To implement effective trading in the futures market, a fairly wide and diverse set of services and tools for estimating and forecasting the market is used. Professional investors and analysts have at their disposal dozens, and sometimes hundreds of services. This became possible due to the high level of automation of trading processes, as well as to the growth of the number of indicator services, which in a high-speed format can estimate a huge array of market data. With the help of analysis tools, traders stand out effective strategies that allow to obtain statistical and technical advantage over the market, which affects the trading performance of the trader. Today we offer you a minimum list of analysis tools, which is necessary for the work of any trader. These resources allow not only to create a variety of strategies, but also provide the opportunity to make full use of the full potential of binary contracts for earnings.
So, we certainly can not in one material describe the operation of all indicators and technical analysis tools, so we will offer you the most effective services. Let’s start with the simplest.

Graphic Tools

To analyze trading quotes in trading, a wide range of graphic resources is used, both classical and semi-automatic services for identifying market patterns. Based on such tools, strategies and approaches to highly efficient trading in the market are built. A standard set of analysis tools should include the following list of services:

• Standard – rays, lines, geometric shapes, drawing tools on the chart
• Semi-automatic resources – for example, a service for calculating Fibonacci levels, a tool for patterning the Gartley pattern (butterfly), A plug is a tool for constructing regression channels

Necessary Toolkit for analysis to each trader

Such tools have the best possible performance indicators in the development and use of highly professional trading strategies in binary trading. Here are some standard approaches to using graphics services.

Graphical analysis tool “Line”

This is an indispensable service for fans of the “Price Action” strategies or the analysis of clean graphics. This service is often used to build on trading quotes a variety of trend levels or geometric patterns to predict market fluctuations. The classic strategy format on the graphic line is trading at the trend levels. A simple connection of a line of minimums or highs of the market in a certain period of the construction of quotes allows you to determine the price levels of the market movement, to which the graph reacts with logical bounces in the opposite direction:

Graphic Tools for Traders

An additional format for the use of the graphical service “Line” is the use of the resource to form channels for market movements in the price of the underlying asset. In this variant of the strategy, based on the graphic service, the trader is able to receive signals in both directions of the market:

Graphical analysis tool "Line"

It is worth noting the effectiveness of this format of systems – on average, the investor can get the result in the form of 85% of the resulting options.

Rectangle

This analysis tool is used mainly for strategies based on the definition of zones, for example, consolidation of the market or the zone of price restrictions of trading sessions. For example, take the classic strategy in the consolidation zones. “Rectangle” as the main tool for building a strategy has a very convenient format of work and allows you to clearly delineate specific market periods of market fluctuations with a narrow range:Rectangle

Using the signal in the form of breakdown of the boundaries of the consolidation zone, outlined with the help of the graphic tool “Rectangle”, you can easily get more than 87% of profitable options.
Now let’s look at several techniques for using semi-automated analysis services, in particular Fibonacci and Fork levels.

Graphical services for analysis – Fibonacci levels

This mathematical method of determining the level of the spread of quotations has long been well known to professional traders. However, in the binary market this tool is not used very often. The classical system at Fibonacci levels has the simplest format of signal generation:

• Build a grid of level markings on the trading chart. To do this, you need to perform a simple manipulation – using a semi-automatic service you need to connect the current market extremes in the estimated period of the schedule:

Graphical services for analysis - Fibonacci levels

• Use as the signals the moments of a price turn at achievement of significant levels:

The Fork tool

This mode of generating forecasts has an efficiency level of more than 85%, which opens a lot of opportunities for the trader in the issue of constructing professional trading strategies and obtaining stable trading results.

The Fork tool

This tool of semi-automatic type is proposed for the formation of regression channels on the chart, in which not only the extreme values ​​of the price indicators that are formed during the construction of the chart are outlined, but also the average values ​​of the asset value to which the quotes during the trend movement constantly tend to approach. As a result, the set of indicators and patterns of movement of the price of the asset, determined with the help of the “Fork”, can bring up to 90% of profitable options. As trading signals, methods of trading at trend levels are used here – a rebound from the level, breakdown of the level:

Indicators for binary trade

We cited several classic examples of the use of graphic services, which have the highest possible efficiency. But this list is not exhaustive, since such an instrumental set of technical analysis tools allows investors to independently develop their own authorial trading strategies with the simplest mode of signal identification and high level of efficiency. Now we turn to the indicator analysis tools.

Indicators for binary trade

The number of indicators available in the network today totals hundreds of titles, which significantly expands the potential for technical analysis of market quotations. We offer you a few simple but maximally effective resources that all traders of binary options need to have at their disposal.

Indicator RSI (Relative Strength Index)

The classic algorithm for assessing trading charts of the financial market RSI or indicator of relative strength of the trend is an effective tool for generating forecasts that can be used in trading with options with high efficiency.

The principle of operation of the technical algorithm RSI is based on calculating the relative strength of the trend movement of the market relative to the previous period. In the standard version, the indicator is a tool located in an additional window below the quotation schedule, which consists of a trend line and levels of the technical scale 30 and 70, which outline the areas of oversold and overbought market:

Indicator RSI (Relative Strength Index)

 

A wide range of indicators that the technical algorithm generates RSI allows traders to form high-precision signals for trading based on a wide range of estimates. Let’s consider the basic set of receptions of use of a technical facility:

• Trading on trend reversals

This method of using RSI in binary trading is built on signals in the form of an indicator withdrawal from the oversold and overbought zones. The fact is that the algorithm developer Veles Wilder, setting the levels of market extremes in his new indicator, proceeded from a simple logical conclusion – the market, in any movement, will sooner or later reverse. Therefore, zones 30 and 70 of the RSI indicator are designed here to determine the most likely points of the turn of quotes. Signals in this mode of using the indicator are precisely the moments of the trend line exit from the specified zones:

Trading on trend reversals

 

Variants of application of signals in the form of reversals of the movings directly in the extremum zones can give a negative result, since the indicator can fluctuate for a long time in the indicated zones.

• The second and rather widespread acceptance of the use of RSI is based on the specific construction of its technical line relative to the asset quotes, the so-called divergence – or the divergence of indicator indicators and asset quotes. This format of signals occurs when the quotes of the asset build up the growing highs, and the market evaluation algorithm, on the contrary, forms the downward minima:

Types of trading using trend strategies for options

 

Such indicators of the forecasting means indicate an early reversal of quotations for the formation of a new trend. We showed you the signal generation mode when the trend is reversed down, the uptrend is identified by the reverse mode of divergence construction.

• The third and sufficiently effective mode of applying the indicator RSI is based on the definition of the flat-scale spreads of quotations that occur at the moments of market consolidation or at night time of the exchange sites. To predict the market in this mode, you need to slightly change the settings of the instrument and, in particular, instead of the two extremes, set on the scale a single central level 50 that will identify the moments of the turn of quotes:Binary options RSI

 

As you can see, the signals in the form of the crossing of the technical level indicator by the moving movement at the market’s flute movements make it possible to get the points for registration of profitable binary options.

• The fourth option for work on the indicator RSI is the interpretation of the classic trading tranche. In this case, the resistance and support we build not on the chart of quotations, but on the indicators of the indicator, which also has the ability to form its own line of various in duration trend movements:RSI indicator for trading binary options

 

In this case, classical signals are used – a bounce from the level of a trend or its breakdown. This signal format is effective with stable and long-term market trends.
RSI is considered a classic service and is often used as an integral part of multi-indicator systems. The accuracy and high degree of correctness of the indicators generated by this resource makes it possible to work effectively on the binary market.

Oscillator MACD

The most accurate indicator for binary options, which professional traders use as a tool for constructing complex strategies, and as a separate means of market valuation is of course the MACD service.

Indicator for determining the strength and direction of the trend MACD has several building formats at once – the oscillator, whose task is to accurately determine the direction of the trend movement of the market and a histogram that determines the strength of the movement of quotations on the trend. Such a wide range of market indicators being evaluated significantly expands the trader’s technical capabilities in the analysis and increases the direct effectiveness of the indicator.

So, in order to evaluate the market using the MACD indicator, it needs to be set on a quotation chart. To do this, using the Binomo platform set, apply the standard MACD indicator to the trading quotes, having pre-selected a timeframe convenient for trading and the underlying asset. As a result, in an additional window under the schedule you will receive such a technical tool for estimating quotations and generating forecasts:Methods of applying RSI in technical analysis of options trading

 

As a combined signal of the indicator it is recommended to use such parameters of construction of the technical means: intersection with a certain directivity of the oscillator lines and growth or drop of the histogram relative to the zero level of the indicator scale. In practice, it has this signal format:
To bet UP:

• The histogram has risen above the zero level
• Oscillatory lines crossed upwards

classic tricks of trading on trend levels

 

For DOWN rates:

• The histogram has fallen below the zero scale level
• Oscillator crossed down

classical signals for options trading

With such a simple signal format, the MACD indicator generates a high-precision forecast with a 90% probability of a positive outflow. As a result, the participant of binary trading gets a real statistical advantage over the market and the possibility of stable earnings.

Indicator MA

And, of course, it is impossible to ignore the classical service, which is a building material for the development of other indicator tools and an independent highly effective strategy. This is the indicator “Moving Average”.
This standard trend indicator operates on the basis of calculating the average statistical market values ​​of the underlying asset price for the period set during the settings. Thus, on the trading chart, a dynamic moving line is generated, displaying information about the current market trend. This algorithm calculates the indicators and uses another regularity of the market – quotes, despite the sharp and chaotic movements, constantly tends to balance. Yes, there must be a certain order in the chaos! For this reason, the asset price always tends to its average values, which can be very effectively used as a signal for trading.

In the standard application, the MA indicator has this kind on the chart of quotes:Oscillator MACD

 

In this mode of the indicator, traders use two formats of trading signals:
The first is the direct direction of the dynamic moving indicator, which gives clear information about the trend movement. Such a signal allows us to open contracts in the direction of the main market trend

Indicator for determining the strength and direction of the trend MACD

 

The second one is a market situation in which the price crosses the indicator level in a certain direction. Such a signal indicates the reversal of quotations to the construction of a new trend, which is the most effective moment for issuing an option rate:

technical tool for estimating quotations and forecasting

 

Such methods of using the indicator allow you to receive up to 90% of profitable contracts, which unambiguously leads to maximum trading results.
The set of analysis tools that we proposed above is a collection of classic resources for trading. These services and tools are enough to create profitable and universal strategies, which allows you to maximize the effectiveness of trading and is a means of achieving high trading indicators by the investor.

 

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“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”

Necessary analysis toolkit for each trader
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