Transitioning from binary options to stock trading? You’ve already got the mindset and timing instincts — now you just need the right tools.

In this post, we’ll explore 3 simple, rule-based strategies designed for traders who are used to fast decisions and clean setups. These strategies use indicators you’re already familiar with: MACD, RSI, and Bollinger Bands.

Each strategy includes entry rules, stop-loss, take-profit, and risk tips — so you can start testing today.

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1. MACD Momentum Crossover Strategy

The MACD crossover strategy is great for spotting trend shifts with confirmation.

Indicators:

• MACD (12,26,9)
• 50-period Simple Moving Average (SMA)

Buy Signal:

• MACD line crosses above the Signal line
• Price is above the 50 SMA
• Confirm with a green candle closing above previous high

Sell Signal:

• MACD line crosses below the Signal line
• Price is below the 50 SMA
• Confirm with a red candle closing below previous low

Stop-Loss & Take-Profit:

• SL: Below the last swing low (or 1x ATR)
• TP: 2x risk amount or next resistance zone

Tip:

Don’t trade during sideways MACD. Wait for clear separation between MACD and Signal line.

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2. RSI Bounce from Oversold (Reversal Strategy)

Perfect for binary traders who are good at picking quick reversals.

Indicators:

• RSI (14)
• Horizontal support/resistance lines (manual)

Buy Signal:

• RSI drops below 30, then rises above 30
• Price bounces off clear support zone

Sell Signal:

• RSI goes above 70, then drops below 70
• Price rejects resistance zone

Stop-Loss & Take-Profit:

• SL: Just below/above the S/R zone
• TP: 1.5x to 2x risk or back to middle range

Tip:

Works best when the market is range-bound. Avoid during strong trending markets.

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3. Bollinger Band Squeeze Breakout

This strategy catches breakouts after low volatility — ideal for traders who like setups with defined entry and exit.

Indicators:

• Bollinger Bands (20,2)
• Volume (optional but helpful)

Buy Signal:

• Bollinger Bands narrow (squeeze)
• Price breaks above upper band with strong candle
• Confirm with increasing volume

Sell Signal:

• Bollinger Bands narrow
• Price breaks below lower band with strong candle
• Confirm with increasing volume

Stop-Loss & Take-Profit:

• SL: Below/above the opposite side of the squeeze range
• TP: 1.5x to 2x the size of the squeeze range

Tip:

Check the economic calendar — news can fake out breakouts. Wait for confirmation candle to close.

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News & Volatility Warning

All three strategies work best in normal conditions. If major news is due (like earnings, inflation reports, Fed speeches), expect:

• More false signals
• Wider candles = bigger stop losses
• Delayed reactions (especially with RSI)

Solution: Avoid entries 15–30 minutes before/after big news. Or switch to a breakout-based plan and reduce size.

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Final Thoughts

Binary traders have the instincts to succeed — but trading stocks gives you more flexibility and reward potential. These 3 strategies are simple, visual, and built for precision timing.

Start with one. Backtest it. Then tweak and refine.

Next up in the series: we’ll talk about how to trade earnings news and major economic events — without getting wrecked by volatility.