Binary option indicators are really no different to the indicators that are being used on trading floors and brokerage firms around the globe. These trading indicators are not a new gimmick it is just that in the past they have only been used by professional traders in brokerage firms but with the close correlation between traditional financial trading and binary option trading the principle of indicators works in exactly the same manner. There are numerous types of indicators and they work on different fundamentals such as moving averages and volumes, whilst others look at specific patterns that show in charts. However to see patterns with charts or see the moving average for an asset, there is a need for a decent charting package and that is what most if not all binary option platforms just don’t provide. See our article on binary option charts
Common Binary Options Indicators include
- Bollinger Bands – bands that are placed above and below a moving average
- Chart Patterns – Double Bottoms, Double Top, Head and Shoulders patterns
- Moving Averages – Can tell a trader when a short term change in price direction is imminent
- Volume – Shows how much and how often a stock or asset is being traded which can be linked to price movements
Most serious traders will utilise a secondary charting programme that they use in conjunction with their binary option brokers platform. There are a number of charting options available and the three we mentioned in our article above are all top quality and are used by many professional traders. If you haven’t looked at a decent chart before pick anyone of the three we mention Here and compare against the charts that the platform that you use provides and you will immediately see the difference.