Indicator Strategies for Binary Options

Published:9 November 2016 Updated:4 January 2024

The use of automatic algorithms in a professional indicator environment, to analyze market indicators and the formation of high-precision forecasts is the most effective approach in binary trading. This is due to the ease of operation of the indicators, the accuracy and expressiveness of the generated signals. We want to present several instances simple and maximally effective indicator strategieswhich can help newcomers to the industry to get a stable income from the first steps of their presence on the binary market.

Before starting to consider the trading systems of the indicator type, it is necessary to clearly define the main conditions of their effective use. The operation of a binary option on the financial market and its effective use by a trader together with the indicator strategies requires the following list of conditions and technical tools:

  • Highly professional trading terminal with the most stable operation when trading on the financial market
  • Availability of indicators integrated into the trading platform
  • Minimum parameters of the initial trading account and the cost of the option
  • Accuracy of market quotes
  • A wide range of assets
  • High speed of contracts.

As a basic example of an effective in all senses trading platform we offer a broker terminal PocketOptionThe most important thing is that the private trader gets such a choice of services and tools:

  • The professional terminal developed by the company’s specialists
  • A set of professional indicators that can be used directly on the trading chart
  • Terms with these parameters – account from 10 USD, the volume of the minimum contract from 1 USD
  • Highly accurate market quotes
  • More than 80 different kinds of assets
  • Speed of trade orders execution 1, 7ms.

 

MACD indicator strategy

This indicator provides a combined set of information for determining market trends. В MACD indicator Two approaches are used to determine the direction of further price movements: the histogram, which determines the direction and strength of the trend movement, the oscillator based on moving averages, which clearly indicates the reversal points of the quotes to build a correction or a new trend.

Classic signals of the MACD indicator are:

  • Intersection of oscillator lines in a certain direction
  • Histogram bars rise or fall relative to the zero level
  • Intersection of the indicator lines of the indicator scale level 0

MACD indicator strategy

This set of signals of the automatic MACD analysis algorithm allows obtaining a high level of profitable binary trading statistics. On average, the indicator strategy of this type leads to the execution of more than 80% contracts with the resultant outcome.

 

Indicator strategy RSI

High-tech indicator of relative trend strength (RSI) also refers to combined algorithms for determining market trends. Here with the help of a dynamic muving it is possible to determine the direction of the trend and points of its reversals. In addition, the RSI indicator quite accurately determines the overbought and oversold zones of the underlying asset (the so-called market extremes). The totality of indicators and the flexible operation of the RSI indicator allows to get up to 90% resultant contracts in the market.

The principle of trading on the RSI indicator is the registration of trading positions when the muving is out of the overbought or oversold zone:

Indicator strategy RSI

This indicator strategy format is the most effective and simplest approach for options trading.

 

Combined trading system

To increase the accuracy of signals and their effectiveness for binary trading, combinations of automatic analysis algorithms are used. A classic example is a system that uses such professional indicators with standard settings:

  • MACD indicator
  • RSI indicator
  • Indicator MA

Combined trading system

Combining indicators on a single trading chart allows you to get the most validated filtered trading signal. This leads to an increase in trading efficiency. The signals of this type of indicator strategy are:

  • Crossing by the price quotes of the MA indicator level
  • Classic MACD reversal signal (oscillator lines crossing)
  • The direction of the trend as determined by the RSI indicator

Combined trading system

We have provided you with classic examples of using indicators to make predictions for binary options. This list of strategies refers to highly effective and maximum ease of use. Beginners, with minimal trading experience, applying these approaches in practice, will be able to obtain a consistently profitable result from the first contracts.

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