Make Money Using These 2 Powerful Binary Options Indicators

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education How To Trade!
    Free Demo Account!
    Big Sign-up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!

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)

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education How To Trade!
    Free Demo Account!
    Big Sign-up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!

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.

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.

Recommended Brokers

Binary.com $5 90% » Visit Binomo $10 90% » Visit BDSwiss $10 N/A » Visit

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.

What are some awesome indicators that can be used in binary option trading?

a SumjD d BpyZ m b A y ztep s A gM t KzOKm l U a o s Wgiw s V i f a I n hGvH

I wanted to answer this question for a long time. Finally, I am feeling honored to reveal to the world today, what are some awesome indicators that can give you maximum winning ratio of upto 95%+ in binary options trading.

The best part is you don’t need to throw $200-$500 on any indicator from the Internet. You can develop this at home.

And the indicator is…… YOUR EYES.

No other indicator will give you the signals that it will give and trust me if you want to be successful in trading then you must develop this indicator. It’s a must.

How to develop your eyes into a powerful indicator?

Binary option indicators

Like a standard exchange-traded option, each binary option has an option premium (, , , and in the examples above), a pre-determined strike price (,250, ,244, 78.

Best Indicators for Binary Options Trading

Article is especially for newbies and for new traders in binary options and in trading industry generally.

RSI Indicator – How to use RSI with Binary Options Trading?

Cycle indicators in fact are to be used to identify the start or end of retracements.

Make Money Online with Binary Options – This Alligator Indicator Helped Me Win All Trades

The trading indicators are primarily built for the forex or stock markets, they can easily be used for trading binary options as well.

Bollinger Bands Indicator – Binary Options Indicator

Challenge in binary option trading is correctly predicting the sustainability of a trend over a given period.

вќ±AWESOME INDICATORвќ° Best Binary Options Strategy рџЏ†

Indicators: volatility indicators mostly make use of high and low and in some cases the open or close prices as well.

Powerful New Binary Options Indicator Over ,000 In 5 Minutes LIVE | Vertified

Indicators: cycle indicators are a bit more complex as they tend to plot the cycles, the peaks and troughs or the retracement dips or rallies in price.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education How To Trade!
    Free Demo Account!
    Big Sign-up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!

Like this post? Please share to your friends:
Binary Options Trading, Strategies and Robots
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: