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Almost every trader is looking for the profitable binary options indicators. Nowadays there are many paid algorithms on the market, the developers of which guarantee 100% effectivity of their product. We have to say that you should be skeptical, when hearing such offers. There exist no indicators, which would be equally effective during the different times of expiration and for all the basic assets. Nevertheless, indicators are able to generate trading signals with the high enough percentage of hits, with the majority of them being absolutely free.
Specifics of the profitable binary options indicators
As we know, indicator is an algorithm, which forms graphs, reflecting the state of the market based on certain statistical and math calculations. Algorithms by different developers vary with the principles of the design, semantic charge, time of the analysis etc. All the instruments can be separated into three categories:
- Trending instruments. You can open transactions according to the current trends based on these instruments.
- You can trace when the trend starts to turn into the other side.
- Volume instruments. They are used to prove the trend by calculating the activity of other market players.
One more group of indicators is needle indicators. They already offer trading signals and the investor has only to buy corresponding option. Profitable binary options indicators are not rare in this category, but experienced traders treat “switchers” skeptically. Generally speaking, they are right: a trader’s decision almost fully depends on the algorithm. Professionals advise using such tools only together with other means of technical analysis.
Basically, the profitability of each factor is defined by certain market situation. Some indicators are effective when there is a strong trend for the options with short expirations, while the others only on the flat market with long-term schedule times. And so on. In order to achieve success, you have to work only with the tools, which fit into your trade strategy.
Review of the profitable binary options indicators
Experienced players on the binary options market generally use 2-3 indicators of various types, for example, the trending one and oscillator. Only time will show whether the choice was right. Yet, you can assure of your rightness or mistake only by making a deal. Here are the review of some profitable binary options indicators.
It is a volume indicator, which is good at work with all the basic assets. You can see the curve on the program graph, which shows the activity of the market players. If the curve is turned upwards it means that the customers constitute the majority and vice versa, if it’s going downwards, the majority is the sellers. Therefore, a user can see whether the current trend reflects the interests of the majority.
UP Buy Signals:
- The indicator’s curve confirms the growth of the price chart.
- The A/D curve denies the decline of the price chart (divergence).
DOWN Buy Signals:
- The indicator’s curve confirms the decline of the price chart.
- The A/D line denies the growth of the price chart (divergence).
It’s also important to point out the disadvantages. The indicator does not count price gapping, that is why, in case it arises, there might be some mistakes in calculations. The indicator also misses out certain divergences. The problem is that the A/D curve repeats price movements too accurately. However, if the divergence exists, it is a very good signal, because many traders operate based exclusively on the divergences. They open deals not so often, but they make money confidently. It is recommended that the indicator should be used as a component of the strategy.
It is an effective oscillator, which helps to open transactions at the moment of the trend reversal. This profitable binary options indicator is contained in the standard set of indicators on the live price chart. The foundation of the algorithm is a triple exponentially leveled moving mean, calculated by closing price.
We can also observe signal and neutral lines on the chart. There emerge motives for purchase of an option as a result of crossing of TMA and those lines. You can extend the possibilities of indicators by adding the new levels of overbought/oversold.
UP Buy Signals for the Option:
- TMA crossed the central line below.
- TMA crossed the signal line below.
- TMA came down to the oversold area.
Down Buy Signals for the Option:
- TMA crossed the central line above.
- TMA crossed the signal line above.
- TMA rose to the overbought area.
You should remember that the TRIX productivity declines sufficiently at the flat market, that is why it is more reliable to combine it with the trending tool. We do not recommend to use this program for turbo-options, but in all the other cases it works perfectly.
It is one more convenient oscillator, which generates anticipated signals, which inform about upcoming market turnabout. We can watch the curve on the chart, which mostly moves between 20% and 80% levels (there is an oversold area above and overbought – below).
You can open transaction based on the signal Williams %R only after you received confirmation by other participant of the strategy.
Here is a small secret concerning the William Indicator. To this end we have to input the settings on 200 and also turn it on the Moving Averange Live Chart with a period of 40:
As you can see, when the William indicator %R came to the oversold area, many users could have opened the DOWN transaction, expecting subsequent decline in price, however, as you can see it later, the price delayed in the sideways trend. In order to filter out this moment, we can use a long moving mean. First you see that it is located below the price curve, which shows a certain growth. As soon as MA crosses the price line and appeared to be above it, this is the true signal for the decline of price. At that moment you can open the DOWN transaction.
This system works even for the minutes chart, as on the example above
The combination with MACD also proved to be good. Together with other tools it is a true profitable binary options indicator.
This indicator is often found under the names “Ultimate” and “Final”. Three oscillators with different periods are involved in the calculations at once (28, 14 and 7 by default). The output is a curve that moves in the range from 0 to 100. Levels 30 and 70 are considered critical: at the intersection of the first mark, the indicator line falls into the oversold zone, at the intersection of the second – into the overbought zone.
UP Buy Signals:
- The curve dropped below 30.
- The price continues to decline, and the indicator line stops or starts to rise (divergence).
- After a long stay in the overbought zone, the curve drops sharply below 50, but quickly rises above 55. This indicates that the down impulse was not confirmed and the price will continue to rise (false break).
DOWN Buy Signals:
- The curve rose above 70.
- The price continues to rise, and the indicator line stops or begins to decline (divergence).
- After a long stay in the oversold zone, the curve rises sharply above 50, but quickly drops below 55.
As in all other cases, the indicator’s profitability for binary options increases if you check its signals with additional programs.