Binary Options Indicators Which ones to use Binary Options 2020

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Two Powerful Trading Indicators, and How I Use Them

Price is the ultimate indicator. Regardless of what indicator you use, it won’t tell you more than the actual price movement itself, because all indicators are derived from price. I prefer to trade without binary options indicators, since the price itself is what I trade. With that said, indicators do present price information in a different way, which can help us isolate moves or underlying strength or weakness we not see on the price chart. While I generally trade indicator free, but here are my two favorite indicators which I do use on occasion to clarify moves, hone in on high probability trades and help filter out the bad ones.

Average True Range (ATR)

By far the indicator I use the most. Simply put, ATR is the amount an asset moves in the day.

The indicator takes an average over a number of days (or bars), such as 10 or 20, to give you a representation of daily price movement of the asset. The average is based on the largest following number: Current High minus Current Low, Current High minus Previous Close or Current Low minus Previous Close. Luckily the indicator tool within your trading platform will calculate this all for you, so all you have to is look at the current indicator reading.

Figure 1. EUR/USD Daily with ATR

Source: Oanda – MetaTrader

Figure 1 shows the ATR over ten days–shown as “ATR (10)”– for the EUR/USD on Daily bars. Therefore, the current reading of 0.0099 means the EUR/USD is moving on average 99 pips per day. If you used a 5 minute chart, the reading you get would be a 10 period average of how much the EUR/USD moves in a 5 minute period.

So how does this reading help you make better trades? Assume it is near the end of the day, and the EUR/USD has already moved up 140 pips on the day and you want to take a long trade. Do you take it?

Maybe, but only if you believe something important is going on. Since the average daily movement is about 99 pips, it is quite likely that the EUR/USD is bit overextended (at 140 pips), having already moved well beyond average. That is not too say that if you go long/buy calls you won’t make money, but it does make you sit back and examine the trade to make sure it is worth taking.

I generally use this indicator as a filter. While wide ranging days happen (much larger than average), I like to trade based on statistics. If I get a signal to go long or short on an intra-day trade, and the asset has already moved well beyond the average, I will usually skip it and look for another trade which has more room to run.

Relative Strength Index (RSI)

Known as an oscillator, this indicator fluctuates between 0 and 100 and measures the speed and change of price. If you have watched business news or read some technical comments from traders, you will often hear the words “Overbought” or “Oversold.” While the speaker may be addressing something else, often technical analysts are referring to the current RSI reading when they use these words. A reading above 70 is typically overbought, while below 30 is oversold. Once an asset enters these area, a reversal is usually not far off.

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But to me, timing is important and therefore standard overbought/oversold RSI readings are pretty much useless. For one, in a strong uptrend, the reading will be frequently above 70, but yet you want to be long most of the time. Same goes for a downtrend; the RSI will frequent the area below 30 and yet you want to be short/buying puts during downtrends.

I prefer to use the RSI in a “relative” fashion; comparing current RSI readings in uptrends to past uptrends, and current RSI readings in downtrends to past downtrends. This concept comes from Constance Brown’s book Technical Analysis for the Trading Professional. What the author finds is that in downtrends the RSI generally stays below 60, and that in uptrends it generally stays above 40.

Figure 2. EUR/USD 4 Hour Chart

Source: Oanda – MetaTrader

In figure 2, notice how the RSI shifts; during the downtrend it often touches below 40 and rarely gets above 60 (red line). But when the trend moves higher toward the right hand side of the chart, the RSI doesn’t move below 40 (green line) and spends much of the time above 60.

This is an excellent method for confirming trends, although some tolerance is often required. The RSI may squeak just beyond the levels mentioned, or the levels used may vary slightly by asset.

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Indicators are derivatives of price. Generally I do not use indicators very much, as I prefer just to look at the actual price chart. Indicators can only provide this same price information, but may present it visually in a way that is preferable, or summarize the data for easier use. ATR is one such summarizing tool. It quickly gives you a number–the daily average range–you can work with. If an asset has moved well beyond its daily average range, it’s possible something important is happening, but more often than not I find the trade should simple be skipped if it requires the asset move even further.

The RSI presents price information in a different way, which can be quite useful for confirming trends or catching trend reversals. The RSI has different tendencies during downtrends than it does during uptrends. Typically in a downtrend the RSI stays below 60, and in uptrend stays above 40. When you notice the RSI shift from one tendency to another, the trend has likely reversed.

Binary Options Indicators: Which ones to use?

A website called best meta trader indicators has published the results of a public poll. This poll’s question was: „What’s your favorite forex indicator?“ and it’s had more than a few thousand replies! That is quite a big number!

The results are pretty interesting and surprising (for me at least) and we will talk about it in today’s article. So get ready and let’s get straight into it.

Forex OR Binary Options indicators?

This website is mainly about binary options and their strategies, and this article and poll are about forex – that’s true. Both are two different things, however they follow the same principles.

Is the price going to go UP or DOWN?

That’s why we can use the same indicators in forex and binary options.

Download these binary options indicators for MT4

Most of these indicators are already installed in MT4 by default. But just to make sure, I have uploaded them for you. You can download them from the link below.

The most favorite binary options indicators.rar ►Download

The most favorite binary options indicator

According to the result’s of the poll, the most favorite binary options indicator is, with 5385 votes, the MACD (Moving Average Convergence Divergence.) This comes as a little surprise, as my personal guess was the the most favorite would be Moving Average or Bollinger Bands.

The full results can be found below. First comes the indicator’s name, the number in the brackets is the amount of votes received in the poll:

  • MACD (5,385)
  • RSI (4,310)
  • Bollinger Bands (4,126)
  • Moving Average (3,967)
  • Stochastic Oscillator (3,523)
  • Fibonacci Retracements (3,348)
  • Other (2,574)
  • Supertrend (2,487)
  • Ichimoku Kinko Hyo (2,484)
  • CCI (1,988)
  • Parabolic SAR (1,393)
  • Trix (1,065)
  • Donchian Channel (969)
  • Williams %R (920)
  • Keltner Channel (895)
  • Momentum (772)
  • On-balance volume (568)
  • Envelopes (500)

Strategies with these indicators

Many strategies published on this website are using one or more of these favorite indicators. You can find a few of them below.

Binary Options Fibonacci Strategy

The fibonacci retracement tool is probably the least understood, especially among the new traders. They hardly realize about the importance of having this tool by their side in order to take their trading to the next level. Retracements are one of the most prominent elements of any uptrend; therefore developing a trading strategy around this phenomenon

Binary Options ‘3’ Strategy That Works + Video

While we go haywire finding a reliable trading system, we tend to miss out on the obvious. Three indicators strategy ensures high potential profits as it produces exact entry signals confirmed by 3 indicators. Moreover, it can be used with all sorts of currency pairs. This strategy that works is based on three of the most popular indicators – RSI, MA, Stochastic

BBand Stop binary option strategy

BBand Stop Strategy is a 5 minute binary option trade strategy which uses BBand Stop alert indicator in MT4 to define ideal position to enter the trade. This indicator is used along with the Bollinger Bands. How to setup the chart Timeframe: M5 Template: BBand Stop Strategy (Download here: eDisk or UlozTo.Net) How does this strategy work Arrows (pointing up and down) will be displayed over/under

Golden Eye – Trading strategy with 80 % success rate

Golden Eye is a strategy based on the ADX indicator (what is an ADX indicator?) which is used for confirming rebounds. This strategy works well with with M15 timeframe and the trades which are opened for 60 minutes (in direction of longterm trend) or for 30 minutes (against the trend).

I have had a pretty nice profit with this strategy.

I hope I have helped you, good luck with trading!

Binary Options Indicators

Different indicators for MT4 available for download

Alarm4U

Indicator ALARM4U will enable you to set up pop up notifications,when the price will be moving closer to trend, horizontal, vertical or fibonacci lines set up by us. Instructions here.

P4L Candle Time

This simple, easily comprehensible and useful indicator that will, after adding it, draw next to the actual candle a time that’s left until the candle expires, which is always useful, especially if you trade with TopOption or 24Option, because these brokers don’t offer trades that expiry in a certain time, but they expire at a certain time. Instead of 15 minute expiration, you can also have 20 or even 7 minute one.

TS_Market Price

This is another indicator that rather then helping us with the trade itself, it makes our work and orientation in a graph easier. Its main and only use is – to show actual price of an asset in big and visible letters, not the tiny little once that can be found in mt4 from the beginning. Really, don’t expect anything else than clarity and simplification.

ADX_varSmz_+DI-DI

Indicator ADX varSmz will draw ADX curves that are used to determine the strength of a current trend and its possible shift. More information on how ADX works can be found here: http://stockcharts.com/

Color Stochastic

Stochastic is an indicator(oscilator) that shows when the market has a tendency to shift. Its value ranges between 0 and 100. If the curve is above 80 it means that the market is overbought and has a tendency to shift and vice versa, if its below 20 the market has a tendency to turn higher.

More binary options indicators

Which binary options indicators are the best? Which ones do people like the most? Let us know in the comment section below!

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