The Setup:
Using your MT4 trading platform add the following indicators to a M15 chart
- RSI - Relative Strength Index ( 7 )
- ADX - Average Directional Movement Index ( 20 )
- Volume
The Entry:
Place a CALL/BUY Option when, at the close of the candle, the RSI is below 30, the ADX is below 20 and the Volume Bar is lower than the previous volume bar. Ideally you want the volume bar to appear right after a high volume bar and not 2 or 3 bars later. Expiry is 15 Minutes.
Place a PUT/SELL Option when, at the close of the candle, the RSI is above 70, the ADX is below 20 and the Volume Bar is lower then the previous volume bar. Ideally you want the volume bar to appear right after a high volume bar and not 2 or 3 bars later. Expiry is 15 Minutes.
Very Important:
This is where the 20% Price Action comes into play. Always check for clear Support and Resistance, ie: If the entry criteria for a CALL/BUY Option is met and the price is above an identified support zone then place the trade. If the price has moved through the support zone then do not enter the trade. The same goes for PUT/SELL Options.