› The best technical Indicator for Binary Options

The best technical Indicator for Binary Options

8.08.2018, 14:19

It has always been a huge question about what is the best technical indicator for binary options since most of the traders are searching for the most accurate and profitable one. That’s why this article is dedicated to such an uncertain topic as the technical indicators for binary options. So if you are looking for the best technical indicator, we have got bad news for you. You will not find it. Why? Because we have been already talking about the fact that binary options’ Holy Grail simply does not exist as well as unicorns do not exist. This rule is the same for the technical indicators. There are no miracles among them.

Why don't exist the best indicators for Binary Options?


Before answering this question, let’s try to figure out the types of indicators and their features. In fact, any indicator is a usual mathematic formula. What is the basis for indicators to form the signals? They rely just on the history and previous price action. Now we got a question for ‘experts’. In case if a price has been moving in one direction, conditionally speaking, does that mean that the price will move in the same direction tomorrow with a 100% probability?

Not at all. The market is driven by a chaos, not by rules, and the action is always unpredictable. It is impossible to find a binary options indicator which will predict the future for you. This market does not work that way:

You cannot simply work on the same indicator (even if it is awesome) without additional instruments, filters etc. Such a behaviour on the financial markets means whether a hopeless silliness (sorry for that) or a suicide;
DO you remember that the market is always changing? And you cannot go far away on any technical indicator for binary options, even it is the best one. Because if you did not adjust your trading system to the market conditions, if you did not change it from time to time, your trading would be doomed to fail, Alas!

Which Indicator is Better for Binary Options?


This is another question that we do not have an answer - which indicator is the best. It should be the best for what? Does it have to be the best to identify a trend, to determine overbought and oversold levels, to find reversal points or simply to make a nice MT4 screenshot? You need to understand that every single indicator serve for its’ purpose, you cannot just advice whatever if you do not know what are you looking for. Especially if you do not know what do you need.

The best technical Indicator for Binary Options

Unfortunately, we do not make divinations using tarot cards. That’s why we cannot choose exactly the best binary options technical indicator for you. We have made a separate article for people who know what they want. This publication is about eight main groups of indicators, you would not be confused.

To be fair, we need to notice that there are some traders who are worried by another question which is more logical in itself: which indicators are better to use. This is exactly the question that we can answer. Despite the fact, that everything is individual, of course, but as a general recommendation, we would advise to use the basic indicators. Yes, exactly the same boring indicators which are included in a live chart in MT4 and MT5. Of course, they are not so interactive, you do not need to search for them, download and install them and so on. But based on our experience, we can say that the basic indicators are the best assistants. Which indicators do we mean?

The usual ones:

  1. Bollinger Bands;
  2. Moving Average;
  3. MACD;
  4. Stochastic oscillator;
  5. Relative Strength Index.

Conclusion


To be honest, we have always been surprised by ‘the Holy Grail’ people who are searching for miracles and the best indicators for binary options. We have more than 8 years experience in this field and we use a complex analysis which includes technical, fundamental and graphical parts of it. But suddenly John Johnson comes in and he is interested to make money on binary options. He asked us how do we trade, and we tell him which instruments do we use for trading. John wants to make a lot of money as fast as possible. So he keeps asking about which indicator is the best after leaving apart all the considerations. John thought that we would tell him about MBFX, for example. He will add it to the chart somehow and that’s it. John’s role as a trader will end up at the same moment. All he needs after that is just to calculate his profits. Don’t you people understand, how silly that sounds? It’s just an absurd.

Do you really think that people who make money on binary options are such idiots, that they use some complicated indicators instead of having the real best one? While at the same time they could just add a couple of indicators the chart quickly and that’s it. The trading is somewhat more complicated than a simple pair of MT4 indicators (even very efficient ones). It is better to understand this cruel reality as fast as it is possible and to come back to the real world, taking off the pink sunglasses.


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