Binary Options Indices and Indicators
Binary options indicators are dedicated software which give you signals with high reliability. You can make use of these software to improve your winning ratio and make big profits. A binary options indicator works on the basis of binary options charts. The software reads the charts and makes predictions which you can use to trade.
A binary options indicator works on the principal that what goes up comes down and vice versa. If there is a strong upward movement of the price level of a particular asset in a small period of time without any obvious reason, it can be assumed that the stock price will fall back to its normal level. Similarly if the stock price of a particular binary options asset falls sharply without any obvious reason, it can also be assumed that the price level of the stock will soon increase.
In order to use a binary options indicator you first need to download the software. After installing the software you can run it and continue with your routine work. Remember to stay logged into your binary options broker’s account so that you can make a trade as soon as you get a signal.
The binary indicator software will continue to run in the background and as soon as it detects a sharp change in the price level of an asset, it will notify you. Now you can select the stock and invest an amount in the opposite direction of the movement. It is important that you select a descent period of time like an hour to allow that stock price to return to its normal value. In this way you can trade binary options and make a lot of money even without having to read the charts by yourself.
William Indicator - The reverse of the Fast Stochastic Oscillator
The William indicator was developed by Larry Williams and is commonly referred to as their indicator. This indicator can also be seen as the reverse of the Fast Stochastic Oscillator. The William indicator shows the close level relative to the highest high for the period of time taken into account. For any market condition the William indicator oscillates between 0 and -100.
The most commonly used setting for the William indicator is 14 periods where each period can be a day, a week, an hour or similar time frames. -50 William line acts as the midpoint as oscillates between 0 to -100.
If their indicator value goes below -80, it indicates low level and a reading above -20 indicates that the asset price level is trading at a relatively high level. Hence, the value of greater than -20 shows an overbought condition while a value less than -80 shows an oversold condition. The William indicator can be used to figure out the run of an asset. If the asset remains above -20 for a long period of time, it indicates that the stock is going strong.
Similarly, if an asset gives value less than -80 for long durations of time, it indicates the weakness of the asset. For making a prediction you should wait till the falls below the oversold level and then crosses -50 mark. You can go long in such a situation. It is recommended that you do not select small time periods for analysis as this may give some false signals due to market volatility.
Moving Average Convergence Divergence (MACD) Indicator
Moving Average Convergence-Divergence (MACD) is one of the most popular binary options indicators which can be used to make reliable predictions. MACD was developed by Gerald Appel in the late seventies and since then it has emerged as one of the simplest and the most efficient indicators. MCAD is a kind of momentum indicator which turns the two trend-following indicators, moving averages, into a momentum oscillator. MCAD subtracts the longer moving average from the shorter one to find the momentum. It can be used for both trend following and momentum.
MACD relies on the convergence and divergence of the two moving averages. The two moving averages are generally 26 day moving average and 12 day moving average. The 26 day moving average is the longer moving average while 12 day moving average is the shorter moving average. The 12 day moving average is fast and responsible for most of the MCAD movements. The 26 day moving average is slow and reacts weakly to the price change of an asset. When the two moving averages move towards each other, convergence occurs and when they move away from each other Divergence occurs.
Whenever the MACD line falls below the signal line, it indicates a bearish signal. It means thatyou should sell the stock. Similarly when the MACD line goes above the signal line, it indicates a bullish signal. When the MACD line diverges away, it indicates that the current trend will come to an end soon. This way you can predict the market movement correctly using MACD.
Relative Strength Index (RSI) Indicator
Relative Strength Index (RSI) is a binary options indicator which can identify the oversold and overbought conditions. Relative Strength Index uses candle chart studying and the default period to be considered is the 14 period. It means that the last 14 candle sticks are taken into account. 15 minute candle sticks are the most preferred. In order to do the analysis you will need an advanced charting software which most of the binary options broker do not offer. So you must look for an independent charting software.
In order to use the indicator, select the asset and insert RSI, Stochastic and FiboPiv v.2 to the chart and create a template to remember it. While adding RSI, insert 25, 50 and 75 RSI lines. After this you need to analyze the price chart. If the RSI line goes above 75, it indicates the overbought condition. It clearly indicates that the price level of the asset will start falling down soon and you should invest accordingly. If the RSI line goes below 25, it indicates an oversold condition.
At this point the price level of the stock is likely to start rising and you should use the Call option in binary options trading at this moment. It is recommended that you use 15 minutes as the expiry time when trading. The key advantage of this strategy is that it is very simple to analyze, use and effective at the same time. New traders looking to learn some binary options strategies can start with the RSI indicator.
Binary Options Indices
There’s no wonder that the binary options trading is regarded highly risky when it comes to financial instruments. In the binary options, speculations are made on asset’s price at some specific point of a day. Speculations made have little modification price and due to which it becomes hard to predict. The traders have to speculate the direction of asset’s price and check their performance. It is in fact very crucial to be aware of the circumstance in advance in order to observe their probable profit or loss.
Binary option trading is one of the easiest techniques for traders to follow and they do differ in their forms. Doesn’t matter what techniques the traders would use, the trading strategy has two options i.e. the call option & put option. In the call option the trader gets the opportunity to have a contract fixed before whereas in the pull option is the option which the trader gets once sales have been made at amount that’s fixed in advance.
The use of indices is other simple form of binary option strategy. It’s quite simple to use and is compatible with the majority of the platforms. The index marketing involves some of the main stock exchanges that are regarded as the finest tools for investors while using binary option trading. The indices are volatile & liquid and hence they create numerous opportunities to make profit. The indices such as NASDAQ, DAX, CAC, FTSE, Dow Jones Industrial Average and several others are available in all platforms of binary options.
These are in fact various types of strategies one could use. Irrespective of what type you will use, it is most significant to utilize them in proper manner and make predictions appropriately in advance.