MACD trading signals are simple to interpret and goes a follows:. The signal line red that crosses the histogram indicates that the push is over. It is used for forex but not for binary options. RSI is an oscillating indicator used to determine the trend strength as well as possible reversal points.

According to the indicator, once the asset reaches one of the areas, the price might reverse and go the opposite direction. RSI combined with a Simple Moving Average and MACD form a popular trading strategy. And as a rule, the momentum changes direction before price.

So this indicator may help traders to find trend reversal points. It consists of two MAs fast and slow and two horizontal lines overbought and oversold levels. A signal to Buy, for example, is received when the blue line is crossing the red line upwards and when the lines meet below the oversold level and are coming back up.

An example of a Sell signal is when the blue line crosses the red moving average downwards; also when the lines meet in the overbought area over 80 and are coming back down. MACD Stochastic Strategy. The indicator consists of a moving average and two bands, above and below the MA.

When these bands are far apart, it indicates high volatility. ADX displays the strength of the trend. It is a leading indicator that is normally used with the standard settings.

ADX does not provide Buy or Sell signals. It can be successfully combined with Bollinger Bands. The greater the value of the seagreen line, the stronger the trend. The green line above the yellow line indicates an up trend, the green line below the yellow line indicates a down trend.

The main idea of the Fractal is to show the minimum and maximum of the price curve and indicate the trend reversal points on the chart. The Fractal indicator signals a downtrend when the highest candlestick in the middle is followed by two lower candlesticks, the Fractal is facing upwards as shown in the example above.

An uptrend is emerging when a lowest candlestick is followed by two higher candlesticks, with the Fractal facing downwards. It is considered a simplified version of the MACD indicator. For example a Buying signal is received when the bars move from below to above the baseline, while a Selling signal can be observed when the bars switch from above to below the baseline. A basic use of the Money Flow Index is to indicate when the market is overbought or oversold. Values lower than 20 usually suggest an oversold market.

Conversely, levels higher than 80 suggest an overbought market. These levels are marked on the chart as a grey dotted line. An MFI indicator strategy is to apply a moving average MA to the indicator and to use crossovers of the main value across the MA as trading signals. Our assessment is verified by the actual direction of the market. As I mentioned, binary options require a slightly different approach to trading. We will use the same averages, SMA 8 and SMA First of all, they will be used to determine the existing trend.

If the average is more than slow, then we are dealing with an uptrend. If the fast average is below the slow average we say that the market is in a downtrend. The trend is one thing and the moment the position is opened is another. Our binary options strategy is about being clever. If the trend is downward, we will try to open the option for price falls. The place where we will trade is to be clearly expensive in the market.

If we have an uptrend, we want to open an option for the price increase, but in a place where it is extremely cheap. But what does this mean in practical terms? Practical examples best show the idea of this binary options strategy. If there is a downward trend we wait for the price to exceed the fast average SMA8 upwards. If this happens, we wait for the price to clearly break through the SMA8. Some traders will read it as a buy signal, but in such situations, the price usually returns.

This is our signal to open a 1-minute option for a price drop. In the chart below I present one of the transactions. The red rectangle indicates where it is relatively expensive, which is good for opening positions for price drops. If we have an uptrend we wait until the price breaks downwards successively SMA8 and then SMA Afterwards, we quickly open the option for the price increase.

Look at the chart below. Remember that this binary options strategy, like any other, does not work every time. In addition, it requires some practice.

It is good to practice it on your demo account. Using this method, prepare several charts for different currency pairs and try to monitor the situation in several markets simultaneously. com is not responsible for the content of external internet sites that link to this site or which are linked from it. This material is not intended for viewers from EEA countries European Union.

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According to the indicator, once the asset reaches one of the areas, the price might reverse and go the opposite direction. In the chart below I present one of the transactions. Free Download. MFI Money Flow Index MT4 A basic use of the Money Flow Index is to indicate when the market is overbought or oversold. It generalizes the records of a particular investment. Best Binary Indicator system can give you trading signals you can take as they are or add your additional chart analysis to filter the signals further, which is recommended.

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