Why does a trader need binary indicators?
The problem of determining the exact direction of the dynamics of an asset is the main one in binary trading, because This directly affects the profitability of working with options. In order to most accurately identify the market trend and make money on it, today traders use automatic programs, indicators and oscillators. However, it is difficult for a novice market player to decide on the choice of a reliable tool from a large number of different offers.
What is the basic algorithm of binary options trading contracts? You must indicate the correct direction of movement of price quotes. For a trade to be profitable, you need to wait for the start of a new trend or a reversal of quotes for deep corrections. Effective tools for assessing market dynamics are channel, trend and oscillator indicators, which clearly determine price reversal points.
Review of the Best Binary Indicators
We bring to your attention a selection of the most effective binary indicators that will increase the profitability of trading, will guarantee accurate forecasts. To demonstrate their capabilities, we use the terminal of one of the most popular binary options brokers Binomo (Binomo review here).
MA indicator
The “Moving Average” indicator is a trend, it is quite popular among binary options traders. Its work is based on the calculation of the average value of the instrument for a specific period, which is set in the indicator settings. The binary indicator on the chart is presented in the form of a dynamic line:
The main trading signals of the indicator are the following indicators:
- The movement of quotes relative to the price moving average: the trend will move in the direction above or below;
- Breakdown of the indicator’s trend moving in a specific direction: a reversal of the trend movement in the opposite direction:
The average efficiency of strategies using MA is approximately 85%, which largely indicates the accuracy of its forecasts.
Bollinger Bands indicator
“Bollinger Waves” is another of the popular binary indicators that is often found as part of profitable trading strategies.
This effective trader’s tool refers to channel-type indicators. It is based on the principle of determining the values of the asset price using the classic moving average and the corridor of price deviation from these values. When an indicator is added to the trading chart, a dynamic channel is formed, which provides the trader with different indicators of the direction of market dynamics:
The main technical signals of this indicator are:
- Price rebound from a specific level of channel borders;
- Crossing the middle line of the price line indicator in a specific direction:
This technical indicator is usually used in aggressive binary options trading, it allows you to get up to 87% of successful transactions.
MACD indicator
This tool is also widely used in trading, refers to oscillatory indicators. Its task is to determine a wide range of technical indicators of the market: price reversals, trend strength, the value of assets in a certain range. All this allows us to consider MACD as a means of professional analysis, a universal system for predicting market dynamics.
The MACD in the classic format consists of two MA lines (the “Moving Average” indicator) with different periods and a histogram in the form of bars that determine the strength of the asset’s fluctuations:
The main trading signal of the instrument is the intersection of its lines in a specific direction with the simultaneous rise or fall of the histogram in relation to the zero level of the chart:
Findings
The binary options indicators we offer are the most efficient, accurate and versatile. You can confidently use them in market analysis in order to achieve success in trading as quickly as possible. The choice of a reliable binary broker also affects the receipt of decent earnings from binary options trading (the current rating of binary options brokers is here). We recommend that you work with brokers such as Binomo (Binomo broker review), FiNMAX (Finmax broker review).
