A lot of indicators are available for free on various websites these days, but what about the best ones for binary options? How would you know which ones to use? Let us take an example of two brokers.
- One offers two different styles of indicators.
- The second does not.
Which one should you follow?
Why you must use indicators
If you are new to binary options and trade 2 minutes without any indicator, that is considered a bad habit. With just a little bit of practice, you can get better. Remember that all the best indicators are not created equal. They can’t be. So, which ones are the best for you?
Best binary options indicators
In this category we have listed only the best and generally accurate binary options indicators. To make a good profit on binary options trading, it doesn’t really matter how many pips each trade brings in. What actually matters is only the trend of the price. There are a lot of traders who only trade with the trend, never mind if the trade goes in their favor or not. This is a big mistake as experienced traders know very well that good results can come even if they lose a few pips. So, these are the indicators you should look out for.
Monthly volume and volatility
Short term traders need to pay special attention to the size of their trades. Big monthly volume means big money. So, when looking for binary options indicators to use to pay close attention to this factor. Volatility is another factor that affects the results. The more volatile a currency pair is, the more the market will change, so the volatility should be checked.
The best way to get accurate binary options indicators is to go for a paid service that provides them for free. It is true that the indicators may not be available for free. But if you do your own research, you will be able to find a number of indicators that are absolutely free, and use them to trade. There are a number of sites that offer free trading signals that can really help traders.
Some of the best free binary options indicators are:
- Relative strength index;
- Moving average convergence divergence or MACD;
- Other factors like currency pairs.
However, there are a number of other things that affect the results of the trading. So, for traders new to binary trading it is essential that they learn how to read price trends and use all the data at their advantage. Only then can a trader make a better profit.
What to begin with
To begin with the indicators that need to be checked, the best indicators that a trader can depend on are the actual price movement of the asset. The price movements should be checked both before the trade is made and after the trade has been made. Traders check the price information in relation to the MACD and other indicators. They are able to see the patterns of movement in the actual price movement, and can make better decisions.
Another good indicator that most traders actually use are the moving average index or MACD, and the various other moving average indicators that are commonly used in binary options trading. The movement of the average closing price along the x axis is called the trend line, and this trend line needs to be constantly checked. If the value of the trend line is predicted to go up, then the trader has to go in the direction that indicates that the value of the trend line is going to rise. Similarly, if they expect the value of the trend line to go down, traders have to go in the opposite direction. A variety of other moving average indicators like Japanese candlestick charts, and the RSI (Reverse Correlated Time and Price) indicator are also used in order to forecast the direction and performance of an asset.