Indicator for zone chart binary options. Indicators

Today we will look at a very accurate indicator for binary options. You will not find this indicator in free access. This indicator works on any Metatrader 4 terminal. For example, the terminal can

So let's get started!

The indicator displays simple arrows for buying or selling options. What could be simpler?

The disadvantage of the indicator is that the arrows may disappear if the price does not move in the direction of the arrow. But the author of the strategy prerequisite writes that entry based on the signal should occur on the zero bar. That is, on the next candle. Thus, if you see an arrow and a new bar has already begun, be sure that it will not disappear again.

I checked this indicator in the strategy tester, everything is really true. The arrows sometimes flicker and disappear. But if you check on the next bar, then this is not a problem.

Unfortunately, it was not possible to understand by what strategy the signals are issued.

During testing, I got 86% of profitable trades, and in this strategy you can use a martingale of up to 4 legs.

If a signal turns out to be unprofitable, the next profitable trade will save it.

Expiration date is 1 candle.

This will be one of the shortest lessons. It's funny, but such a banal topic as indicators is difficult to describe from a psychological point of view. It is because of indicators that beginners have so many problems with trading in the initial stages. I had them too.

A novice trader needs a foothold. This whole price on the charts looks so unpredictable, especially when the first enthusiasm subsides and you realize that it is not bouncing like a ball at all from the support and resistance lines. When he wants, he breaks them, sometimes he teases them and supposedly breaks them (false breakouts), and sometimes he seems to deliberately bounce when you are waiting for a breakout. My head is spinning, my deposit is decreasing.

The indicator is strict and clear. He has clear rules, he often even shows with arrows where to enter. There’s just one problem with the indicators...

The indicator shows only the past

And it's right there in the title. This is what beginners, and often even experienced traders. They forget how any indicator works. And this:

Mathematical operation with past data.

Do you understand? The indicator cannot “predict” the future. It is based on a very simple formula. Let's say we took 14 candles, the minimum price, the maximum, played around a little, bam - we have stochastics. But what does it show? Past price data. I will save you a lot of time if you immediately understand the simplest trading truth:

The indicator does not predict the future. It only shows the past.

Indicator structures past data, but is not able to look into the future even 1 point. We will do it for him, with our trading brains.

For this reason, trying to trade using indicators alone usually fails. This is not surprising. The child could trade MACD crosses or oscillator lines. Moreover, any programmer who has mastered “C++ in 21 days” can easily write a trading robot that will make such entries automatically.

And they are all tested. All popular indicators of the world. On the TradingView platform you can find ready-made strategies with them that can be run on history with one button and show the results.

And there it turns out that any naked indicator strategy, shamelessly waving its arrows, looks completely indecent, because it, in itself, only loses money in any foreseeable period.

This, by the way, is one of the misconceptions of beginners. They believe that if the indicator gives results for a day or a week, then they have found the “money” button. In fact, they only got a short-term piece of luck from the theory of probability. The longer the historical period over which the indicator is tested, the more losses it will ultimately show.

Why are indicators needed?

We have already come a long way:

And indicators can become a useful addition to these topics - to technical/fundamental analysis. They can complement your understanding of the market and will be a good assistant who will come to your aid in difficult times. But this is not a shining knight in armor who will save you if you do not understand what is happening with the market.

The indicator is not capable of this. It carefully organizes old prices and helps you understand what was happening in the market before you made a decision right here and now.

• If you regard indicators and indicator systems as a supplement, they will help.
• If you rely only on them, beware, you are asking too much from a simple formula.

No matter how beautiful the indicator looks, it is only a formal structuring of old data:

Initial indicators for binary options

The indicators that are among the most popular are slowly described on the site. I don’t like to read muddy texts written by people suffering from technical brain twisting, so I give the simplest descriptions.

So far the following have been described:

IN public library TradingView contains thousands, many thousands of indicators and indicator systems:

150 indicator systems

I also spent a lot of time collecting and classifying indicator strategies for binary options on the forum. The result is a catalog sorted by timeframe. On the forum you can download them for MetaTrader or use them immediately on your live chart.

The indicators there are very different: arrows, trend indicators, reversal indicators, with redrawing, without redrawing, green and grey-brown-crimson. The choice is luxurious, for every taste.

The best and most accurate indicator for binary options

You have already gone through enough training stages in ours to understand that there is no such miracle. But that's good. Why?

Imagine that one asshole got an indicator, which is guaranteed to provide successful transactions. Where would we all be then, together with the brokers? It is only because technical analysis is an imprecise, subjective science that the market breathes competition and the patient take the money of the weak. Here, control over emotions, the ability to manage money and risks, rather than specific systems, are much more important. If a citizen or a group of citizens appears here, “vanging” the market without fail, the time will come to dry crackers, and for everyone at once.

Luckily, it's fantastic. Always predicting the market accurately is like predicting the future of your country from history. The general vector can be approximately determined, but the exact one cannot. So our government, having already dropped the ruble by almost 3 times, makes big eyes and makes excuses after the fact.

A certain Sechin managed to incorrectly predict the price of oil 7 times in a row. Eh, guys. If the head of Rosneft 7 times in a row cannot predict the price of oil (and he is supposed to, by virtue of his position), what can we expect from some indicator for UKOIL (Brent oil ticker).

What is a reliable indicator for you personally?

This is it - good question. Because over time you understand which indicator is really good for you personally. For you have studied it inside and out, in a variety of ways. market conditions. Only after hundreds/thousands of hours of testing can the indicator become “native”.

For me, these were Bollinger Bands and Stochastics. I love the classics. I don't need complex systems. The basis of my work is Dow theory with a significant admixture fundamental analysis. And these two indicators are help, and then only in some cases. Often there is no need for them at all.

Bollinger for me is a channel volatility indicator. It's such a big worm, its sides swell with volatility or shrink when the worm is starving and the price barely moves. Volatility as a reflection of the cyclical strength of the market helps when dealing with support and resistance.

Well, I use stochastics exclusively in sideways movement (consolidation). In my experience, this is where the stochastic performs best, and its overbought and oversold conditions provide filtering of entries from p/s. The stochastic has many tricks, described in the articles of its creator, George Lane.

For example, Stochastic RSI is good in the overbought/oversold zone at the 2nd successive top, which is slightly lower than the first, with moderate sideways price movement:

And there are a lot of such tricks. There are "hooks" that it forms in certain conditions, well, divergence is generally a powerful tool. This way the indicator will become a whole world that you build into your system.

Only after gaining many hours of experience will you be able to say that yes, this is an excellent “turkey,” as traders jokingly call indicators.

Binary options without indicators

Is it possible to work with binary options, and even Forex, without indicators at all? Undoubtedly. Have you forgotten that the charts are just price movements? This is just a column of numbers, and a graph is their visualization. You can predict price movements using simple lines and graphic figures.

However, many people forget that Japanese candlesticks are also an indicator. Therefore, when we use candlestick combinations, we use, so to speak, a base level indicator.

And of course, I gradually incline everyone on the site to indicator-free trading, be it price action or the foundation in the form of the Dow Theory and support/resistance. My work schedules often look like this:

Non-indicator trading involves extensive use of:

• technical and fundamental analysis;
• candlestick patterns, figures, their combinations and behavioral models;
• moving averages as an alternative to trend lines.

At its core, indicator-free trading helps you understand the essence of markets and teaches you to perceive their movements without numerous crutches.

Choose your indicator

So, let's summarize. There are tens of thousands of indicators, and they all show the past by structuring old data. Therefore, there is no need to sort through hundreds and thousands of them. You just need to choose your favorite indicator, thoroughly study its operation in different market conditions and integrate it into your trading system. This way you will get an excellent working tool.

If you fanatically enter on the arrows of any indicator, forgetting about technical analysis, Dow theory, news and other trading elements, you will be disappointed. So take the indicators soberly - as an additional assistant, one of the elements of your trading system, which is patiently created for yourself.

There is no need to rely on the indicator as a magic wand. He does not work and cannot work in this capacity. This is just an assistant, sometimes useful, but often there is no need for it.

• Back:
• Forward:

Technical analysis is the basis without which it is impossible to achieve success on the financial exchange. The necessary market research helps to carry out special algorithms - indicators. Based on their testimony and messages, the trader makes the final decision regarding a particular asset. Typically, traders use two or three instruments simultaneously in their trading strategy in order to minimize the percentage of false signals.

Indicators are divided into types

Indicators, which we will focus on in this review, also play a huge role. Without them, trading turns into banal guessing. Both standard programs and those developed specifically for this market can be used for analysis.

Most experts are inclined to believe that best indicators for binary options with average and long term expirations are classical instruments. On short time frames, specialized algorithms are considered more effective, although this statement is far from clear. The following groups of programs are distinguished:

• Trend indicators. Using these tools, you can determine the presence of a trend and its vector. A significant part of the representatives of this category are algorithms based on . It should be noted that in binary options strategies, trend indicators are usually used as an additional tool.
• Oscillators. Their main task is to determine the levels, upon reaching which the price will stop forward movement and turns in the opposite direction.
• Volume indicators. These indicators are used to determine the activity of other trading participants.

The best indicators for binary options

Modern traders have the opportunity to choose from hundreds of technical analysis algorithms, and the majority of these tools are completely accessible. I offer a selection. Only classic indicators are presented here.

Bollinger Bands

Bollinger Bands are an indicator formed by three moving averages, one of which is central, and the other two are equidistant from it. The higher the market volatility, the wider the channel, and vice versa.

Trading signals arise when the price curve touches the boundaries of the Bollinger Bands, which serve as support/resistance levels. The main bet here is that in most cases the price will be based on them. Crossing any of the lines indicates the presence of a strong trend that will continue.

A signal to purchase an UP option is generated when the price:

• came into contact with the lower border and went up;
• broke through the upper limit;
• bounced off the upper border and reached the lower border, but did not break through it.

A signal to purchase a DOWN option is generated when the price:

• came into contact with the upper border and went down;
• broke through the lower border;
• bounced off the lower border and reached the upper border, but did not break through it.

RSI

The RSI oscillator displays the moments of trend reversal and at the same time determines the strength of price movement. On the indicator chart we see a curved line that most of the time moves between the 30% and 70% levels.

A signal to purchase an UP option occurs in the following situations:

• the RSI line fell into the oversold zone, that is, below the 30% level;
• the next price decrease during a downward trend was not confirmed by the corresponding movement of the indicator curve (divergence);
• the RSI line is going up, staying around 50;
• a downward price reversal is refuted by the behavior of the oscillator line (a reverse divergence has formed).

A signal to purchase a DOWN option occurs in the following situations:

• the RSI line has risen to the overbought zone (above the 70% level);
• another price increase during an uptrend was not confirmed by the corresponding movement of the indicator line;
• the RSI line is going down, staying around 50;
• an upward price reversal is refuted by the behavior of the oscillator curve.

MACD indicator

Considering best indicators for binary options, there is no way to ignore such a program as MACD. This is a universal tool that helps determine the likelihood of a price reversal and the strength of the current trend. The readings are displayed on the graph either as two lines (fast and signal) or as a histogram. In some cases, a combination of bars and curves may be used.

A linear MACD signal to purchase an UP option is generated if the following conditions are met:

• the fast line passes through the signal line from below (stop loss under the last low);
• both lines are located below the zero mark, while their values ​​are minimal and negative;
• in a downtrend, the price continues to decline, and the MACD begins to rise (divergence).

A linear MACD signal to purchase a DOWN option is generated if the following conditions are met:

• the fast line passes through the signal line from above (stop loss above the last high);
• both lines are located above the zero mark, while their values ​​are maximum and positive;
• in an uptrend, the price continues to rise, and the MACD begins to decline (divergence).

The histogram signal to purchase an UP option can be considered:

• growth of bars after a fall (stop loss is placed under the last low);
• growth with a downward trend, while the price updates the minimum (divergence).

The MACD histogram signal to purchase a DOWN option can be considered:

• decrease in bars after growth (stop loss above the last high);
• decrease in bars during an upward trend, while the price updates its maximum (divergence).

The indicator demonstrates its greatest effectiveness in markets with high volatility. To confirm reversal signals, you should definitely use additional analysis tools.

Using this trend indicator, the moment of closing the current position with the subsequent opening of a transaction in the opposite direction is determined. The program's readings are displayed on the price chart in the form of successive points forming a parabolic line.

A signal to purchase an UP option is generated in the following cases:

• the dots are located below the price, which indicates an upward trend;
• the points crossed the price chart from above.

A signal to purchase a DOWN option is generated in the following cases:

• the dots are located above the price, which indicates a downward trend;
• the points crossed the price chart from below.

To open positions following a trend, you should wait for at least three points in a row to form. It is better to react to reversal signals only after receiving confirmation of the previous trend. In binary options strategies, Parabolic SAR is usually used as an auxiliary tool to check the signals of other indicators.

Stochastic

Let's finish the review best indicators for binary options description of the legendary oscillator. Using this tool, you can determine the direction of the trend and predict its reversal. On the program chart we see two lines K and D, which most of the time move between the levels of 20% (below is the oversold area) and 80% (above is the overbought area).

Prerequisites for the appearance of a signal to purchase an UP option:

• one of the lines drops into the oversold area and then returns back;
• line K is located above D;
• updating of the next price minimum during a downward trend is not confirmed by the oscillator (divergence).

Prerequisites for the appearance of a signal to purchase a DOWN option:

• one of the lines rises to the overbought area and then falls back;
• line K is located below D;
• updating of the next price maximum during an uptrend is not confirmed by the oscillator.

The divergence must be extremely clear; if there is the slightest doubt, you should not respond to the signal. In addition, you need to be sure that you havestrong trend. The best way The use of Stochastic in binary options strategies is to check the signals of other indicators.

To obtain a more accurate signal, you can use two Stochastics simultaneously with different parameters, for example: 21, 9, 9 And 9, 3, 3 .

Here is an example of such a transaction:

A clear signal to buy the option was received DOWN, since both indicators crossed in the upper overbought zone. I immediately bought an option for 9 minutes:

The best indicators for binary options, of course, have earned such recognition for a reason. Their combination will allow you to accurately determine the entry point into the trade, and the chart settings will indicate the option period.