Trading operations in the financial market with the help of binary options belong to the varieties of exchange trading, so classical analysis techniques and standard forecasting tools are used here. Today we will touch on such a topic as the most effective and effective indicators for working in the binary options market, which give traders the maximum possible trading indicators, and allow them to work in the most stable performance mode.
So, the set of automatic algorithms for assessing and forecasting the market, which is used in exchange trading, has several hundred items. Of course, their main task is to determine the trends in the price movement of an asset, but the use of a variety of forecasting techniques and the number of indicators that they determine are not always effective in binary trading. For this reason, in options trading, there is a set of classic tools for evaluating trading quotes.
To determine the list of such funds, you need to refer to the direct algorithm of the option contract. Here, the main condition for obtaining the result is the correct determination of the upcoming movement of quotes. Hence, the most favorable conditions for the registration of trading rates with binary options are a protracted price movement along a stable trend and the moment of reversal of quotes to build a deep and prolonged price correction or a new trend.
Thus, the most effective means of analysis in trading in the binary market are indicators that determine the direction of the trend and reversals of fluctuations in the value of an asset. Here are some examples of the most effective indicators. In order to demonstrate the effectiveness of the technical means as clearly as possible, let’s take the trading terminal of the Binomo broker, where a set of classic automatic analysis tools is offered to work in the options market. The first effective indicator for binary options is deservedly considered to be MA (moving average). This forecasting tool is based on the simple principle of calculating the average value of a trading asset in a certain market range. The dynamic moving average of the indicator allows you to clearly identify protracted trends on the asset chart, as well as points of change in the direction of the trend movement, which are identified using a signal in the form of a price crossing the instrument level. This mode of analysis allows you to get more than 85% of trading rates on the market with a positive result, which has the maximum impact on the final result of the investor’s trading operations.
Bollinger Wave Indicator
The following automatic algorithm for evaluating trading quotes is based on the previous analysis tool – the MA indicator in different interpretations of the settings. Its task is to determine not only the trend, but also the boundaries of the price deviation from the average values. As a result, on the trading chart, the investor receives the most correct set of indicators for placing bets. As a classic set of signals, the indicator generates the following indicators:
- The price rebounds from one of the boundaries of the market fluctuation channel.
- The price of the asset crosses the central level of the indicator, which indicates a trend reversal.
The use of the Bollinger Bands indicator is characterized by accurate signals, as well as their high level of cyclicity. Working on Bollinger, a binary market trader can get up to 90% of effective contracts and the largest possible number of them in a narrow time range.
MACD indicator in binary trading
Oscillatory indicators in binary options trading are an indispensable tool for determining price price reversals. The classic indicator for high-frequency trading in this market is the MACD. This algorithm is based on determining the degree of divergence of moving averages, which very accurately identifies trend reversals. The indicator uses a wide range of indicators for evaluation – the trend reversal point, the strength of the price movement, the validity period of the trading signal, which is determined by the settings of the components of the analysis tool. In this way, investors can clearly and very easily generate predictions for options betting. The following indicators are used as the main set of indicator signals:
- The intersection of the indicator lines in a certain direction.
- Breakdown of the indicator’s centerline by oscillator moving averages.
- The histogram of the instrument rises or falls relative to the zero level.
The effectiveness of this algorithm for market analysis has the highest possible rate – up to 93%, which brings investors the highest rates of trading capital growth. We have offered you a set of the most effective indicators for binary options, which provide the simplest technical conditions for the correct analysis of the market and the maximum statistics of the profitability of trading operations.
