Sunday, June 15th, 2014 by Tim Lanoue
Welcome back guys, today we are going to go over some of the more popular and most reliable trading indicators that should be used when trading short-term trading strategies with binary options. The indicators that I will discuss further below can be used with a trading strategy that have an expiry time consisting of 60 seconds to 5 minutes. This article is meant for traders who do have some knowledge with the market indicators and trading and are curious to learn more about these trading indicators.
When trading binary options with moving averages it is important to make sure that the moving average type that we have set is a simple moving average. Front-weight and exponential are the other two types of moving average indicators and they should only be applied to binary options trading strategies that consist of a higher time frame and longer expiry time. The periods for these simple moving averages should be set on a time period consisting of 3 all the way up to 15, just be creative and do some tinkering with it and I am sure you will find a setting that would work great.
Oscillators are a rather unique trading indicator and can be used with a variety of trading strategies that not only involve the short-term trading strategies but also long-term trading strategies. There are two types of oscillating indicators, the first would be one that oscillates around a center-line while the other would one that oscillates from bottom to top. When it comes to trading binary options though and especially with a shorter time frame we want to choose an oscillator that oscillates around a center-line because signals generated are easier to see and oftentimes are more effective. A few oscillators that I would recommend for one to try would be the Aroon Oscillator, Derivative Oscillator and the SMI Ergodic Oscillator.
Perhaps one the least utilized but one of the most unique indicators would be the Vortex indicator. The Vortex indicator is a technical indicator that has the primary function of determining a new start to a trend or spotting a continuation in a targeted assets trend. This is extremely helpful when trading short-term binary options, because being able to detect and determine if a trend is continuing or not is key to ones success when trading binary options.
There are many trading strategies available for everyone who wants to learn more about binary options, at one time or another I am more than sure I have composed a number of trading strategies that required the use of these indicators so if you would like to see how you could apply them into a trading strategy then please make sure to browse the blog portion because there is a lot to learn and you never know, you may find that one strategy that is perfect for you. If you have any questions or comments please feel free to leave them below. Good luck and happy trading guys!