After getting familiar with the IQ Option interface and practicing Demo trading for a while, you are probably looking for a suitable trading method to make money in IQ Option. This article shares with you a trading strategy with Out Band candlestick. This is a simple strategy, but its winning rate is very high.
How to trade with Out Band candlestick strategy
How to set up Bollinger Bands
Due to the strategy around the Bollinger Bands indicator, first of all, you need to know how to set up it.
To use the Bollinger Bands indicator in IQ Option: (1) Select Indicator (2) Tab Volatility (3) Select Bollinger Bands.
You can customize the settings to suit your style. The default settings of Bollinger bands are period 14 and standard deviation 2.
Once you have set the Bollinger Bands indicator, the trading interface will be as follows.
How Bollinger Bands work
Most of the time, the price moves within the band. According to the statistics, it is about 80%. The remaining 20% is when the price is active outside the band. Based on that, we create a simple Out Band candlestick strategy with a high probability of winning.
Bollinger Band consists of 3 lines:
- Upper band (Red).
- Middle band is also known as the Moving Average (Orange).
- Lower band (Yellow).
How to enter a trade when the Out Band candlestick appears
When the price moves beyond the upper band, it is time to focus on opening a Down trade. If the candle closes outside the upper band right there will be the entry point to the LOWER order. Conversely, when the price breaks the lower band and closes the candle outside the band, it is time to place a HIGHER order.
This is the simplest trading strategy for beginners that is also trusted by experienced traders. Let’s experience this strategy with your DEMO account. If you have a high win rate, put it in the list of IQ Option winning trading strategies that are most suitable for yourself.