Best indicators for binary options

In recent years, binary options have become increasingly popular. Many players who previously traded only stocks and bonds are trying their hand in this new direction. What is causing this? There are many reasons, among them ease of understanding, low entry threshold, always known risks, high profitability.

When choosing exchange-traded assets, a participant uses two main types of situational analysis - fundamental and technical.

Popular indicators for chart analysis
Popular indicators for chart analysis

These two approaches are fundamentally different from each other in terms of information processing methods:

  1. Fundamental analysis is based on the study of micro- and macroeconomic news, current events in the political life of your country and the international community (increased supply and demand, investment climate change, financial statements of companies, conflicts). Based on a comprehensive assessment of all these events occurring in real time, the player tries to predict how they will all affect the market for specific assets, and where the price for them will go - up or down.

  2. Technical (graphical) analysis is based on the past, i.e. market movement statistics for previous periods, reflected in charts. By carefully studying the history of prices for different time periods, you can find recurring trends that will help you make the right decision. Adepts of technical analysis argue that it is better than the fundamental one in that all the political and economic events that have taken place have already been taken into account in the historical fluctuations of the graphs.

Graphical and technical indexes types of market research are universal and differ in that they are equally well applicable to completely different assets: raw materials, indices, currency pairs, futures, stocks and binary options.

A graph is the most informative and human-readable way of presenting information in time. There are many of them, but three are commonly used in the binary options market:

  1. Candlestick. Most popular and informative. Each candlestick is an indicator of price changes for the selected time period; it can be used to determine the opening and closing prices, as well as the maximum and minimum cost.

  2. Linear. The simplest one, you cannot see additional data on it, like on a candlestick, but you can instantly understand the direction of movement of an asset. The line chart is drawn only at the close price of each timeframe.

  3. Bars. They contain the same information as candles, but the visualization is fundamentally different. 

Let's take a look at some of the very best binary options indicators that you can use to your advantage. Because they offer you a wealth of information for any trader.

Moving Average. It is used to classify market conditions (trend / flat), as well as to assess the strength of the trend.

In the options market, Moving Average can be found on any trading platform that supports technical indexes.

Binary options - the choice is yours
Binary options - the choice is yours

MACD is considered the best binary options indicator for choosing entry and exit trading points. It is able to signal a change in short-term trends to long-term ones, overbought / oversold, convergence / divergence. MACD will allow making successful trades, while false signals, unlike the standard MA, the system generates much less. As an effective oscillator, it will help you find out in which direction the price line will move, its strength, and the possibility of reversals.

RSI is an indicator that allows a dealer to analyze the strength of a trend and predict its reversal points. It belongs to the class of oscillators, so it quickly reacts to price changes and is suitable for trading on short-term timeframes. Many strategies are built on its basis. It can be used both as a main instrument and as an auxiliary signal filter.

Bollinger Bands. This index, developed many years ago, is considered by many to be the best indicator for binary options. It is successfully used when creating different trading strategies and by itself. This is an algorithm based on a fairly complex formula. On the chart, he draws a fairly wide channel with clear boundaries and a central line. In this case, the walls of the channel are conventional sliding ones. The middle line is used to display the average value of the selected currency pair, resource or stock for a certain period of time, and the channel walls display the price deviation from the average value.

There are a lot of signals, we have cited only a few of the most popular as examples, and if you wish, you can try to work with all of them. But take your time, start with the simplest so as not to get confused. If you have little experience, use a demo account where you can hone your skills.

Binary options trading strategy

When it comes to a binary options trading plan, there are a few extremely important basics to master. Every trader should know the basic concepts used in binary options trading. These include: trends, trend lines, channels, resistance and support, pivot points, volumes, patterns.

The trend is the most important element of technical analysis, which is the actual basis of trading strategies.

It is the trend trading strategy that is the main one for beginners and wholesale gamblers on the exchange. The trend technical indexes show the direction in which the price is moving, and can be up or down. Often, a trend ends with a sideways movement that continues until a new trend emerges. Any trend is wavy in nature, i.e. it combines the highest and the lowest levels. There may be slight declines in an uptrend, but the general direction of the price is upward.

To determine the balance of supply and demand, as well as the psychology of trading, the support and resistance levels are groped empirically. These are conditional bands that limit the current market: support is drawn from below, it seems to "support" the price, preventing it from falling below; resistance is drawn at the top, it "resists" attempts by the price to rise. If there is a breakdown of the limiters, this can be a signal to buy or sell.

The concept of price figures is built on the principle of historical recurrence of situations in the market. If the same configurations are regularly repeated, then the situation develops in most cases as standard. There are many patterns, they are all divided into reversal patterns and trend patterns.

Choose your binary options strategy
Choose your binary options strategy

The most famous and used configurations are:

  • Head and shoulders. Consists of a main peak (head) and two intermediate ones on the sides (shoulders). They determine the neckline from which the reversal will begin.
  • Double top. Can be upside-down or regular. As a rule, after two attempts to break through support or resistance, the price direction reverses.
  • Triangle. It can be ascending, descending or symmetrical. If the trend lines converge at a single point, then the trend will change.
  • Bottom (triple top). A threefold rebound from the bottom point leads to a pronounced price increase.

In addition, speculators rely on information obtained by identifying the trend using the best indicators for binary options.

You can use one or several mathematical indexes at the same time, and each of them, in turn, will filter out the false signals of the other, showing you the most accurate picture. For example, you can combine 2 Stochastic indicators with different timeframes. This will allow you to make more informed decisions.

As statistics show, the most profitable binary options trading strategies are the simplest ones.

Despite the fact that now a variety of sophisticated indexes are sold on the network, the Moving Average indicator brought its users more profit than others.

The main advice on trading strategy is to manage your risk. Do not ignore the basic rule of money management, according to which the size of the bet should not exceed 5% of the size of the deposit. Why is this so important?

We must not forget that the market can be very unpredictable and sometimes bring unpleasant surprises in the form of a series of losing trades in a row. You are not immune from this, even if you create the most profitable strategy in the world.

Indicators of binary options on the online platform

If you are new to the world of trading, you need to register on the broker's trading website in order to have access to different best indicators for binary options, as well as charts and the latest news. It's very simple and can be done in just a couple of minutes. A broker is an intermediary between you and the exchange, and a trading account will greatly facilitate your trading.

After registration, you will also have access to additional options, such as a mobile application, video training, which consists of 100 courses on various topics, a personal account where you will track your operations and profits, etc.

Registrating on the investing platform
Registrating on the investing platform

The platform was created by professionals for your convenient trading!

By studying different signals provided by an online broker, you can choose the best binary options indicator for yourself, with which it will be convenient and easy for you to work. The most convenient way to do this is through a demo account, because working in it does not require your investment, but at the same time it will bring you benefits in the form of vast experience and knowledge. As soon as you register, a demo account will be available to you, a virtual amount will be automatically placed on it, which you can spend at your discretion. Just click to open a demo account, and you are in the game!

A real account is also available to you. In this case, you will need an amount for the deposit. Experienced traders do not advise investing more money in the exchange at once, start with a small amount, and then you can gradually increase your account. You can do it!

Select the type of account for work
Select the type of account for work

You should keep in mind that indicators simply help you trade better. They are needed to alert you to potential trading trends. These algorithms can provide you with some data to work with, combined with market and economic data to customize your trading strategy. But ultimately, it is your responsibility to determine how you want to trade based on the information you see.

After all, there is no need to rely entirely on these indicators. It is still important to keep a close eye on the direction of the market as well as do your own research. These tips should help you make binary options trading easier.

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