The financial market is so complicated sometimes with all the trends, higher lows, lower highs, interest Rates, Earnings reports…that sometimes I wonder why I chose this line of work.

And then it immediately hits me: But to continue I need a good strategy, right? With that in mind, I will start explaining the strategy:.

I am referring to the Relative Strength Index RSI and Stochastic Oscillator; you can find them as built in indicators for the Meta Trader 4 platform. But the most interesting thing about this strategy is that it uses the two indicators on different time frames: The RSI on the four hour chart will show us the main price direction and the Stochastic will give us the actual trade signal.

The red vertical lines on the 15 minute time frame are all Call signals and they are all taken during the period when the RSI was above the 50 level on the H4 time frame. Although the principle behind the system is one of my favorites, the Stochastic signal can be sometimes late or even false; same thing is true for RSI: The system could be hard to grasp for a beginner because it takes a lot of discipline to wait for the H4 RSI to line up and only trade in that direction.

This system makes us pay attention to the big picture, to what happens on the higher time frames and filters out a lot of noise. The Stochastic settings and even the ones for the Relative Strength Index can be adjusted to suit your own style and increase the amount of signals or decrease them. No system is perfect and neither is this one.

I think all you need is a decently performing system that fits your style and one that you can follow with discipline. For more information about the multiple time frame system visit our forum here. That would mean the RSI is in overbought territory. So a RSI above 70 would invalidate any long signal. Does it matter what direction the RSI is pointed or heading? Is it a valid signal as long as the RSI is on the correct side of 50?

So for a call, if the RSI would be above 50 and pointing up, i would consider it a stronger signal. I have only one question…When we see these to conditional indicators to match in our binary broker wich expiry we have to choose?

One that expires in 15 minutes or in a hour? I am a little bit confused with expiry times, So sorry for being a little bit blunt. My broker is using 10 minutes time frames, so to implement this strategy I should look at 10 minutes charts for signal from stochastic right? So what expiry should I use? For question regarding brokers — Please use our Forums. Hylton Glass on BigOption.

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