, the fractal indicator is used. That is, we consider that the divergence is formed after the fractal is formed, indicating the last extremum.

Additional input filters are not used. The test is carried out from the beginning of May to July 2018 in the MT4 tester, EURUSD currency pair, H1 timeframe.

Trading results on RSI for 2 months

The results were as expected:

• the maximum drawdown for this period was 37.75%;
• the deposit decreased by $1897.69;
• win rate is only 23.53%. This is explained by the fact that many countertrend signals appeared on the RSI, we did not filter them, hence the series of false market entries.

conclusions

The main conclusion is that RSI cannot be considered as an independent trading strategy. If you don't believe me, check out the 2-month test in the MT4 strategy tester.

On a longer time period, the situation may even out a little, but it will not be possible to consistently earn money only on RSI signals. At best, you will work with near-zero profit. Losses on trend movements will be offset by profits during a flat, oscillators work well on these market segments.

This does not mean that the RSI is a bad indicator or that it has already worked its way out and it is time to put it to rest. It's just that the author had a different goal, Wilder, when developing the RSI, wanted to get a filter for opening deals, and in this role, the relative strength index works perfectly.

I recommend trying to integrate this oscillator into your trading strategy as another confirmation of the received signal. Good results were obtained from my students, who combined elements of the Sniper with RSI signals. You can study the rules of the strategy at the link below, so experiment, you can get an excellent vehicle with zero costs.

In conclusion, I want to remind you that no matter how great the results look in history, they must be verified in real conditions. So do not be too lazy to open a cent account and trade on it for at least 1-2 months.

On this I say goodbye to you, until we meet again and profitable trading for you!