Best indicators for binary options trading in South Africa

Best indicators for binary options 

Trading is one of the most common ways to increase personal capital. A market that allows binary options trading was officially adopted by the Chicago Stock Exchange in 2008.  A trader often trades based on technical analysis of the market, using the best indicators for options. With their help, a trader determines where share prices may go and at what moment a deal should be made. However, fundamental factors are not alien to it either. It takes into account the economy, corporate news and many other factors.

Technical analysis is a method of graphical forecasting of price changes, i.e. an analysis and forecast of the price of an asset is made on the basis of a graph of past prices.

Popular indicators for chart analysis
Popular indicators for chart analysis

Technical evaluation is an important aspect of commerce. It analyses market data from the past to predict future market prices. This type of analysis can be challenging for the novice trader, as it takes years to become an experienced dealer, but if you are willing to put in the effort, it can be very profitable. You can always learn by using the demo account on our trading platform. It will allow you to learn how to read and apply various charts and detectors, without any risk. Let's see the best binary options indicators:

1. Moving Average. This is probably one of the best indicators for binary options, and it allows you to trace two moving lines with different periods. The crossing of these lines will be a signal to make a trade. And the direction of the crossing also matters: if from the bottom to the top, this is a signal to buy Call options, if vice versa - this is a signal to buy Put options.

2. A popular technical analysis detector is the MACD. The MACD shows how the average price converges or diverges over a certain period of time. Divergence analysis shows how cost movements tend to repeat. This is very important for commerce options, because if the trend continues over a longer period of time, it becomes increasingly likely that you will make money by buying at the beginning and selling at the end of that interval.

3. Bollinger Bands resemble moving averages. But the difference is that the Bollinger Bands are drawn at distances equal to the number of standard deviations. As the value of standard deviations depends on volatility, Bollinger Bands adjust their size: when volatility is low the bands decrease, when volatility is high they increase. Thus, most of the time the price is inside the bands. Moreover, the bigger the standard deviation, the more probable is the price not to leave the borders of Bollinger Bands.

4. Many believe that the Stochastic is the best indicator for binary options, it is an oscillator (leading indicator). It is a rate or momentum detector. The stochastic assesses the speed of the market, by determining the relative position of the closing prices between the highs and lows of a certain number of candles. Simply put, the stochastic is capable of identifying pivot points and trend continuation points.

5. RSI is one of the most widely used indicators for trading options.  The indicator itself is a curved line, placed on a scale between 0 and 100. Most of the time, the RSI indicator is in a "calm" state - the line of the indicator is between the 30 and 70 levels. But during strong trends, the line breaks through these levels. These are the times we are interested in. A trend cannot last forever, there will still be pullbacks, corrections and price reversals. RSI will show us the most probable points where the trend is likely to exhaust itself, and a reversal or pullback will occur.

Choose your binary options strategy
Choose your binary options strategy

Technical analysis also means working with the price chart, but there are many different types of charts: line, bar and candlestick charts, etc. You can also learn how to use them on our platform:

  • A line chart is a price chart. It is plotted on points - each point represents a price level where the price stopped at the last second of the current time frame;
  • Bar chart - a chart that consists of vertical lines showing opening and closing price, as well as minimum and maximum;
  • Candlestick chart is a chart made up of Japanese candlesticks. The candlesticks themselves carry all the same information as the bars. But it is on the Japanese candlesticks that most commerce strategies and trading systems are built (which, by the way, may as well be used on the bars). Japanese candlesticks are much easier and faster to provide a trader with all the necessary information, unlike other types of charts.

There are many detectors for technical analysis - dozens of thousands, and new ones appear all the time. It is a very difficult task to keep track of them all and to have enough time to study them thoroughly, so you should focus your attention on the major indicators.

Binary options trading strategy 

A binary options trading strategy involves a set of rules that you follow in order to profit from your bets. If you think an options commerce strategy is complicated, wait until you start using it. You can learn a lot, but when you know how it works, you can start to dominate the market and make substantial profits. It is worth it to be persistent and learn everything in depth.

So what are binary options, and what are they?

A binary option is an electronic contract on a particular asset, which has a known expiration time beforehand. Also, the amount of potential income by purchasing an option is also known in advance as a percentage of the transaction amount. As a rule, it is from 60% to 95%.

The trader has to correctly predict the direction of market price movement of the asset by the time of executing the option. By the time of expiry, the rate of the instrument can either go up or down. The third option, when the price remains at the same level, does not bring anything and does not take anything away from the trader, as money spent on buying the electronic contract is simply returned to the trader in full.

Binary options are slowly increasing and types to suit the needs of demanding traders. First came the options that are now called classic or standard options, and then other variants joined them.

For beginning traders, classic binary options or short term contracts are more suitable. Also, it is recommended to use one of the proven strategies to learn how to trade options successfully.

Binary options - the choice is yours
Binary options - the choice is yours

The key to a binary options strategy is to follow the trend movement over a short time frame. The strategy uses a chart with a selected time frame (where each candle is for example 20 minutes of time). The recommended expiry time for this strategy is 40-60 minutes after receiving signals from the indicators.

There are many types of options trading strategies that you can use. Some of them are historical statistics, indicator based trading strategy, range commerce plan and trend based trading strategy. Of course, none of these strategies will make you rich overnight. But if you can predict the buying price direction, then you just might be able to increase your profits in the long run.

Binary options strategies by complexity:

There are 2 types of strategies - simple and complex. The difference between them is only in the analysis tools themselves. Simple strategies use one or a maximum of 2 detectors with very clear signals, such as arrow indicators. Complex strategies include those where you need to open indicators on different timeframes, connect more than 2 indicators and use more complex tools like Alligator or Ichimoku.

Binary options strategies by duration:

  • long term (trades last one day or more);
  • short term (binary options strategies for 60 seconds, 5 or 15 minutes, an hour).

Statistically, more than 80% of traders prefer strategies for 10-15 minutes. They are more predictable than 60 second strategies and more profitable than hour or day strategies.

When looking for a binary options trading strategy, it is best to choose one that is easy to use. Such a strategy is the foundation for many beginning traders and is the first thing they learn. Once they have mastered the basics, they can move on to more advanced trading strategies. It is very important to remember that even if you lose in your basic trades, if you always have a perfect approach, you can always make money in the market.

Indicators of binary options on the online platform

There are different ways to find out how to start using binary options trading in  South Africa. Some of these ways are more convenient than others. One of the very first steps for you may be a demo account. By opening a binary options trading demo account, you can practice trading without risking your own money. You can use the demo account to learn more about the different approaches and strategies available through our software and maybe choose the best binary options indicator for you.

Registering on the investing platform
Registering on the investing platform

As we have seen, there are a lot of trading signals, charts and strategies based on them and of course it will not be easy for you to figure it all out at first, in which case using the virtual capital, can give you the confidence and the determination. Your account will automatically be credited with $10,000. This is the amount of play money you will have at your disposal for virtual commerce. There is no profit to be made from this amount, nor is there any loss.

A demo trading account allows you to learn more about how the system works, and to familiarize yourself with the various commerce conditions.

Select the type of account for work
Select the type of account for work

In addition to this, you should also understand how to use the many tools available to maximize your profits. The market is volatile; therefore, it is important to know how to use all the available tools effectively. Once you have gained sufficient experience in this area, you can easily move on to trading the real markets.

To open a real account on our brokerage site, you only need $10. And after that, you'll be able to play for real. So be careful, try not to take any chances, unless it's justified and don't invest all your capital in one bet. Good Luck!

Before you figure out how to start trading binary options in South Africa, it's important to know how the market works. You need to learn how the market operates and how to analyse trends so that you can identify opportunities in the industry. Understanding the fundamentals of market analysis will enable you to make informed choices in the procedure. Ultimately, this will allow you to make positive trading returns and earn a substantial profit.

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