Virtual markets: the stock exchange, forex, options (classic and binary ones) have in common is that they are a popular modern income. While people do business without leaving the house, getting profit is not easy. Having the minimum analytical skills, you must be able to manage the software. Binary options indicators (BOI) are a technical tool, causing the profits of the trading system by sending signals to action or deliberate failure in order to not to make a wrong deal.
Sometimes trading signals give failures with different reasons – the traffic or shortcoming of the program. The problem is that some of the BOI shows the price volatility on history charts, with this problem is affected by the future economic predictions. Such policy actions are mislead a trader. In a professional environment this phenomenon is known as Redrawing.
Advantages of the lack of redrawing
The most accurate forecast is important on any trade. BOI without redrawing is a tool helping to achieve the goal more easily and being used by experienced traders and beginners. It has some advantages:
It reliably reflect the direction of asset prices – even when the trading signal is not enough to predict the cost, then its up-down direction that corresponds the Call/Put strategies is tracked clearly giving the reason to bet;
It works not only during the market trends activation or calming in the underlying asset, but also during the BO market stability – its designation is called the Sideways Trend. This time is not good for bet, but if BOI is used without redrawing, the experienced players are able make the correct forecast;
It accepts any underlying assets – currencies, gold, raw materials, etc.
To tell the truth, it is very difficult to describe BOI: the brokers have their own proposals, traders – their preferences. Some people prefer turnouts, someone likes oscilloscopes, but there are classic, comfortable and useful tool to any player.
ADX indicator was created for the stock exchange as a tool to determine the exact trend direction in the late 70s. Accurate data is produced due to the ability to measure the speed of the trend. It provides the function with an additional filter, which determines the price activity preventing the line moving on the sidewalk trend with a danger of minor fluctuations, which are called false. ADX has anti-false action. They lead to erroneous forecasts and money loss. This indicator’s useful function is achieved by: ADX calculation allows to save the prices activity in one direction or another in one-third of BO time – the rest of the period is marked by a sustainable stability.
Where to find the ADX indicator and how to use it. On the Premium Signal trading platform menu find its icon and drag it on the chart, which consists of different lines. Choose the color of ADX main signal line and monitor: the upward direction means the market revival, but the trend may be either rising or falling. If the line is directed down, it means that the market is stable (good for bets) or chaotic (bet are not profitable). The market activity levels are marked in the ADX window, with recommended index to conduct operations is after 22.
Combined Trading Signals. Interaction Indicators
Scalping on BO is an intraday trading when a trader seems it is important the timely entry into the transaction – it requires concentration and indicators. Scalping on BO involves complex extraction technique of trading signals. You should know – how to insert indicator in indicator which is not that hard. All you should do is to drag necessary items from the trading platform navigator to the price chart. Support and resistance indicators is a popular tool to use on the BO market, a combined software products that demonstrate a wide range of data showing price action. Those indicators affect not only the current period, but also an archive, that allows you to make the most accurate prediction based on trends.
Premium Signal has another good helper that is Option Levels Indicator. It reflects the market data, consolidated with the Chicago Mercantile Exchange. The name of one of the most popular in the series is eVOLution-options.
The Best Indicators for Scalping
The BOI on short-term timeframe is not only secured stable profit for professional, but also a good workout for beginner. When using it right, it becomes possible to avoid high-risk due to ease short-term forecasting. Many of the instruments moved from Forex, including indicators for scalping on the M1. A popular working combination is Standart Deviaton and RSI, when the latter is necessary to insert the first, consolidating them into a single programming mechanism. Thus, when prices and the maximum rate fall – a signal to buy is set; and at the same peak but with price increase – a signal to sell is set. The Stochastic Oscillator continues to be very popular, and clearly shows the status of option trading on two lines. The profitable betting position is determined at the moment of resistance: exceeding one line index – 80, when finding a second lower than 20.
Ichimoku Kinko Hyo
Specialized publications and traders consider Ichimoku indicator as a basis for the trading system. It was invented for the exchange in the first half of the XXth century, but was brought to perfection only in the late 60s. Ichimoku Kinko Hyo includes 5 business lines, two of them include the shaded timeframe:
Tenkan – short trend;
Kijun – the average index of the average timeframe;
Senkou A; B – accordingly: an average between the Tenkan and Kijun lines – the average over a long timeframe;
Chikou – price, shifted by the average timeframe;
Kumo – Ichimoku cloud – a sideways trend.
It is necessary to monitor the crossing, for example, when the Tenkan Kijun passes through the Kijun – thus, a Golden Cross signal is set – a trader should buy. Reverse cross – bottom – a Dead Cross signals – a trader should sell. There are other variations. One of them is known as the intersection of three lines: Tenkan, Kijun, Kumo – it means that the signal on the growth trend is omitted, and thus the opportunity to play on it is missed too.
Experienced traders recommend to insert any candle indicator into the Ichimoku Kinko – to maintain the resistance and make more successful forecast. Goichi Hosoda, the creator of the system, shares the same view.