Strategy for the binary options broker Quotex - Donchian channel
The described strategy for binary options is based on Donchian channels. This indicator shows the highs and lows of the price for a set period of time, and also serves as support and resistance level. Visually, the tool resembles Bollinger Bands, but a different principle applies here. In Dolcian channels, price does not go beyond the range set of the three lines. In addition, the indicator does not use moving averages.
Setting up indicators on the Quotex broker platform
You can use a period of 20 to trade on this strategy. Usually this parameter is set in the Donchian channel by default. The basic settings have an uncomfortable color combination, so we changed them at our discretion:
- The top line is orange;
- The middle line is green;
- The bottom line is red;
- The background of the channel is purple.
We recommend working on the 5-minute chart and making trades with an expiration time of 15 minutes.
Conditions for entering a trade on the Quotex broker platform
The strategy is easy to understand for beginner traders, and trading signals occur quite often.
You can enter an up trade under the following conditions:
- The price and the midline moves up, the candlesticks are above the midline - an uptrend;
- The price bounced up from the center line of the channel.
The signal to open a down trade is:
- The price and the midline moves down, the candlesticks are below the midline - a downtrend;
- The price bounced down from the center line of the channel.
We do not recommend opening trades with a strong narrowing of the channel line, as this behavior indicates a possible change in the direction of the trend.