Binary Options Trading Signals

Binary Options Trading Signals has been determined by independent experts to offer extremely accurate signal trading solutions for online traders, it guides traders trade with right directions of market prices movements. It has been gossiped traders can win 4 out of 5 trades for each time they try on the system, and without the help of such signals, traders will not be able to attain such an accuracy rate themselves.

Binary Options Signals are software, developed by Binary Options Signals Providers, used to analyse price fluctuations on different assets on the market. Normally, to trade Binary Options successfully, traders have to sit in front of their computers 8 hours a day to analyse and figure market trends. So, it is quite labourious.
With Binary Options Signals, the story is different. The Signals Software will sweep the charts of popular assets and each time it discovers a trend in developing, it will notify the trader to make appropriate investments. Binary Options Signals can also work automatically, as they can automatically execute a trade based on discovered trends.

Some traders strongly believe Binary Options Signals are the best way to make money, while others claim that the signal is a complete scam. Whatever your perspectives, let’s look at advantages and disadvantages of Binary Options Signals to evaluate them yourself.

Binary Options Signals Advantages

• Trade Binary Options without excessive emotions or sentiments, which could help you avoid problems with over trading or an inability to trigger on a trade.
• The Signals can trade 24/7, which can help you never miss a single chance of profitability. Traders can trade continuously whether you’re running Binary Options Signals on your own or you receive them from a Signal Service Provider.
• Traders will have more consistent wining trades with automatic trading than the manual one.
• Traders can program Money Management into the signals and relieve yourself of the need to remain disciplined when you want to trade more money than the Money Management calls for.
• Signals are able to identify complex market patterns, which human beings are not impossible to see
• Signals can be triggered automatically and traded within milliseconds, no missed trades never occurs.
• Complex profitable trading strategies are applied, which are only possible when automated trading signals being used.

Binary Options Signals Disadvantages

• Binary Options Signals offer little flexibility. Traders are limited to a single asset. Even some signal service providers require traders to work with one specific broker.
• Binary Options Trading completely depends on technical data and signals. This may constrain you analyse data in fundamental analysis way because if analysing data in combination Technical Analysis with Fundamental Analysis, the result usually generates superior winning trades.
• When using Signals, which then will take you enter the market at predictable levels, opening up your trades being hunted by others.
• Some providers may provide false signals, which do not reflect the actual market conditions.
• Unusual market conditions can disjunction trading signals, which might result in large losses in just a short period of time.
• If traders are unable to trade immediately after they receive the signals from a signal service provider, the signals seem to lose their impact. Though it is not a big problem if you use automatic signals, the matter of slippage is worth considering.
• Automatic trading signals can be in errors due to programming and hardware failures. Data transmission errors can also result in unexpected losses when using Binary Options Trading Signals.

To anticipate future price movements of Binary Options, traders mostly work with the two major methods, Fundamental Analysis and Technical Analysis. Fundamental Analysis studies the changes in countries’ economic strength, politics, natural disasters, weather conditions, etc., to determine the long-term trends of asset’s price, while Technical Analysis uses Binary Options Charts to study current price movements on the markets on an hourly basis or less (short-term trends).

Binary Options Charts in Technical Analysis

Traders that are unfamiliar with Technical Analysis mostly feel confused at the first time they view Binary Options Charts. The combination of candles and bars showing the prices associated with some distinctive indicators reflecting possible price movements may be hard to understand at first. Particularly, new traders tend to have difficulty in analysing the meanings of indicators.

Though many beginners give up on studying Binary Options Chart, it is proven in the past that we can predict the price trends accurately based on the Charts. An additional study to complete understanding how to use the Charts and indicators is necessary for the purpose of wining profits from Binary Options Trading. That could happen if traders persist and dedicate to his goals.

Though there are hundreds of indicators available in the Charts, you should know that not all of them are used to predict the price trends. In reality, it’s advised to narrow down the use of indicators to just a few so that the Charts can become clearer and predictions will be easier to make.

Most Binary Options Trading Strategies only make use of no more than 2 – 3 indicators in anticipating the future price movements such as Moving Averages, Bollinger Bands, and Relative Strength Index (RSI). There exists a small group of traders, who think that they can trade without indicators, using just price movements to judge market’s sentiment and market’s future prices.

A trader, who is right about 60% of the time, is able to earn huge profits with Binary Options. The level of success will be increased much more if traders know to combine perfectly the use of Binary Options Charts and market indicators.

Once involved in financial trading, traders need to know methods how to predict price movements in order for identifying the suitable time entering and exiting the trade. One of the most mentioned methods is the use of Charts to plot price trends via Technical Analysis.

Two of the most common types of Charts are Bar Chart and Candlestick Chart. Both provide four important parts of information: highest, lowest, opening, and closing prices over a given time frame (usually on a trading day).

• Bar Chart uses vertical line to reflect time frame, while horizontal bars on the left representing the opening price and horizontal bars on the right stating the closing price.
• Candlestick Chart uses the length of a candle body to indicate the information. The upper end of the top shadow of the candle represents the high while the end of the shadow indicates the low. The middle body reflects the difference between the open and the close of the time period. Additionally, different colours are applied if the opening price is higher than the closing one.

These Charts provide patterns of Support and Resistance levels, which are related to Market Supply/Demand. Support is the point at which prices fall far enough to influence Supply, then stop dropping. Resistance is the point at which prices increase high enough to influence Demand, and so stop increasing. On a Chart, traders can spot where a decreasing sequence reaches to a point below which it never falls to, that is called the Support level that is indication to buy. Besides, they can spot where an increasing sequence reaches to the point above which it never increase to, that is called the Resistance level and an indication to sell.

To analyse Chart Patterns, traders should also learn the basics of Moving Averages. By averaging out the data and smoothing price fluctuations, traders would be able to gauge directions of a price trend. When a price drops below the moving average, it is an indication to sell, and when it rises above the moving average, that is an indication to buy.

Bollinger Bands are another method to analyse Chart Patterns. Bollinger Bands are plots on a Chart, including two standard deviations above and below a simple Moving Average. Due to the market volatility, the distance between the bands may become either wider or narrower.

• If the price moves closer to the upper band, the more overbought the market is. So, it is a sell signal.
• If the price moves closer to the lower band, the more oversold the market is. So, it is a buy signal.

Price moving in trend is one of the basic principles in financial trading, thus, Chart Patterns are very important in trading. There are many other techniques to analyse Chart patterns as well, but these four being the most popular, and if you after taking all the techniques and pinpoint in the same direction, you have clear signal to trade.

Candlesticks Charts permit a trader to make decision in simple and broad way within a single look. The Charts are studied in Technical Analysis of prices. Though popularly being used in Charts, Candle patterns are infrequently used when making a trade. The Candle patterns are robust indications of how and when prices movements tend to act in the future. The patterns provide a lot of information about price directions, which are very practical for Binary Options traders, who need to predict whether the price will rise or fall.

Study the Candlestick
Prior to your application of Candlesticks in Binary Options, it is necessary to first study the anatomy of the Candlestick pattern: the upper end of the top shadow of the candle reflects the HIGH while the end of the shadow represents the LOW. The body in the middle indicates the difference between the open and the close of the time frame. Besides, the distinctive colours are applied into the Chart to identify if the opening price is above the closing price.

Candlestick Patterns
Candlestick Charts are used practically in deciding reversal trends, exit and entry points for the newly-formed trades. In a given time period, Candlesticks provide much information about the OPEN and CLOSE, HIGH and LOW. The patterns allow you to identify the potential price reversals. When the prices reflect a strong downward trend, there is a chance for Call Option, which is called a bullish reversal candle. Otherwise, when the prices denote a strong upward trend, there is an opportunity for Put Option, which is called a bearish reversal candle.
Through comprehending the anatomy of a Candlestick pattern associated with the way how the pattern works, traders can trade Binary Options at optimum level. Nowadays, Candlestick is underused, but with persistent research, it is a great method to grasp better profits on Binary Options market.

Following information is designed for new traders who are novices in Binary Options Trading. Some of the useful indicators below definitely help to improve your trading skills and styles.

1. Zig Zag Indicator

This is the very simple and easy-to-understand indicator which can be found in MetaTrader Platform. The Zig Zag Indicator helps to identify tops and lows of the market precisely. It is a trend-following indicator, which tries to clear out random short-term price fluctuations in favour of long-term reversal. This indicator will change its direction when asset’s direction has been changed and moved over a specific amount. This creates a series of straight lines that make a pattern of ZigZag across the Chart. The indicator is mostly used in wave analysis, and because Zig Zag Indicator bases on a huge movement to trigger a change, it is not the best for short-term Binary Options traders.

2. Barry.Mq4

As a simple indicator, Barry can draw Support and Resistance levels. Knowing levels of Support and Resistance is necessary, but the beginners may find difficult to understand them at first. The Barry Indicator helps to know the locations of the Support and Resistance levels. Simply install the indicator to MetaTrader Platform and then drop it on your Chart, the red lines will represent Resistance levels while the blue lines signify Supporting levels. Please note that this indicator can’t be used to specify the future of Support and Resistance levels. It is merely drawing Support or Resistance levels, which have already occurred.

3. Overbought or Oversold

These indicators are used to analyse overbought and oversold conditions. An overbought condition is a situation where the asset’s price is much above the normal level, and perhaps there will be a fall. Oversold condition is the opposite case: the asset’s price is much below the normal level and maybe there will be a rise.

4. RSI & Value Chart

In MetaTrader Platform, RSI (Relative Strength Index) can be used to identify the two conditions of overbought and oversold. According to many traders, they use the level 70 for overbought and level 30 for oversold. For safer outcomes, you can also use level 80 for overbought and level 20 for oversold. In the Charts with RSI, you have overbought at highs and oversold at lows. The value chart indicator works on the same targets. Green bars are referred to as bullish (increasing value) and red bars are bearish (decreasing value).

5. News Indicator

A news indicator signifies to traders whether there is some news for the market or when the brokers will have news releases. Though the strategy is not to adhere to the news, having them in mind enables you to know what time there is news to take notice of. Disregarding news can ruin your trades.

6. Bollinger Bands

Created by John Bollinger, this indicator aids you in locating the Support and Resistance levels. There is a simple moving average, usually 20 periods, the two bands (up and down) can work as Support & Resistance levels for the price.

Bollinger Bands are defined as the lines plot the two typical deviations above and below a simple Moving Average. Bollinger Bands are to address the non-linear lines of Support and Resistance to warn traders of market volatility. The further apart of the band is, the more volatile the price is.

7. Daily Pivot Indicator

This automated pivot point indicator draws the daily pivot, weekly pivot and monthly pivot along with all support and resistance levels (S1, S2, S3, R1, R2, R3). It aids traders to buy CALL options above the pivot point and to buy PUT Binary Options below the pivot point.

8. Harmonic Patterns Indicator

Harmonic Patterns Indicator is an advanced concept of Technical Analysis, which requires practitioners to spend time learning how to draw them. This indicator draws harmonic patterns on the MetaTrader 4 Charts and generates some trading signals with entry points, stop-loss, and probable targets. It works for all pairs and time scales. Harmonic trading tries to predict the future movements of prices via harmonic price patterns. The harmonic patterns can measure how long the current moves will last and they can also be utilized to set apart reversal points.

9. Fibonacci

Fibonacci tools use special ratios to predict points of Support and Resistance. Fibonacci numbers are 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc. The sequence works by adding the former two numbers (i.e. 1+1=2, 2+3=5). The major ratio used is 0.618, which stems from diving one Fibonacci number into the next number in sequence (55/89=0.618). There are many Fibonacci tools and Fibonacci Retracement in many most common in Technical Analysis. It is formed by taking two extreme points on a stock chart and dividing the vertical distance with the important Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, and 100%. After these levels are specified, horizontal lines are drawn and interpreted to find possible areas of Support and Resistance.

10. Moving Averages

Moving Averages plot the average value of a tradable asset over a specific time period. It is a trend-following indicator and based on past prices. It is to give a visual representation of the asset’s price movements and to spotlight Support and Resistance’s possibility levels. Therefore, Moving Averages are mostly applied to identify the trend direction and to decide the Support and Resistance levels. The indicator helps traders realize long-term trends more precisely.