Introduction

The RSI TREND binary options trading strategy generates signals based on Trend Lines and RSI with 70% to 75% win rate. This strategy is designed to work with 10min expiry time, although you may use other expiry times as well. To do so, switch the asset chart to the desirable time frame and select the option expiry time accordingly.

Key Features

Difficulty Level 65%
Expiry Time 10min
Strategy Type Indicators
Win Rate 70%-75%
Key Tools RSI, Trend Lines

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1 Open an Account to Start Using This Strategy

2 Set up Your Chart

Open Tradingview.com to start trading with the RSI TREND Strategy.


Open Tradingview.com >

Select the asset you want to trade.

Switch to 1 minute time frame.

3 Apply the Indicators to Your Chart

Add the following technical indicators:

  • RSI (Relative Strength Index). Draw the Trend Lines for the RSI:
  • If the market trend is rising, draw a trend line through the lows (an uptrend)
  • If the market trend is falling, draw a trend line through the highs (a downtrend)

Here is how your chart will look like when you apply the indicators:

4 Get Trading Signals

CALL Signal

  1. The RSI line goes down, and then reverses and breaks the downtrend though.
  2. In case the RSI line touches the downtrend a few times (see the circles on the chart) before breaking it through, this gives you a stronger signal.
  3. In case the RSI line goes well above the downtrend after breaking it through, this gives you a stronger signal.
  4. Once you've got these signals, wait for the current candle to close and buy a CALL option.

PUT Signal

  1. The RSI line goes up, and then reverses and breaks the uptrend though.
  2. In case the RSI line touches the uptrend a few times (see the circles on the chart) before breaking it through, this gives you a stronger signal.
  3. In case the RSI line goes well below the uptrend after breaking it through, this gives you a stronger signal.
  4. Once you've got these signals, wait for the current candle to close and buy a PUT option.

NOTE: This strategy will not work at times when the RSI is not trending.

5 Select Assets, Options, and Expiry Times

This strategy works well with volatile instruments, such as Forex currency pairs. Trade regular binary options with 10 or 15-minute expiry times.

Money Management Rules

As a binary options trader, you should always keep the risks in mind. This is why your investment amount should not exceed 2% of your account balance. Despite all our strategies being quite effective (around 65%-75% win rate), you should still stick to that 2% rule. To comply with this rule, however, you need to have an appropriate account balance, which should be at least 50 times bigger than the minimum investment amount allowed by the broker. To minimize your risks, you may want to check out our Binary Options Trading Risk Management article.

More on Risk Management