BB1 Bollinger Bands Strategy ๐Ÿ˜Ž๐Ÿ“ˆ


Key Takeaways๐Ÿ”‘

โ†’The BB1 strategy focuses on Bollinger Bands with a deviation of 1 for 5-minute charts.
โ†’This strategy is best suited for trending markets and provides clear trading signals.
โ†’Practice the BB1 strategy on a demo account before using it on a live trading account.

Introduction

You may already be familiar with Bollinger Bands. In this article, we’ll explore an unconventional way to use Bollinger Bands, known as the BB1 strategy, specifically designed for 5-minute charts. If you’re new to Bollinger Bands, we recommend reading our article on Bollinger Bands first.

Bollinger Band Settings for 5-Minute Chart

To set up the BB1 strategy, log in to your account, choose an asset, and decide on the amount of money you want to invest. Select the Japanese candlesticks chart type, then click on the indicators icon and search for Bollinger Bands.

Modify the deviation setting to 1, which is where the strategy gets its name – the BB1 strategy.

Bollinger Bands settings for 5-minute chart

The Bollinger Bands indicator has three lines: the central one is the Simple Moving Average, and the other two create lower and upper bands.

A comparison of BBands with different settings

Trading with the BB1 Strategy on IQ Option

Trading with the BB1 strategy is not complex. Observe the chart and wait for signals.

Opening Short Trades with the BB1

A signal to enter a short trade occurs when a candle closes below the lower line of the indicator. The previous two candles should close above the lower band.

A BB1 Strategy signal to go short

Opening Long Trades with the BB1

For a long position, wait for a candlestick to close above the upper border of the Bollinger Bands. The two previous bars should close below the upper band.

A BB1 Strategy signal to go long

Pros and Cons of the BB1 Strategy ๐Ÿ˜Š๐Ÿ™

Pros:

  • Easy to understand and implement
  • Works well in trending markets
  • Provides clear entry signals

Cons:

  • May not work well in ranging or flat markets
  • Requires constant monitoring of the chart for signals
BB1 Strategy Details
Bollinger Band Deviation 1
Chart Timeframe 5 minutes
Expiration Time 15 minutes (approximately three times the chart timeframe)
Ideal Market Condition Trending markets
Practice Use a demo account before moving to a live account

What is the BB1 strategy?

The BB1 strategy is a trading strategy based on Bollinger Bands with a deviation of 1, specifically designed for 5-minute charts.

How do I set up the BB1 strategy on the IQ Option platform?

To set up the BB1 strategy, log in to your IQ Option account, select an asset, and choose the Japanese candlesticks chart type. Click on the indicators icon and search for Bollinger Bands. Modify the deviation setting to 1.

How long should the expiration time be for the BB1 strategy?

The expiration time should be set for around 15 minutes, which is approximately three times the chart timeframe (5 minutes).

How do I identify a signal to open a short trade with the BB1 strategy?

A4: A signal to enter a short trade occurs when a candle closes below the lower line of the Bollinger Bands indicator, and the previous two candles close above the lower band.

How do I identify a signal to open a long trade with the BB1 strategy?

For a long position, wait for a candlestick to close above the upper border of the Bollinger Bands. The two previous bars should close below the upper band.

Conclusion

The BB1 strategy is an unconventional way to use Bollinger Bands on 5-minute charts, focusing on a deviation of 1. This strategy works well in trending markets, providing clear trading signals. Practice the BB1 strategy using the IQ Option demo account before moving to a live account.

Wish you great success! ๐Ÿš€๐Ÿ’ฐ

BB1 Strategy: Frequently Asked Questions ๐Ÿ’ก

  • Q1: What is the key difference between the BB1 strategy and the conventional use of Bollinger Bands?
    • A1: The BB1 strategy uses a deviation of 1, which is lower than the standard deviation of 2 commonly used in conventional Bollinger Bands trading.
  • Q2: Can the BB1 strategy be used on other timeframes?
    • A2: The BB1 strategy is specifically designed for 5-minute charts, but traders may experiment with other timeframes, keeping in mind that its effectiveness may vary.
  • Q3: Can the BB1 strategy be used for trading other financial instruments?
    • A3: Although this article focuses on the application of the BB1 strategy for binary options trading, it may also be applied to other financial instruments such as Forex, stocks, and cryptocurrencies, with varying degrees of success.
  • Q4: How can a trader improve the effectiveness of the BB1 strategy?
    • A4: Traders can improve the effectiveness of the BB1 strategy by combining it with other technical indicators, such as the RSI or MACD, to confirm the signals generated by the Bollinger Bands.
  • Q5: Are there any alternatives to the BB1 strategy for trading with Bollinger Bands?
    • A5: Yes, there are many alternative Bollinger Band trading strategies, such as the Bollinger Bands Squeeze or Bollinger Bands and Stochastic strategy. Traders should explore these strategies to find the one that best suits their trading style and market conditions.

GENERAL RISK WARNING

The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.
Kindly note that this article does not provide any investment advice. The information presented regarding past events or potential future developments is solely an opinion and cannot be guaranteed as factual, including the provided examples. We caution readers accordingly.

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Bart Bregman

Author / IQ Option expert: "My name is Bart Bregman, I have 9 years of full-time professional trading experience. I've been trading with IQ Option for more than 7 years, mainly on the shorter time frames doing technical analyses, and have many experience with Binary Options, CFDs, Options, and Crypto trading. There is no such thing as a bad trade! As a digital nomad trader, I'm mostly traveling all over the world. Follow my journey on Instagram at https://www.instagram.com/bart_bregman/. "

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