Friday, March 14th, 2014 by Michael Freeman
Trading online with binary options can be one of the most life altering life decisions that any one person can make. Whether you will use binary options to help aid you in a positive or negative is determined by three factors. Those three factors would be dedication, experience, and luck. Staying dedicated and hungry to keep expanding your knowledge about the binary options trading field is a must along with constantly gaining experience. The purpose of today’s article is to provide novice and experienced online traders with the knowledge needed to cover the basics and how to properly implement the ultimate oscillator indicator. Moving forward we will cover the basics of the ultimate oscillator indicator.
Developed by Larry Williams back in 1976 the main function of this indicator is to identify possible buy and sell entries based on divergences that occur within the indicator box. Being able to properly spot an entry for a call or put order is of utmost importance in the binary options industry. The calculation involved in the indicator set up is rather complex which we won’t discuss however it is great when trying to identify those call and put spots.
Setting up the indicator is rather simple and only requires the use of two steps before we consider implementing our trading strategy. The first thing we need to make sure of is that our targeted asset that we are watching has relatively low volatility, meaning that the probability that the asset will change directions in a short amount of time is unlikely making it more predictable when trading. However, assets that have high volatility can be difficult to predict so we stay away from high volatility assets. Common assets that have low volatility that we can consider trading with would be the EUR/USD, Silver and the Google stock option. The last thing we want to make sure is that the time frame that we watch our assets is set no less than 15 minutes and no longer than 30 minutes. Any times outside this range could effect the accuracy of the signals generated by the indicator.
Now that we have the proper set up established implementing this indicator into a reliable binary options strategy is relatively simple. When it comes to the signaling process we either want a break where our white line will cross the boundary box or we want a strong trend in an upward or downward direction. In the picture below you can see three examples of signals that I would have taken and placed a trade with. In the first two we have two strong bearish trends present in the asset price level along with the Ultimate Oscillator signal line signaling to us to place a put trade. However, in the last trading signal we have a break in our barrier box followed by up strong upward trend in the assets price level and Ultimate Oscillator line signaling to us to place a call trade.
Trading online with binary options is no easy walk in the park but if you stayed dedicated and continue to gain experience and get some luck at times then the likelihood of succeeding in the industry has greatly increased. Using the Ultimate Oscillator in this binary options strategy is effective but using it in combination with other indicators and trading patterns will more than likely increase the accuracy of the signals generated. If you have any questions or comments please feel free to leave them below. As always stay tuned for more articles to come and have a great day!