The best indicators for binary options

Consistently effective trading cannot be carried out without the use of trading strategies that outline certain rules of making market forecasts and registering contracts. Trading strategies have diverse forms of construction and utilize a wide range of analysis approaches. The most simple and effective systems are strategies based on automatic indicators. But their creation requires programs that most effectively assess the market and are able to generate signals for high-accuracy trading. Against this backdrop, traders try to identify the best indicators for binary options that will create high-quality, efficient and effective strategies. Today, we will present the optimum set of indicators for the professional creation of a large number of trading systems.

We will describe the indicators and the form of their application on the basis of the Binomo broker’s terminal, where there is an integrated set of the optimal technical analysis tools:

The MA indicator

Moving averages are classic trend indicators, which are included in different interpretations in most trading systems on the binary market. The MA indicator is based on the formation of a line on the quote chart that displays the average value of the price of an asset over a certain period of fluctuations in the market. Thus, using the indicator line, you can clearly define the market movement tendency and form trade forecasts. In binary trading, traders often register contracts using classic signals that are highly accurate and have the following form:

• The price of the underlying asset has broken through the moving average of the MA indicator in a certain direction:

Contracts are registered toward the breakdown of the moving average - this allows you to stably receive up to 85% successful positions.

The MACD indicator

This is a professional indicator of a combined type. Several market valuation parameters are applied - the direction of the trend, and its strength. This list of indicators allows you to effectively use almost all reversals of asset price fluctuations. The oscillator of the MACD indicator, which is represented by two lines with different formation periods, provides information to the trader about changes in the direction of the trend and its direction, and the histogram, which is represented by different colored columns, indicates the strength of the trend movement. Thus, just one effective indicator allows you to create high-performance trading signals on the chart.

The MACD indicator generates several types of trading signals:

• The intersection of the indicator lines in a defined direction
• The intersection of the indicator lines with the central level of the scale
• A rise or fall of the histogram relative to the indicator’s axial level

The Bollinger Bands indicator

This is a classic means of generating dynamic corridors of asset price fluctuations on the chart. The three lines of the Bollinger Bands indicator form a channel of market movement of the price and, using highly cyclical signals, make it possible to identify the following market outcomes:

• The price corridor itself
• Levels of prices at which the trend changes direction
• The volatility of asset fluctuations

This list of information provided by the indicator is enough to create an effective strategy for the binary market. The indicator generates signals of the following type:

• A breakdown of the central moving average of the price of the asset
• Price quotes hitting and rebounding from the channel

This type of automatic indicator is best suited for active traders who are engaged in scalping on the binary market.

The Alligator indicator

This analysis tool is an indicator created by the famous trader Bill Williams, who is known for his trading results all over the world. The Alligator is based on a combination of moving averages with certain settings. Given this, the Alligator indicator, in its classical application, should be considered a trend indicator. The Alligator generates a simple and effective signal on the chart of the underlying asset in the form of lines intersecting in the direction of the trend fluctuations of the market, and it allows us to register contracts at the inception of new trend movement:

It is worth noting that the Alligator indicator signals make it possible to achieve maximum results in the market - more than 90% of the signals generate productive contracts.

The RSI indicator

This indicator of the relative strength of the trend involves combined analysis tools. It helps you define the following list of market indicators:

• Areas of market extremes (overbought and oversold)
• The direction of the trend movement of quotes
• Trend strength

Moreover, the indicator is able to form its own trends with the help of the dynamic moving average, which is the main tool for the formation of forecasts on the financial market.

The simplest way to use the RSI indicator is to register contracts on the exit of the indicator’s moving average from the market extrema zones:

The already classic RSI indicator signals generate more than 85% profitable contracts, which is highly efficient for binary trading strategies.

And so, just the 5 best indicators for binary options collected on a single trading platform from the Binomo broker, which allows us to construct a huge number of effective trading systems with different characteristics and forms of market analysis.

We’re offering you a simple example of creating a workable trading system by simply combining indicators. We configure the following set of indicators on the asset chart:

• The RSI indicator
• The MA indicator
• The MACD indicator

As a result, the chart will have the following markup to generate trading signals for binary trading:

Contracts are registered using simple combined signals:

• The MACD lines intersect up
• The moving average of the RSI indicator points to a growing trend
• Quotes intersect the moving average of the MA indicator going up

This format applies to signals for options UP. For trading contracts DOWN, apply the reverse direction of strategy signal building.

As you can see, everything is as simple and efficient as possible, the main thing is to choose the best indicators for binary options to build your strategy, and then just combine their settings and application formats.