Making time bound trade using options like commodities, forex, stock indices, events and assets is something that best defines binary option trading. Grown as one of the most potent form of trading, binary options have revolutionized the world of currency market and have given traders a new outlook about how every simple trade can actually allow them to make a fortune. Here, enhancing the binary trading style of traders are binary options indicators, which allow traders to understand the current market in a better way and thus be careful about each move that they make with their binary options.
Know More about the Different Types of Binary Options Indicators
The binary options indicators that are often offered by reputed binary brokers are broadly classified into five categories which are
- Barry Mq4: Barry Mq4 deals with the resistance and draw values of the binary option. Knowing these values is crucial, especially for beginner who deals with initial complications when new in the game. This indicator helps them in realizing the resistance and draw values for every trade that they place. Using this indicator is quite simple, traders just have to install it in MetaTrader 4 account and then study the indicator where the red lines indicate resistances and the blue lines indicate support.
- Zigzag Indicator: This one of the most popular indicators which is already preinstalled in MetaTrader platform. Such indicators allow the traders to know more about the upward trend and downward trend of the market.
- RSI & Value Chart: The RSI & Value Chart indicator is quite similar to that of Barry. It holds two levels where red bars are considered to be bearish and green bars are known as bullish. Best thing about this indicator is that it can go to a maximum of six levels and uses about +8 to -8 labels for tough situations and +6 to -6 for normal situations.
- Oversold & Overbought: This is another simple indicator after Zigzag indicator where two conditions are examined “oversold” and “overbought”. Now, overbought condition is a situation where the demand of the binary options increases than its normal value, whereas oversold is just the opposite of this situation. If there is an asset which is suffering from oversold situation but possibly will get its value back in the market; this is better understood using this indicator.
- Bollinger Bands: This is an innovative binary option indicator that was crafted by John Bollinger, which deals with support and resistance value. It moves in a 20 period bands, specifically two bands one goes up and the other down. These are just like the S&R value for the price of the binary options that you are willing to trade.
Bottom Line – Use of Binary Options Indicator is Essential!
If you are planning to rule the world of binary trading without the use of binary options indicators then it is just like tracing your way back in the lost woods without a map. To systematize, plan and place your trade in an approiate way usage of binary options indicator is a must!