Opzioni binarie trend indicator
The chart below demonstrates the indicator in a form of consecutive dots that are drawn below or above the price:. When the dots are above the price, this indicates a downward trend, and when they are below — an upward trend. Like the majority of technical indicators, Parabolic SAR is calculated based on quotes history. It follows price changes and if dynamic is shrinking, dots are drawn closer. Accordingly, the further the dots are from the price, the stronger is the trend.
When a price touches a dot, then subsequent dots are drawn on the other side signaling trend reversal:. This is a very simple, yet not very popular method.
In order to trade at reversals, the contract should be opened every time when dots start to appear on the other side, as is shown on the screenshot below:. Worth noting that many traders criticize this method claiming that it gives too many false signals which bring more loss-making options than profitable ones.
The statement is quite fair as the price is highly volatile on the screenshot above. As is shown, there are a lot of false signals and earning something without supportive tools is fairly difficult in such conditions. The second method is more precise, but requires the use of ADX indicator to filter the signals. The use of ADX indicator is recommended by the Parabolic developer himself.
If the line rose to the value above 25, it indicates that trend is strengthening. And finally, when the value is above 30 and Parabolic SAR gives a signal, then corresponding option should be bought.
There were three false signals from Parabolic, but since ADX line was below the value of 25, all of them were ignored. The main parameter is the Lag, which is set to 0. The RSI inventor recommends to distinguish the levels 70 and When the line is above the level 70, then it means that the asset is overbought, which in turn will result in reversal or delay of the upward trend.
If the level value is below 30, then one should expect reversal of the downward trend or its transition to flat. Using Relative Strength Index in binary options trading, one can get quite many different signals. The most popular approach to using RSI is trading on corrections and reversals, that is, when the line is located in the overbuying or overselling zone. Using this approach, one should close a deal only when line crosses bask one of the level and gets fixed by closure of one candle as follows:.
Using the line pullbacks up to the certain levels is also quite a common phenomenon. It also works at conventional horizontal support and resistance levels:.
Both these methods work well at the flat time. However, when there is some trend movement in the market, then indicator might give a great deal of the false signals. Exit from the overbuying or overselling zone quite frequently shows only deceleration instead of beginning correction or reversal. In order to distinguish when RSI signifies deceleration or beginning of more important pullback, two states of overbuying and overselling were introduced as follows:.
Moderate state implies the presence of a line beyond the levels in period of less than five bars. When the moderate state takes place, reversals and corrections happen much more often. When the extremal state is present, trend often slows down:. Buying options in presence of moderate overbuying or overselling states only, one can catch stronger movements and earn much more money as a result.
RSI oscillator can also be used to spot divergence:. The signal is considered good when the divergence has formed along with exit from overbuying or overselling zone. Technical RSI indicator is an excellent and sometimes indispensable tool in binary options trading.