Sometimes it is very difficult to predict the direction of the cost indices to trade binary options. To make an accurate prediction can be made fundamental analysis to analyze graphs (build trend lines, support and resistance levels), or spend at least an elementary technical analysis. Agree, sounds is not easy, and if I was a novice trader, I have hair stand on end. That's why I advise you to use the forecasts from a professional market research firm to trade indices. These signals are finding and novice binary optionsAnd for experienced traders who want to make sure of their own forecasts.
The farewell to the study of this section, I will say that I have not spent so much time on the development of options trading. However, it would take even more time if I did not understand that trading, like any other professional activity, requires a comprehensive approach, regardless of whether the ready signals used in commerce, either all executed independently. In this regard, it is worth noting that a reasonable combination of theoretical and practical parts are more likely to lead you to success than the same individually.
Below is the professional development in the form of a summary table, which is ten times easier path to the trader to carefully study the following instructions for its use.
You can follow the appearance of profitable signals right here in Online mode. After all, for you, I integrated the table with technical analysis to your site, and it works in real time.
As you can see, here it is the right 8 indicator with standard settings:
• trend (ADX, Alligator, SAR, AROON);
• oscillators (MACD, CCI, RSI, Stochastic).
The values of each indicator can be easily checked. To do this, click on the value "Buy" or "Sell" at the desired timeframe. This will open the schedule in real time with the already cash indicator.
Below is presented the choice of instrument, in this case, the index (composite indicator calculated on the basis of the prices of a group of assets, mostly stocks or currencies). Since the formal designation in some cases is different, it is necessary to understand that which corresponds to. Calculation of indicators is conducted on CFD contracts:
• USA30.IDX - US index Dow Jones;
• USATECH.IDX - US index Nasdaq 100;
• USA500.IDX - American S & P500 index;
• HKG.IDX - Hong Kong index Hang Seng;
• JPN.IDX - Japanese index Nikkei 225;
• AUS.IDX - Australian S&P ASX 200;
• FRA.IDX - French index CAC 40 (FCHI);
• DEU.IDX - German index DAX;
• EUS.IDX - European index Euro Stoxx 50;
• GBR.IDX - English Index FTSE 100;
• ESP.IDX - Spanish index IBEX 35;
• CHE.IDX - Swiss SMI index.
As you know, the market can move in two ways: in a trend in consolidation. Accordingly, we need to find the right group for us indicators of the current situation on the tool, which we are planning to trade. As a result, the algorithm would consist of several steps (stages). As an example, consider a CFD contract for the European index Euro Stoxx 50.
Шаг первый. We analyze the likelihood of a strong movement. To do this, first of all necessary to evaluate the news on a particular pattern index. Economic calendar shows that in recent time - December 8 2016 years, published data on the interest rate of the European Central Bank, after which followed the speech of the ECB - Mario Draghi.
Naturally, in this day most likely market trend that we see on the index chart. This is because the major investors are oriented primarily on fundamentals, it is important to purchase a valuable asset for the long term. As a result, when the tool is beginning to keep buying, it formed a trend until all the players will not buy as much as they need.
In addition to news, recommend and evaluate key levels (highs and lows) on the daily time frame, as shown in the example below. They are similar to the news attracted the attention of major players.
In the opposite situation, when the market is not important news and peaceful environment, we expect consolidation (flat). Note that this step is extremely important because it determines the basis of what will have to work in a given day.
Шаг второй. Go to the indicators. We estimate their values from 8 December, when the market was planned strong movements. We need a group of trend indicators, take three: ADX, SAR and Alligator. The graph marked area when the indicators together show the values - "Buy."
Good opportunity to purchase One Touch / No Touch options on the movement of prices up, which closed after the time of expiration and the premium paid.
Since we are trading intraday, the basic timeframe was chosen M5. In addition, I do not recommend you to use multiple slots at the same time as their signals may be completely different and misleading. If you want to earn more, you could go and M1 shopping turbo option, there are also movements were strong and the signal from the 5 minutes it.
The next day - 9 of December, strong movement has passed, the market was flat. We estimate that the oscillators shown in this period. The graph in the box marked zone, when all oscillators (MACD, RSI, CCI, Stochastic) showed the "Buy" or "Sell".
As you can see, the situation is allowed to earn a decent using the same Touch-options. In addition, it was possible to apply the In / Out options, where the forecast is that the price is not out of the corridor.
On consolidation, to enter into a deal better not to take into account the MACD indicators since he was a little late, unlike other oscillators. The best option to use it - wait until all the other 3 oscillator will give a signal, and then wait for input on the MACD. Such an approach would provide a more reliable point for the opening of the transaction.
To summarize the theoretical part:
• Be sure to understand how the market will move, for what is assessed and news background and key levels for a particular index;
• in a particular market situation or trend indicators are used, or oscillators;
• for intraday transactions is recommended to use only one timeframe.
Technical indicators for binary options
Below is another easier way to use a technical resume for trading indices. You can follow the emergence of profitable signals online right here. After all, especially for you, I integrated a table with technical analysis on my website, and it works in real time. Times are indicated in the tables in GMT.
Now let's see in the index trading strategies, how to analyze these indicators. If you see that there is an inscription in front of a particular index "STRONG BUY" at all time intervals (5 minutes 15 minutes, hourly, daily), it means that the forecast of the change in asset value stable. In the near future this trend will continue, and the price index will continue to grow. Therefore it is necessary to buy an option to increase over the next 15-30 minutes.
If you see that in front of a particular index has an inscription "Actively sell" at all time intervals (5 minutes 15 minutes, hourly, daily), it means that the forecast of the change in asset value as strong as possible. In the near future this trend will continue, and the price index will continue to fall. Therefore it is necessary to buy an option to decrease over the next 15-30 minutes.
If the table in front of the index for various time intervals are different signals to the action, the option in any case, do not open. The signal is weak and contradictory.
I advise you to read also with Binary options trading strategies for trading signals. There you will find guidance on the use of signals when trading currency pairs, commodities and stocks.
And for those who do not fully possess information that is stock market indexesI'll explain further.
The index is composed of several companies at once, and its cost is calculated as the average price for the whole group.
For example, the the best known indices:
- S & P500 - The index of the US, which includes 500 different companies;
- NASDAQ - A biotech index, which brings together companies in the field of biotechnology;
- DowJones - An industry index US, including 30 companies;
- FTSE100 - The index of the UK;
- DAX30 - The index of Germany;
- CAC40 - Index of France and so on.
Indexes, as you can see, basically tied to a particular region. Each of them can characterize the state of the economy of a country as a whole.
If a company's share price to fall, part of the index, it will start to decrease and the index itself. And vice versa. Knowing these features, you can make good money by trading binary options on indices and forex.