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Best indicators for binary options: technical analysis indicators + top 10 best indicators for binary options

Best indicators for binary options: technical analysis indicators + top 10 best indicators for binary options

It just so happens that not a single binary options trader can do without technical analysis indicators. Someone, of course, is an ardent fan of the “clean chart” and levels of support and resistance, but even such people often resort to the help of indicators.

It is beneficial to use indicators - they allow you to get structured money and relieve the binary options trader from lengthy mathematical calculations and complex formulas. I added the indicator to the chart and it immediately did all the work for you - it showed exactly what you expected from it, and, in most cases, the data from the indicator is visually clear even to novice traders.

In this article, as you already understand, we will talk about technical analysis indicators for binary options, and also, as a bonus, you will learn about the ten best indicators that traders most often use in their trading.

What technical analysis indicators show

First of all, you need to understand one simple truth - technical analysis indicators do not show the future. At best, they will show you the current state of the market, and the trader himself must make the right decision and open a deal on time. In most cases, indicators will show the past of the asset - this is not surprising, because the indicators use data from already closed candles.

It would seem, what can an indicator that shows what has already passed give a binary options trader? In fact, everything is not as simple as it might seem at first glance. For the most part, the market is a chaotic set of variables, but in some cases it behaves quite predictably or even naturally. It is these patterns (and there are tens of thousands of them) that indicators find.

You don’t need to look far for an example - let’s take the RSI indicator (aka Relative Strength Index). The indicator shows us the moments when the price is out of balance - overbought or oversold. It takes data from past prices and if there is a sharp change in the price level of an asset, the indicator tells us about this - “now the price is outside its usual state!”

And the price is in this “habitual state” about 95% of the time, which gives us reason to assume that soon the price movement will return to its usual habitat - there will be a reversal:

RSI on a chart

If we talk about this situation directly, we get the following: an indicator that takes its data from a past asset is capable of determining the future. Whether to use this data or not is the choice of every binary options trader, but the indicators work and it is stupid to deny this.

The problem is that not all traders understand how to use them correctly for maximum profit. An indicator can be both a way to achieve a goal (wealth) in skillful hands, and a cause of failure if its “owner” does not know how to handle it.

For now, you should remember only one thing - indicators reveal imbalances in the market, and the market, in most cases, strives to be in a state of balance. It is also worth understanding that different indicators have different tasks - some will show you “violations of the rules”, while others will help you easily find entry points in a “calm market”.

Why are indicators needed in binary options

Let's return to the “sect” of fans of the “pure chart” (a group of people who make forecasts only using candlestick analysis or technical analysis figures). So, these traders don’t understand the “fun” of using indicators in binary options trading at all. Are they right?

Over the past few years, I have had to communicate with a lot of different traders who inspired me that their trading method is the only correct one - as many traders, so many opinions. It's funny that they actually made money by making predictions for reasons known only to them. But I didn’t sit in one place and, unlike all these people, I understood one simple and important thing - it doesn’t matter what trading method a trader uses, as long as this method brings him money.

It is worth soberly assessing the entire flow of information and drawing the right conclusions:
  • Trading on a clean chart is real
  • News analysis is a good way to earn money
  • Technical analysis figures - they work
  • Candlestick patterns - an effective method proven over the years
  • Coin toss - with good risk management even this will work
  • Technical analysis indicators - why not?!
The question is not what works and makes money (everything works with the right approach), but is it all necessary? The volume of information is so enormous that a binary options trader involuntarily has to choose what is worth studying and what to leave for later or skip altogether.

The easiest way to understand whether you should use indicators in your trading (in this article we are talking about indicators) is to decide what you want to get in the end. You must have confidence in the trading method you want to use to make a profit. Trust arises only if the trader fully understands how the signal mechanism works.

This is why there is a “cult” of fans of the “pure chart” - they understand how the price of an asset is formed, but cannot understand how technical analysis indicators work - for them it is something fantastic, which means that there is no trust in it.

What's the reality? In one of the previous articles, we looked at moving averages – Was there anything complicated in the design of this indicator? No! The usual formula, understandable even to a child - data is taken from already formed candles, processed by the formula, and as a result, an average value line is formed on the chart. All this can be done manually, but why if there is already an indicator that will do everything for you?!

moving average on a chart

Any technical analysis indicators are designed to make life easier for a trader. They don’t have to be used all the time, but if you need to get any data, then you can’t do without indicators - they act as an assistant, allowing you to filter the signals of your trading systems or, for example, technical analysis figures.

There are no, and never will be, 100% strategies in trading, so it is very important to tip the scales of the probability of a correct forecast in your favor. Personally, I consider this to be the primary goal, and the methods that will be used to achieve the best result do not matter. If the situation requires filtering with candlestick patterns, then it would be foolish to refuse; if indicators are needed to confirm the signal, they must be used.

But you should not use indicators where they do more harm than good - everything should be justified and beneficial for the trader himself. Avoid the mistakes of beginners who add dozens of indicators to the chart, and then themselves cannot understand what exactly the market is telling them.

It follows that any indicators should complement your trading system:
  • Trade with the trend - use trend indicators to search for signals
  • Trading sideways - use indicators to help identify turning points
  • If you trade against the trend, indicators that determine the imbalance in the market and the possible end of the trend will help you
It is also worth combining indicators so that they compensate for each other’s shortcomings - weed out (filter) false signals.

Binary options indicators that everyone should know about

There are not such a large number of “universal” indicators - indicators that are used very often in binary options trading. Even if these indicators are not used in their pure (original) form, you will definitely come across their modifications. In general, you need to know and understand the operation of the following indicators:
  • Moving Average
  • Bollinger Bands
  • RSI (Relative Strength Index)
  • CCI (Commodity Channel Index)
  • MACD (Moving Average Convergence Divergence)
  • Stochastic
  • Alligator – trend indicator based on several moving averages
  • ADX (Average Directional Movement Index)
You must understand how these indicators work and when it is most beneficial to use them.

In fact, there are quite a lot of indicators for technical analysis - tens of thousands, and new ones appear all the time. Keeping track of everything and having time to study everything thoroughly is an impossible task, so it is worth concentrating your attention on the main indicators, with the expectation that they are taken as the basis for writing new “helpers”.

The best and most accurate indicator for binary options

We are all interested (and will always be interested) in the best and most accurate indicator for binary options. Everyone wants to think a little and earn a lot, the only problem is that there is simply no such “best and most accurate indicator”, just as there is no “get money” button.

You should be well aware that no indicator will make money for you, especially considering the fact that all indicators use data from the past. All the indicator can do is point you to the area of the chart that you need to pay attention to. All other actions depend solely on you.

It follows that you should not trust people selling this “best and most accurate indicator” - at best, you will receive a product that at least will not drive you into the red. In the worst case, you will pay a lot of money to acquire this “miracle” and lose a round sum in attempts to trade using its signals.

In fact, if you are looking for the best and most accurate indicator for binary options, then I have one and I won’t ask for money for it! Of course, this is just my opinion (although many will agree with it) - we are talking about the Bollinger Bands indicator:

the best indicator for binary options

Why should Bollinger Bands be considered the best and most accurate indicator? It's simple! Indicator:
  • Works great in sideways price movements - you can catch pullbacks
  • Defines the beginning of a trend
  • Determines moments of overbought and oversold prices (and not only in sideways, but also in trend movements)
  • Determines the end of a trend
  • Shows the direction of the current trend and its entry points
Simply put, Bollinger Bands is an indicator for all occasions! With such parameters, shouldn’t this indicator be considered the best and most accurate?! The only thing is that Bollinger Band signals need to be understood correctly, and this is not so easy. But if you want to live, then know how to spin! Nobody said that everything would be simple.

In practice, this indicator can completely replace several hundred other “competitors”. Its work is clear, and the calculation formulas do not require you to know advanced mathematics. If you look at it, then this is a very simple and understandable “toy” that can bring enormous profits. But it takes practice, practice, and more practice.

Binary options without indicators - reality or fiction?

Indicators, indicators, just indicators around.... What happens if you trade binary options without indicators at all? Is it even possible? And there is only one answer to this – yes, it’s possible!

Nobody forbids you to completely abandon indicators and make forecasts, guided by the same levels or zones of support and resistance. Or, for example, trade on news - at this time indicators do not work at all!

trading based on support and resistance levels

But it will be problematic to do without indicators entirely - Japanese candlesticks are also an indicator of technical analysis. They collect and display necessary and important information about price movements. And all these statements “oh, yes, I use bars, and not these Japanese candlesticks of yours” will not save lovers of “clean charts”, because bars and Japanese candles are the same thing.

Use a line graph? This is still a perversion. It’s better to admit to yourself once that you can’t live without indicators and live in peace than to go out of your way and convince yourself that you can do without indicators.

It just so happens that indicators are very closely related to trading, but you can limit yourself to Japanese candlesticks and make a profit from forecasts based on:
  • Technical and fundamental analysis
  • Analysis of candlestick patterns, figures, combinations and behavioral models
On the one hand, indicator-free trading helps to better understand price movements and the very essence of the market. On the other hand, sometimes it is very problematic to determine the exact point at which a trade will be opened; it is in these situations that indicators will be indispensable. So you have to constantly sacrifice something.

Top 10 best indicators for binary options

We've dealt with standard indicators, now it's time for indicators that can significantly brighten up your trading routine. I suggest you familiarize yourself with the rating of the 10 best indicators that you should try to use in your trading.

Of course, this top of the best indicators is compiled in my personal opinion, as well as in the opinion of some profitable traders. In fact, there are many more interesting indicators and all of them could not fit within the framework of this article.

1. Indicator for binary options SR Pro or Support and Resistance TLB OC

Probably the best indicator of support and resistance levels for binary options. The indicator can build support and resistance levels at several points (the number of points can be specified in the indicator settings):

Support and Resistance TLB OC is the best indicator of PS levels

Another important advantage of the Support and Resistance TLB OC indicator is that it builds levels on different time frames. True, only the closest levels from each time frame appear on the chart, but in practice this is enough.

SR pro indicator settings

If you don’t need any levels, you can disable them in the settings. This indicator is used in a number of very profitable trading systems and has proven itself only from the best side.

2. Indicator for binary options CCI nrp & mtf advanced

The indicator for binary options CCI nrp & mtf advanced is a modification of the usual CCI (Commodity Channel Index) indicator. A distinctive feature of this indicator is that it can collect data from different time frames, and is also capable of generating buy and sell signals:

CCI indicator - nrp & mtf advanced on the chart

Signals from this indicator are directed towards the trend. Moreover, there are signals both in the direction of a trend impulse, and there are signals indicating the end of a trend impulse and the beginning of a rollback. The indicator is very flexible to configure:

CCI indicator - nrp & mtf advanced settings

3. Indicator for binary options Vdub Sniper Bx

The indicator for binary options Vdub Sniper Bx is a whole trading system consisting of a moving average and signal indicators. The indicator is only available on the Trading View website, so if you want to use it, you will have to use a live chart:

Vdub Sniper Bx indicator

The indicator signals are considered confirmed if two arrows appear below or above the candle:

Vdub Sniper Bx indicator signals

4. Indicator for binary options 5 – 15 min Binary V2

Indicator for binary options 5 – 15 min Binary V2 is another indicator-strategy that allows you to make money on trend changes. The indicator is very well thought out and is designed for M1 time frames - for this TF the expiration time is 5 minutes, and for M5 the expiration time is 15 minutes:

indicator 5 – 15 min Binary V2

Mandatory conditions for using the 5 – 15 min Binary V2 indicator are:
  • It is necessary to wait until the lines of the basement indicator intersect
  • The basement indicator lines must be behind the upper or lower purple horizontal level before crossing

indicator signals 5 – 15 min Binary V2

5. Indicator for binary options Kill Binary Signals 2 nrp

The indicator for binary options Kill Binary Signals 2 nrp is an arrow indicator that shows fairly good entry points into the market:

Kill Binary Signals 2 nrp indicator

You won’t be able to change much in the settings, but you can adjust the frequency of signals and their quality:

indicator settings Kill Binary Signals 2 nrp

6. Indicator for binary options T3MA ALARM Alert

The indicator for binary options T3MA ALARM Alert is another arrow indicator that has earned its trust among binary options traders. The indicator is based on three moving averages (as is clear from the name) and gives a signal in the direction of trend price movement:

T3MA ALARM indicator

The indicator settings are not rich, so I don’t see much point in changing anything. Overall, we get a good switch:

T3MA ALARM Alert indicator settings

7. Indicator for binary options QQE-New

The indicator for binary options QQE-New is a mixture of a arrow indicator and a histogram that filters these signals. The mixture turned out to be very successful and the indicator is capable of giving signals in trend price movements, which will appeal to many binary options traders:

QQE-New indicator

Unlike the previous “experimental”, QQE-New has an impressive range of settings, which will allow it to be used even in very difficult situations:

QQE-New indicator settings

8. Indicator for binary options CPI (Candle Stick Pattern Indicator) v1.5

The indicator for binary options CPI (Candle Stick Pattern Indicator) v1.5 is an indicator that identifies candlestick patterns on the price chart and issues a signal to open a transaction. It would seem, what else does a binary options trader need?!

CPI indicator

The indicator does all the work on its own, and all candlestick patterns are included in the code, so you won’t be able to disable some formations:

CPI settings indicator

9. Indicator for binary options Super Trend

The Super Trend Binary Options Indicator is an indicator for the Trading View live chart. There are also options for MT4 terminals, but they are not so accurate there, so preference is given to the indicator for the live chart.

The indicator determines trend change points - they can be used to open trades for 5-10 candles. In general, the Super Trend indicator is very suitable for binary options.

Super Trend indicator

All signals from the indicator are directed towards the current trend. It is a little late, but it very accurately determines the trend movement that has begun:

Super Trend indicator signals

The disadvantages of the indicator include the fact that it does not work well in lateral movements - they will need to be filtered somehow.

10. Indicator for binary options CM Sling Shot System

The CM Sling Shot System binary options indicator is the last indicator on our list. The indicator itself allows you to find price rollbacks during trend movements. It is made very cleverly - there are two moving average that define the trend. The signal appears when the price has been in the zone between these moving average and left this zone towards the current trend:

CM Sling Shot System indicator

Unfortunately, the indicator is only available on the Trading View live chart and I did not come across analogues for MT4. In general, the idea of the indicator is very simple and clear - to find entry points during a price rollback:

CM Sling Shot System indicator signals

The best indicators for binary options – when they work

Let's assume that you have already chosen some indicator (or even more than one) for your trading. You understand perfectly how it works, as well as what signals it gives and how it reacts to price changes. Do you think this will be enough?

Unfortunately no. Indicators are tools for technical chart analysis. It doesn’t matter where they will be used (binary options or Forex), but they will always obey the laws of the market. One of these laws tells us that during the release of important economic news, all indicators and trading strategies based on technical analysis of charts can be safely thrown into the trash - they are useless.

During the publication of important economic news, the market is ruled by greed - it does not notice boundaries and does not care that the price “has been in the oversold zone for half an hour.” Support and resistance levels will break through, indicators will show fantastic data, strategies will give many false signals. And that's normal!

Indicators of technical analysis of a chart should be used only during “quiet” times from the news - it is at this time that traders will also sit and analyze the market, look for repeating patterns, candlestick patterns, support and resistance levels... There will be conditions in which your indicators will allow you to receive maximum benefit. So, before you start trading, check out the economic calendar - make sure that there are no important news that can “prove to you in a matter of minutes that your best indicator is an ordinary dummy”!
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