Saturday, April 5th, 2014 by Michael Freeman
Trading stocks with binary options can be difficult unless you know what indicators and proper trading instruments to use in order to increase your probability of success. I feel that many people lack knowledge on the fundamentals of stocks causing them to use less reliable trading strategies along with indicators that don’t work well in combination with stocks. The main type of indicators that should be applied when trading stocks with binary options would be oscillators, volume and moving averages.
Oscillators are a rather unique indicator that can be further classified into three categories, however, for today we will discuss the main oscillator indicators that we would want to use in a trading strategy. The main oscillator indicators we would want to use would be the Detrended Price Oscillator, Derivative Oscillator, Klinger Volume Oscillator and the Percent Volume Oscillator. Oscillators are a great instrument used in technical analysis trading strategies because they help traders determine whether or not the asset they are watching are currently exhibiting signs of being oversold or overbought. The best time to implement an oscillator indicator into a trading strategy would be if there is a neutral trend present in the asset we are watching.
Volume oriented indicators are one of the most helpful indicators used when watching and trading stocks online with binary options. Since all stocks are composed of shareholders, it causes each shareholder to own a small percent of the business while the total percent of the shares are known as the volume. Some of the more popular volume indicators used to trade stocks would be the Positive Volume, Volume, Volume Rate of Change and the Volume Rate of Change Percent indicator. Volume indicators serve a main function of showing traders the technical health of a targeted stock.
Moving averages are a great instrument and extremely helpful when trading binary options. There are so many ways to incorporate moving averages into a trading strategy and it really is the best indicator to use when trading stocks. When we are analyzing these stocks we want to make sure we are using an exponential moving average and/or a simple moving average. Not only are moving averages great to use on their own but they are most effective when used in combination with other types of indicators, such as oscillator indicators. Moving averages can be set at different time periods that show the history of the stocks average price over the set period of time making it easier for traders to predict future support or resistance levels. So if you set your moving average indicator to a period of 10 it will show us in the form of a line that average price of that stock over the last 10 days.
Trading stocks with binary options can be much easier when using the right type of indicators. Volume, oscillator, and moving average indicators are great indicators for stock options. If you have any comments or questions please feel free to leave them below and thanks for your time.