Are you a Binary trading addict?
Did you fail in Binary options trading even using Indicators?
Do you want to drive Lamborghini Aventor?
If your answer is yes.! Then you came to the right article..
In this post, I’m going to show you 10 indicators to trade and win binary options.
Why should we use Indicators to trade options?
Are you confused to use Indicators?
As you (investors) know that, binary options are one of the profitable trading available in today’s market. If you think binary options is a gamble, then you are a completely wrong.!
If it’s a gamble, then how clever investors win the most and drives Lamborghini Aventor..While failing traders go bankrupt.!!
So if it’s not a gamble, then how should I win the binary options trading?
If you are using the following 10 Indicators to trade, and definitely you will win most of the trades. This will result in lots of money to buy Lamborghini Aventor.!
Now I’m going deep Into the article, take a cup of coffee and start reading the article..
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I’m going to tear down world’s most popular Binary options Indicators. These indicators will be most helpful for short-term traders such as 60seconds, 5minutes, 10minutes, and 15minutes trading.
Also These indicators are completely compatible with MT4 free charting tool.
List of Indicators to trade binary options:
- 1. Stochastic oscillator
- 2. Zig-zag Indicator
- 3. Rainbow Strategy EMA Indicator
- 4. MACD Indicator Moving Average Convergence Divergence
- 5. Pivot Points Indicator
- 6. Heikin Ashi Indicator
- 7. Parabolic SAR An Indicator
- 8. RVI Indicator Relative Vigor Index
- 9. Bollinger Bands Indicators
- 10. CCI Indicator Commodity Channel Index
1. Binary trading using Stochastic oscillator
How it works?
It works by analyzing an asset’s closing price to its range of price over a short period of time.
How Stochastic oscillator can be used?
It can be used for measuring the overbought and Oversold levels. It can also used for technical analysis.
How stochastic oscillator is plotted and Calculated?
It is plotted at a range of zero to 100.
Overbought conditions are identified when the indicator crosses above 80 and Oversold Conditions are identified when the indicator signal crosses below 20.
Advantages of stochastic oscillator in Binary trading?
– Stochastic Oscillators are easy to read and understand. Simplicity and elegance is one of the awesome advantages of this indicator.
– You will get more recent and current signal. If you could tune the oscillators to certain percentage, your accuracy will be amazing.
2. Zig-zag Indicator
Zig-Zag Indicator is a trend following Indicator.
How it works?
Zig-Zag Indiactors are used to predict the price fluctuations and Traders will profited using the market trend change.
How Zig-Zag Indicator can be used for Binary options trading?
Binary Options traders can use this indicator by combining it with two moving averages setting them at 2periods. If this combination gives a bullish signal, wait for the 2period to cross another 2moving averages..If that works..Call action can be done.
3. Rainbow Strategy EMA Indicator
How It works and How it’s calculated?
The Rainbow trading strategy involves three types of periods.
6periods, 14periods and 26periods(Exponential moving average)
How Uptrend and Downtrend is calculated?
If 6period is on top of both 14period and 26 Period EMA, and also top of 26period EMA has to be located below the 14period EMA. If this condition comes, it’s a clear sign of Uptrend.
Taking above action in reverse will produce the Downtrend.
When the Call and Put actions can be triggered?
Call Options: It can be triggered when the price goes downward to the 14periods EMA and started moving back up to the higher price. In this situation, Call options should be called.
Put Options: Taking in reverse. If the 14EMA periods go uptrends and start moving back downwards. In this situation, Put options should be called.
4. MACD Indicator (Moving Average Convergence Divergence)
As we already discussed this indicator in another article. We can skip this indicator. If you wanna read that article, please go to Guide to binary options strategy using MACD Indicator
5. Pivot Points Indicator
Pivot Point indicators are one of the most used indicator in Binary option trading.
How Pivot Points are Calculated?
Pivot points are calculated using the market trends for a specific duration of time. The calculation is done by taking the asset’s previous price levels.
Benefits of Pivot Point Calculators in Binary options trading?
Success in binary options trading totally depends upon the understanding the market trends, market behavior for future price levels. With the help of the Pivot points, you can guess the market trends, whether its bearish or bullish.
6. How to use the Heikin Ashi Indicator win binary options
Following ways indicate the whether to use call/put options using Heikin Ashi Indicator
- 1. Uptrend Signal: To find an uptrend check for Hollow candles without lower “shadows”. Hollow candles indicate the market’s uptrend, If its without lower shadows, then its confirmed uptrend in market behavior.
- 2. Trend Change: Candle with a mix of both lower and upper shadows shows a market trend change.
- 3. Down-trend Signal: To find downtrend, look for Filled candles. If you could find filled candle without higher shadows, then it indicates a strong downtrend.
7. How to Use Parabolic SAR indicator to win Binary Options:
We already wrote a guide to use parabolic SAR and MACD to win Binary Options.
Check out that article here: Guide to binary options strategy using MACD Indicator
8. RVI Indicator (Relative Vigor Index)
Normally The RVI indicator used for technical analysis. This indicator measures the conviction of recent price action and likelihood in the future trend.
How to Use RVI Indicator Relative Vigor Index in Binary Options trading?
The RVI indicator value will increase when bullish trend increases. From this, you could find that if the indicator price climbs, current relative price will climb. Same as uptrend, if the indicator price goes down, the current relative price level will also decrease.
Call Option: Call options can be done when the RVI indicator crosses above the RVI signal line.
Put Option: Put option can be called when the RVI indicator crosses below the RVI signal line.
9. Bollinger Bands Indicators
How to use Bollinger Bands for Binary options trading:
Caution: Use this indicator only for a broad range of securities and guessing.
Use this indicator along with the other indicator to confirm the bullish or bearish situation.
All we need is knowing the price level movement, market behavior,etc. For which we are using tons of tools and indicators to confirm the market trends to decide whether it call or put option.
Bollinger bands are nothing the boundaries within that, price movement will be fluctuating. In all the time, price level stays within the boundary, it may be crossing the levels. So using the Bollinger indicator you can’t take affirm decision in binary options. But with the other indicator, you will get a huge idea to trade.
10. CCI Indicator(Commodity Channel Index)
This Indicator is used to find whether the invested asset is overbought or oversold.
Call Option: When CCI crosses below the level of 100 and start moves upward.
Put Option: When CCI Crosses above the level of 100 and begin to move downward.
Thanks for your time..
How you are going to use these indicators and buy Lambo..?? Express your feelings in comments.!!
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