Trend indicators for options trading

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Binary Options Indicators: Which ones to use?

A website called best meta trader indicators has published the results of a public poll. This poll’s question was: „What’s your favorite forex indicator?“ and it’s had more than a few thousand replies! That is quite a big number!

The results are pretty interesting and surprising (for me at least) and we will talk about it in today’s article. So get ready and let’s get straight into it.

Forex OR Binary Options indicators?

This website is mainly about binary options and their strategies, and this article and poll are about forex – that’s true. Both are two different things, however they follow the same principles.

Is the price going to go UP or DOWN?

That’s why we can use the same indicators in forex and binary options.

Download these binary options indicators for MT4

Most of these indicators are already installed in MT4 by default. But just to make sure, I have uploaded them for you. You can download them from the link below.

The most favorite binary options indicators.rar ►Download

The most favorite binary options indicator

According to the result’s of the poll, the most favorite binary options indicator is, with 5385 votes, the MACD (Moving Average Convergence Divergence.) This comes as a little surprise, as my personal guess was the the most favorite would be Moving Average or Bollinger Bands.

The full results can be found below. First comes the indicator’s name, the number in the brackets is the amount of votes received in the poll:

  • MACD (5,385)
  • RSI (4,310)
  • Bollinger Bands (4,126)
  • Moving Average (3,967)
  • Stochastic Oscillator (3,523)
  • Fibonacci Retracements (3,348)
  • Other (2,574)
  • Supertrend (2,487)
  • Ichimoku Kinko Hyo (2,484)
  • CCI (1,988)
  • Parabolic SAR (1,393)
  • Trix (1,065)
  • Donchian Channel (969)
  • Williams %R (920)
  • Keltner Channel (895)
  • Momentum (772)
  • On-balance volume (568)
  • Envelopes (500)

Strategies with these indicators

Many strategies published on this website are using one or more of these favorite indicators. You can find a few of them below.

Binary Options Fibonacci Strategy

The fibonacci retracement tool is probably the least understood, especially among the new traders. They hardly realize about the importance of having this tool by their side in order to take their trading to the next level. Retracements are one of the most prominent elements of any uptrend; therefore developing a trading strategy around this phenomenon

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Binary Options ‘3’ Strategy That Works + Video

While we go haywire finding a reliable trading system, we tend to miss out on the obvious. Three indicators strategy ensures high potential profits as it produces exact entry signals confirmed by 3 indicators. Moreover, it can be used with all sorts of currency pairs. This strategy that works is based on three of the most popular indicators – RSI, MA, Stochastic

BBand Stop binary option strategy

BBand Stop Strategy is a 5 minute binary option trade strategy which uses BBand Stop alert indicator in MT4 to define ideal position to enter the trade. This indicator is used along with the Bollinger Bands. How to setup the chart Timeframe: M5 Template: BBand Stop Strategy (Download here: eDisk or UlozTo.Net) How does this strategy work Arrows (pointing up and down) will be displayed over/under

Golden Eye – Trading strategy with 80 % success rate

Golden Eye is a strategy based on the ADX indicator (what is an ADX indicator?) which is used for confirming rebounds. This strategy works well with with M15 timeframe and the trades which are opened for 60 minutes (in direction of longterm trend) or for 30 minutes (against the trend).

I have had a pretty nice profit with this strategy.

I hope I have helped you, good luck with trading!

Trend Trading 60s Indicator for Binary Options – Trading Pattern

How to Setup Trend

Expiration Time

Please setup expiration time on 1 minute. For this strategy you need to have IQ Option account. If you still dont have IQ Option account than register HERE

“General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.”

Candlestics

Please click on chart button and click on Candlestics to select

Candlestics Period

Please select candlestics period as 10s

EMA Indicator

Please select EMA (Exponential Moving Avarage) from Indicators list

EMA 6

Please add Indicator EMA with period 6 and color RED and click apply.

EMA 14

Please add new Indicator EMA with period 14 and color Yellow and click apply.

EMA 26

Please add another last Indicator EMA with period 26 and color Blue and click apply.

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“Binary Options are availiable only for Non-EU Traders”

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Trend Trading Binary Options

Binary options are not promoted or sold to retail EEA traders. If you are not a professional client, please leave this page.

“Binary Options are availiable only for Non-EU Traders”

What is Trend Trading?

Trend trading is to buy or sell following the directions and momentum of the price of an asset. John William Henry in 1976 developed this effective proven strategy after he studied and technically analyzed the companies and all market data available. He discovered that with the proper information and using some analytical tools, it could be possible to predict with a great certitude the future direction in which the markets will move by identifying a price trend. This prediction ability makes possible to obtain big profits from trading on the right assets at the right time. This method was so accurate that with the time it became a mechanical trading system for future trading. Trend trading does not speculate, it uses an analytical system to identify a price trading.

In a nutshell. Trend trading is a technical analysis that tries to predict the substantial future movement of the asset’s price in one direction over a period of time with a great certitude. It identifies a price trend and follows it.

Trend trading lets the price of assets lead you

J.W. Henry believes that nobody can predict anything. Therefore, you need to let the price of an asset lead you. Since he found that “shares prices are the key sources of information needed to make the right trading or investment decision”. Every minor or major social phenomenon or news will affect the market and can produce big changes. Those are very difficult to predict. However, the share’s prices have proven to predict the future of the market. The method to get profits trading is to be able to identify a price trading and follow it.

Trend trading Golden rules

  • Only trust the price. They are the best reflection of the completely economic situation.
  • Prices usually move in two directions, you need to find a low-risk entry point. It should be a step back, you have to remember that share prices move in waves. Share prices drop then rebound or the opposite can happen.
  • Learn to let your profits grow and run. There is always the temptation to buy or sell to soon. If you learn to wait properly your profits will increase substantially
  • Do not get greedy waiting to reach top or bottom, the price correction can catch you.
  • Set where you will exit if you are right and most importantly whereyou will exit if you are wrong or your stop loss point
  • Manage risk properly

How to Invest With Trend Trading

1. Identify a trend trading that is in place.

2. Find a low-risk entry point.

3. Set your exit if you are wrong or stop loss point

4. Once the trade becomes profitable, reset your stop loss point.

5. Be patient to stay in the trending for its duration but don’t wait to reach top or bottom

6. Set your take profit or exit point

The hardest part of this system is that you have to be able to be 100% rational, the predictions are impossible. However, once a price trend is identified no matter what you must follow it.

Breakdown

It’s the price’s movement of assets below the level of support. The commodity or share price decreases or falls below its support line. Usually, it is followed by a sharp price decline. The breakdown is a clear trend trading indication for selling an asset because the market pressure will lead to a general short selling of it.

Breakout

It’s price’s movement of assets above the level or resistance The commodity or share price increases or it is above its resistance line. Usually, it is followed by a sharp price rise. The breakout is a clear trend trading indication for buying an asset because the market pressure will let to a general buying of it

Trade Breakout Understanding Trend

A trend is a direction in which an asset price is moving or where its market is headedThere are three types of trends, Uptrend,Sideways,and Downtrend

Uptrend is a series or consecutive assets price increase with higher lows. Keep in mind that every consecutive low has to be higher than the previous lowest to be classified as uptrend otherwise, it can be a Reversal.

Downtrend is a series or consecutive assets price decreases with each consecutive peak lower that previous low.

Sideways trend it is not considered a real trend by some scholars because the price has changes increasing and decreasing without a real trend.

Trend Lengths are classified as long-term,intermediate, and short-term.

Long-term Trend is any trend or price movement in one direction that last more than 4 months when a trend last more than a year it is called a Major-term Trend.

Intermediate Trend is any trend, which lasts from one to three months.

Short/Near-Term Trend is any trend that lasts less than a month.

Trending Charts is the graphical representation of the closing price during a period with the tread, resistance, and support lines

Trend lines are the linear representation of a trend. This is done by adding or drawing a straight line to clear show the price movement directions. These are particularly useful to identify the trend direction and the reversal’s point.

Support Lines is a line drawn at the level at which prices are prevented from moving lower; this is also known as Supporting Level.

Resistance Lines is a line drawn at the level at which prices are prevented from moving higher; This is also known as Resistance Level.

Peak is the highest point at the end of an economic expansion before the start of an economic contraction. In trend trading, it is represented by a straight line at the highest assets closing price.

Trough is the ending point of an economic contraction just before the start of an economic expansion. In trend trading,it is represented by a straight line at the assets lowest closing price.

Reversal is the change in the direction of a trend, e.g. a rise changes into a decline or vice versa

With the amount of information available on the internet, about the social, political and economic situation of any place in the world as well as the public records of shares, commodities and all public trade assets. Trend trading has become the best way to get profit from commodities, shares, or Forex currency trading.

60s Binary Options Trend Indicator Rules:

For this strategy you must use IQ Option account. If you still not register account please click HERE and register for FREE!!

“General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.”

Open PUT:

When candlestics cross from bottom 1 or 2 EMA lines (6 or 14 periods) or even third one. If this action is done then Invest Put Option. But emember distance between EMA lines must be Wide and not Tight.

See some Examples of Put Options

Open CALL:

When candlestics cross from the TOP 1 or 2 EMA lines (6 or 14 periods) or even third one. If this action is done then Invest CALL Option. But emember distance between EMA lines must be Wide and not Tight.

See Some Examples of CALL Options:

“Your capital may be at risk. This material is not investment advice.”

Ever wondered how to use technical indicators in trading? Well wonder no more, this article introduces 7 popular indicators, and the strategies you can use to profit from their signals.

Technical trading involves reviewing charts and making decisions based on patterns and indicators.

These patterns are particular shapes that candlesticks form on a chart, and can give you information about where the price is likely to go next.

Indicators are additions or overlays on the chart that provide extra information through mathematical calculations on price and volume. They also tell you where the price is likely to go next.

There are 4 major types of indicator:

Trend indicators tell you which direction the market is moving in, if there is a trend at all. They’re sometimes called oscillators, because they tend to move between high and low values like a wave. Trend indicators we’ll discuss include Parabolic SAR, parts of the Ichimoku Kinko Hyo, and Moving Average Convergence Divergence (MACD).

Momentum indicators tell you how strong the trend is and can also tell you if a reversal is going to occur. They can be useful for picking out price tops and bottoms. Momentum indicators include Relative Strength Index (RSI), Stochastic, Average Directional Index (ADX), and Ichimoku Kinko Hyo.

Volume indicators tell you how volume is changing over time, how many units of bitcoin are being bought and sold over time. This is useful because when the price changes, the volume gives an indication of how strong the move is. Bullish moves on high volume are more likely to be maintained than those on low volume.

We won’t cover volume indicators here, but this class includes On-Balance Volume, Chaikin Money Flow, and Klinger Volume Oscillator.

Volatility indicators tell you how much the price is changing in a given period. Volatility is a very important part of the market, and without it there’s no way to make money! The price has to move for you to make a profit, right?

The higher the volatility is, the faster a price is changing. It tells you nothing about direction, just the range of prices.

Low volatility indicates small price moves, high volatility indicates big price moves. High volatility also suggests that there are price inefficiencies in the market, and traders spell “inefficiency”, P-R-O-F-I-T. We’ll cover 1 volatility indicator today, Bollinger Bands.

So why are indicators so important? Well, they give you an idea of where the price might go next in a given market. At the end of the day, this is what we want to know as traders. Where is the price going to go? So we can position ourselves to take advantage of the move and make money!

As a trader, it’s your job to understand where the market might go, and be prepared for any eventuality. You don’t need to know exactly where the market is going to go, but understand the different possibilities, and be positioned for whichever one materializes.

Remember, traders make money in bull AND bear markets. We take advantage of long AND short positions. Don’t get too attached to the direction of the market, as long as the price is moving you can profit. Indicators will help you to do this.

Without further ado, here are the stars of the show.

1) Bollinger Bands

Bollinger bands are a volatility indicator. They consist of a simple moving average, and 2 lines plotted at 2 standard deviations on either side of the central moving average line. The outer lines make up the band.

Simply, when the band is narrow the market is quiet. When the band is wide the market is loud.

You can use Bollinger Bands to trade in both ranging and trending markets.

In a ranging market, look out for the Bollinger Bounce. The price tends to bounce from one side of the band to the other, always returning to the moving average. You can think of this like regression to the mean. The price naturally returns to the average as time passes.

In this situation, the bands act as dynamic support and resistance levels. If the price hits the top of the band, then place a sell order with a stop loss just above the band to protect against a break out. The price should revert back down towards the average, and maybe even to the bottom band, where you could take profits. Check out the screenshot below.

When the market is trending, you can use the Bollinger Squeeze to time your trade entry and catch breakouts early on. When the bands get closer together (i.e. they squeeze), it indicates that a breakout is about to happen. It doesn’t tell you anything about direction so be prepared for the price to go either way.

If the candles breakout below the bottom band, the move will generally continue in a downtrend.

If the candles breakout above the top band, the move will generally continue in an uptrend. Take a look at the screenshot below.

In summary, look out for the Bollinger Bounce in ranging markets, the price will tend to return to the mean. In trending markets, use the Bollinger Squeeze. It doesn’t tell you which way the price is going to go, just that it’s going to go.

2) Ichimoku Kinko Hyo (AKA Ichimoku Cloud)

Ichimoku Kinko Hyo (AKA Ichimoku Cloud) is a collection of lines plotted on the chart. It’s an indicator that measures future price momentum, and determines areas of future support and resistance. At first glance this looks like a very complex indicator, so here’s a breakdown of what the different lines mean:

  • Kijun Sen (blue line): Also called standard line or base line, this is calculated by averaging the highest high and the lowest low for the past 26 periods
  • Tenkan Sen (red line): The turning line. It’s derived by averaging the highest high and the lowest low for the past nine periods
  • Chikou Span (green line): Also called the lagging line. It’s today’s closing price plotted 26 periods behind
  • Senkou Span (red/green band): The first Senkou line is calculated by averaging the Tenkan Sen and the Kijun Sen and plotted 26 periods ahead. The second Senkou line is calculated by averaging the highest high and the lowest low over the past 52 periods, and plotting it 26 periods ahead

So how can you translate these lines into trading profits? I’m glad you asked.

The Senkou span acts as dynamic support and resistance levels. If the price is above the Senkou span, the top line acts as first support, and the bottom line as second support.

If the prices below the Senkou span, the bottom line acts as the first resistance, and the top line as the second resistance. Simple as that!

The Kijun Sen (blue line) can be used to confirm trends. If the price breakouts above the Kijun Sen, it’s likely to rise further. Conversely, if the price drops below this line, then it’s likely it’ll go lower.

The Tenkan Sen (red line) can also be used to confirm trends. If the line is moving up or down, it indicates the market is trending. And if it’s moving sideways, then the market is ranging.

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