Useful tools for binary options traders
When you are new to this type of trading gaining as much help as possible can make a huge difference between becoming a successful trader or not. Even if you have some experience in trading, this guide to the variety of signals available will help you to improving your success rate.
Indicator one – the simple Zig Zag
This type of signal is usually built into any broker platform. Simply select it and it will show you the highs and lows of any asset. In an instant you will be able to assess the current and recent price movements and use this information to trade with.
The Barry
One of the most basic principles of binary trading is knowing the maximum and minimum price movements of an asset. Understanding when a specific asset is likely to reach the highest point of its regular trading pattern; this will ensure you know when to trade against the current price direction. The Barry can be downloaded and installed into your MT4 platform easily and then simply dragged and drop it into your chart. Of course, there is no way this can accurately predict the future; but knowledge of the past movements will give you a good guide.
Too Many Sold
There are times when the market has enabled the price of a specific asset to go much higher than it normally would; this means that the asset is liable to drop in price very quickly. This can also occur when the price is much lower than usual. An indicator can show you the times when this happens and allow you to trade accordingly. This type of signal can be easily installed into your MT4 platform.
Once installed, the RSI can be added to any chart; this can usually be done by adding either the top price range, or the lower, or even both. The best way to use these guides is to decide at which level you are happy to trade. Most traders will select seventy and thirty of eighty and twenty. Whenever the price range moves above or below these levels you start to trade in the opposite direction to the current trend.
The News
Every trader should have a news feed connected and open when they trade. Very few indicators will provide an adjustment for the state of the market. Impending news can make a huge difference to the way the market moves and how your trades should be placed. Having at least one news link will help you make the right trades.
Bollinger
This signal can be used to show you the highest and lowest al price levels. It will also show you the average price of an asset and, when the bands move together they can indicate a high volatility in the market. This may not be the best time to trade.
Pivot Points
The best way to understand when to trade is to know when the market generally pivots each day. There are usually several points and several lines to show peaks and troughs. You can trade on the pivot points and the current price movement.
The Harmonic
This is a more advanced way of trading; the signal is more complex and can be difficult to understand. An automated signal can easily demonstrate the effectiveness of this type of trading. In effect they will draw triangles onto your charts to show you the average rises and fallings of a specific asset. There are a variety of places where you can download them and add them to your current trading platform.
Fibonacci
This is one of the most common and effective signals available. It works to identify the best places to trade when the market is about to change direction. This type of indicator is almost certainly already on your platform.
The moving Mean
This is also referred to as the moving average and is simply the mean price of an asset for a specific time frame. This can be as little as one hour or for an entire day. Plotting a line through several of these averages will give you a guide to the current direction of the market; combined with other signals it can be a very effective way to trade.
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