Binary Options Currency Pairs and Volatility

Monday, April 14th, 2014

Monday, April 14th, 2014 by Tim Lanoue


Trading binary options can be difficult and is much harder than what is made out to be. In order to become successful in this field it takes a strong foundation about the fundamentals, experience and a small bit of luck. Today we are going to discuss currency pair trading and how volatility can effect one’s ability to accurately trade currency pairs with binary options.

What are Currency Pairs?

Currency pairs are assets that reflect the value of one currency value directly against it’s matching pair. The first currency pair is known as the base currency while the second pair is known as the quote currency. Currency pairs are continuing to grow in popularity and are among the most popular traded assets aside from popular stocks and commodities. An example of a currency pair would be the Eur/Usd 1.3785, where the Euro dollar is our base currency and the US dollar is our quote currency. The number 1.3785 reflects the value of our pair currencies, where one Euro dollar is equivalent to $1.3785 US dollars.


Correlating Pairs

Correlating pairs can be a great way to take advantage of strong trading signals generated when watching targeted currency pairs. When it comes to trading correlations in binary options it is important to take notice on how the movement of one asset can affect the movement of a different asset. Popular correlating currency pairs would be the Eur/Usd with the Usd/Chf, Gpu/Usd, and Aud/Usd. Other correlating currency pair assets would be the Eur/Jpy, Usd/Jpy, and Aud/Jpy. When watching our targeted currency pair it is important to watch the movement of their correlating pairs, if we see a big movement or change in direction then you can bet that the correlating pairs are most likely moving in the same direction. The benefits of correlating pairs would be that they allow traders to have more trade opportunities allowing them to potentially profit more.

What is Volatility?

Volatility is the tendency and probability that an asset will change directions due to minor changes in market conditions. Volatility can be an issue when it comes to trading currency pairs because even the smallest changes to market conditions can cause an asset to become unpredictable. So when trading with currency pairs we want to make sure we trade assets that have a low volatility level, meaning that they are less prone to drastically change directions due to changing market conditions. If we trade assets that have high volatility then we are putting ourselves at risk because these assets are much harder to predict. Popular, low volatility currency pairs that we should focus on trading would be the Eur/Usd, Aud/Usd, Gpu/Usd, and Nzd/Usd.

Currency pairs are a great asset to trade when trading binary options. Now that you have a basic understanding on what they are and how volatility can be a significant factor hopefully you can use this to your advantage. Make sure to pay special attention to correlating pairs along with volatility. If you have any questions or comments please feel free to leave them below.

Optionbot VS Optionbot 2

Thursday, April 10th, 2014

Thursday, April 10th, 2014 by Michael Freeman

The first version of Option Bot was set on 3 pip M15 and would check the pip movement 4 times per hour, on the hour, quarter based the hour, half past the hour and quarter to the hour. So should there have been a 3 pip or greater movement that had occurred between 12:15 and 12:30 then at 12:30 the software would give you an alert saying either call or put depending which way the movement was. The problem with this was that if there had been both an upward and downward movement in that 15 minute time frame, you would get the same currency pair saying both call and put at 12:30 causing confusion for the trader. This was one of the major shortcomings of Option Bot when it first launched in October 2012.

In addition to this issue, option bot 1 taught the trader to trade in the opposite direction of the signal, but gave no explanation as to why, and there’s a reason for this which I’ll explain now. Gary Davies the creator of Option Bot is a computer programmer that enjoys trading Forex, the fact he enjoys trading doesn’t necessarily mean that he knows much about trading, and for this very reason he came up with the trading against signals on M15 and 3 pip movements simply because just happened to work for him when he recorded the demo video, he actually told people to come up with there own settings for the parameters and to email him the results. This is also the reason that after sales service and support was practically not existent, it was just him replying to emails, however his knowledge was limited to the technical side not the trading side.

However despite these slight issues, Option Bot became a very popular tool for binary options traders which left Gary Davies overwhelmed an unable to handle the support by himself. This is where he caught the eye of a company called Option XE, a company that specialize in training and advising home traders. Option XE had Option Bot redeveloped as a web based application, and tweaked the coding so that the M settings would be continuously reading 15 minutes intervals and altering the user to whatever movement you have it set to immediately.

With this in mind, Option XE’s in house trading office looked at several different strategies and the probabilities that are linked to binary options trading, which is how they came up with their spreading method and M15 20 pip movement. When you get alerted to a 20 pip upward or downward movement you should then place a trade in the same direction as the alert ONLY after you have referred to the chart and that you believe that the market is going to continue in that direction.

Option Bot now benefits from the multinational support center at option XE, and every customer has a dedicated trade analyst that will help you understand how to use the signals from option bot.


Updated List of Option Bot 2 Brokers

Cherry Trade, Interactiveoption, Option Now, Bee Options, Platinum Trader, Redwood Options, Optimarkets, XPmarkets, Topoption, Opteck, Poweroption, Capitaloption, Citrades, Brokerage Capital, NRG Binary, RB Options, LBinary, 99 Binary.

At the end of the day, option bot is a trend indicator, a tool to allow you to keep an eye on the currency market without starting at your screen for hours. I highly recommend the Option Bot 2 for anyone interested in a reliable software for binary options! Checkout the complete list of Binary Options Signals services!

Basics of the Klinger Volume Oscillator Histogram Indicator

Monday, April 7th, 2014

Monday, April 7th, 2014 by Tim Lanoue

Not only are we going to cover the basics of the Klinger Volume Oscillator Histogram indicator but we are also going to discuss how to properly apply this indicator into a highly accurate binary options trading strategy. The KVOH indicator is a powerful financial instrument that is very similar to the Klinger Volume Oscillator indicator however it displays a histogram instead of a oscillating line. This is especially beneficial when trying to predict whether or not the price of the asset we are watching is likely to continue in its general direction or if it will change.

How it Works

The KVOH indicator has the main function of helping traders predict future long-term trends however it is also designed to identify and spot potential short-term reversals by analyzing the market flow on our targeted asset. Unlike the KVO indicator, the KVOH indicator display is created by a convergence very similar to the MACD indicator. In the picture below you can see an example of how this indicator would look when applied to a charting solution.

Application and Trading

When applying this indicator into a trading strategy we need no other indicators and it only requires the use of two steps before a signal can be placed. As you can see in the picture below we have four trading examples that all turned out to be in-the-money. The first step that we need to happen in order to place a call trade would be a continuation with our KVOH Histogram candle bars, so if we have two upward candles then our first step is completed. The last step is that we need a bullish candle over both of the KVOH candle bars, if they both match and are going in the same direction as the candle bars then we are good to place a trade. On the other hand, when we are looking to place a put trade we need two downward KVOH candle bars to form along with a bearish candle over each of the candle bars, if everything checks out then we are good to place a put trade.

Time Frame & Expiry Time

When trading with this indicator I prefer to use a 30 minute time frame to watch our assets, however 15 minute time frames along with one hour time frames work well also. When trading with a 15 or 30 minute time frame we want to make sure to use an expiry time consisting of 10 – 45 minutes. However, if we are using an hour long time frame then we want to use an expiry time consisting of 30 minutes to 2 hours, any time frame outside this range will affect your chances of winning the trade. When trading with this strategy I only prefer to use stocks as well, the histogram works well with volume oriented assets and generates more accurate trading signals. If you have comments or questions please feel free to post them below!

Trading Binary Options with Klinger Volume Oscillator

Sunday, April 6th, 2014

Sunday, April 6th, 2014 by Tim Lanoue


The KVO indicator also known as the Klinger Volume Oscillator is a moving average based type of oscillating trading indicator. This indicator was created by Stephen Klinger with the main function to help traders predict future long-term trends of our assets price action. One of the unique characteristics about this indicator is that although it focuses on helping traders identify long term trends it also helps traders predict short-term reversals that may occur throughout the assets live feed.

How it Works

The KVO works by measuring the incoming volume in comparison with the out coming volume. The KVO indicator is composed of a merging simple moving average line that is set at a period of 34 and 55. One of the nice features about this indicator is that on most charting solution websites and software it is already present so you would not have to configure with the settings of the indicator. The Klinger Volume Oscillator also applies divergence to help traders spot when volume and price are not confirming and moving in the direction that they should be heading. If the oscillator is heading upwards then it is telling us that the volume of our targeted is rising and vice versa for the opposite direction.

Trading with the KVO Indicator

When trading binary options and using a volume indicator we need to make sure that we are trading assets that have volume. If we were to use a currency pair or any other asset that does not possess any volume then we would see no volume in our indicator box, which is why I only trade high volume stocks when using this indicator. A few stocks that I recommend to trade when using this indicator would be Apple, PLUG, NKE, and Facebook. In the picture below you can see an example of how this indicator would look and how the trading signals are generated. As you can see I added a simple moving average line set at a period of 3, this moving average line is used to help aid in our signaling process. When looking to place a call trade we must wait for two things to occur, the first would be that we need our KVO line to pass our blue simple moving average line in an upward direction followed by the appearance of bullish candles on top of the break. However, if we are looking for a put trade scenario then we need our KVO line to pass through our blue moving average line in a downward direction with bearish candles directly above the break. If these two steps occur for either situations then we are good to place a trade.

Time Frame and Expiry Times

When using this strategy I only like to use the 30 minute time frame because I feel that the moving averages of the preset KVO indicator generate the best signals. So once our signal is generated and we are ready to place a trade we need to make sure to use an expiry time consisting of 15 – 30 minutes. If you have any comments or questions please feel free to post them below.

Best Binary Indicators for Stock Options

Saturday, April 5th, 2014

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

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.

How to Get 100′s of FREE Indicators for MT4

Thursday, April 3rd, 2014

Thursday, April 3rd, 2014 by Michael Freeman

There are many different trading approaches, tactics and indicators to assist you with binary options trading. The bright side is that all the complication calculations and formulas are no longer required in order to properly analyze price movement and predict a trend. New and seasoned traders seeking to dive-in deeper and emulate the professional strategies that professional day traders are using, can get access to this information free without paying a single dollar!

As with any product that involves a great deal of demand, there’s always a paid version to every product that’s being offered free and you can bet that online advertisers will leverage on this opportunity and try to sell you binary options indicators for Meta Trader 4, while you can get 100′s of free indicators without paying a dollar to anyone. Quality is not always measured by the price tag, as they say “The best things in life are free!” and it’s definitely the case when in comes to binary options indicators and strategies. Instead of wasting a lot of money and finding yourself paying for something that might not delivery, you can get plenty of valuable information with a quick research and test the “free stuff” before you start buying for paid indicators, training and strategies.

If you are not familiar with MetaTrader 4 and how to setup indicators checkout this video! META TRADER Tutorial Video!!


Now that we understand what Meta Trader 4 is and how we can use it to our advantage, we need to learn how to setup the technical analysis indicators on the charts. Some Indicator service providers like Boss Indicator or Binary Reaper will sell you indicators for anywhere between $50-$200 while you can download these indicators free or customize the available indicators that already come with Meta Trader 4.

Download 100′s of Free Indicators!

On MQL4 you can find thousands of trading scripts, signals, indicators on a free peer2peer sharing network. Mt4 is %100 open source which makes it the most powerful advanced charting solution for Forex and Binary Options.

If you are interested to learn how to create your own custom indicators based on your favorite asset and expiry (5,10,15 minutes) you can follow this simplified guide on Investopedia How To Create an Indicator on Meta Trader 4?

Checkout the Fence Trading strategy with the Bollinger Bands indicator and a detailed list of binary options indicators!

The Dollar Volume Indicator Strategy

Wednesday, April 2nd, 2014

Wednesday, April 2nd, 2014 by Tim Lanoue

The dollar volume indicator is a financial instrument used to measure the total volume of a certain stock or security exchange over a duration of time. More often than not these terms are expressed in USD currency format and are used as a way to measure and gauge the total liquidity of these volume oriented assets.

How it Works

There are numerous things that can affect the dollar value of a stock or security exchange. Oftentimes the upcoming holiday seasons along with the release of new products or services that revolve around these stocks or security exchanges will affect the value of these assets in either a positive or negative way. Even if a high dollar volume is presented it does not always signify a strong economy, so when we are trading with this indicator we need to pay special attention to the length of the bars that are displayed by the indicator. In the picture below you can see an example of how this indicator would look when applied to a charting solution.



Applying Dollar Volume Indicator and Trading

When preparing to use this indicator it is important to make sure that the asset that we are watching is a stock, commodity, indices or future. Currency pairs will not work with this indicator because they do not have any volume, shares or contracts therefore this indicator will not measure any volume associated with the currency pair. Moving forward when applying this indicator into a binary options trading strategy I like to incorporate a simple moving average set at a period of 11 that aids in our signal process. As you can see the Dollar Volume Indicator measures the volume of the asset and its value is displayed to the far right and it is preset with a moving average that we use in combination with our signal moving average line. In order for a signal to be generated we need to wait for our white line to break our blue moving average line in a upward or downward direction. In order for a call trade to be placed we need our white line to cross our blue moving average line in an upward direction and have it followed by a green dollar volume candle and a bullish candle. So if we have a bullish candle, an upward break, and a green dollar volume candle then we are good to place a trade. On the other hand if we are looking for a put trade we need to make sure that our white moving average line crosses our blue moving average line followed by a bearish candle and a red dollar volume candle, if all that checks out then we are good to place our trade.


More Binary Options Indicators and Strategies

Best Expiry Times

Expiry times vary according to the time frame that we are watching our targeted asset. When using the Dollar Volume indicator it is most practical to use a trading time frame consisting of 15 minutes to 30 minutes. When we are using a time frame consisting of 15 minutes we want to make sure that our expiry time for the trade is no less than 15 minutes and no longer than 30 minutes. But if we are using the 30 minute time frame then we need to make sure we place trades that expire no less than 30 minutes and no longer than one hour. Any expiry times outside this expiration range will effect the probability of you winning the trade so it is important you follow the suggested time frames. If you have any questions or comments please feel free to leave them below.

The PVO Indicator Strategy for Binary Options

Monday, March 31st, 2014

Monday, March 31st, 2014 by Tim Lanoue

The PVO indicator otherwise known as the Percentage Volume Oscillator is a momentum oriented type of oscillator that falls under the category of a centerline oscillator. The main function of the PVO indicator is to gauge and measure the difference between two simple moving averages in correlation with a large exponential moving average. This indicator is particular helpful when trading stocks in the binary options industry because it deals with an assets volume.

How it Works

The Percentage Volume Oscillator has default settings so when you apply this into your charting solution you should not have to customize it to the preferences used in this article. Default settings for this indicator involve the simple moving averages to be set at 12 and 26 while the exponential moving average is set at a period of 9. These periods are used to measure time in days, so the first PVO line that is represented as the blue line below gauges the volume of the stock over the past 12 and 26 days. While the exponential moving average, seen as the red line in the picture below, acts as our signal line.


How to Properly Apply

When using this indicator it is important to make sure that we are using a stock that has high volumes. After all this is a volume and momentum type of oscillator so we are constantly measuring and gauging the health and overall status of our targeted asset. Some high volume stocks that I would recommend to trade with this indicator would be Apple, PLUG, MRK, DTV, and FB. In the picture provided below you can see how we would use this indicator to trades stocks in a binary options trading strategy. As you can see we have an example of a call trade along with a put trade. In order to place a trade we need to wait for two things to occur, the first thing would be we need our exponential moving average line to cross our PVO average line in either a downward or upward motion. The last thing we need to make sure of is that the direction that our red line breaks with our blue lines correlates with the current trend above that break. So in the first example you can see that our red line crossed our blue line in an upward direction and there was an overall bullish trend present so we go ahead and place a call trade. The opposite goes with a downward break, if a downward break occurs then we need make sure a bearish trend is present and if so then we are good to place a put trade. In addition, those yellow stars present in the picture display where our trades would have expire, as you can see they both are winners.

Best Expiry Times

When trading with this indicator we want to make sure that we are using a time frame consisting no less than 15 minutes and no longer than 30 minutes. When we are using a 15 minute time frame we want to make sure that we are using a time frame consisting of one hour. However, if we are using a 30 minute time frame then we want our expiry time to be near the two hour range. The reason why we are using longer expiry times would be because we are dealing with high volume stocks and we need to make sure that the trend will more than likely continue. If you have any questions you can feel free to leave them below, thank you for your time!

More Indicators and Strategies

Top 5 Free Binary Options Charts

Sunday, March 30th, 2014

Sunday, March 30th, 2014 by Michael Freeman

Let’s start by answering the most important question concerning charts. Why do we need live charts when we trade binary options? After all, the broker platforms include live streaming asset charts and we can trade directly from the binary options website. This is true, however the charts on the broker’s platform don’t include the following: Candlesticks Charts, Indicators, Extended Asset Timeline and the option to upload Technical Analysis Indicators, Trading Scripts and the various tools that are provided on the charting software and websites. The second question is, should we pay for charts and purchase NetDania or should you go with one of the free binary options charts? After comparing NetDania to the charts on or MetaTrader 4 I found that both the paid and free charts practically include the same features, components and functions which makes it a wasteful expense to purchase a charting software where you can get exactly the same..without paying for it!

Checkout my Top 5 Free Binary Options Charts! – The charts offered on the websites are highly recommended and include popular indicators and Candlesticks Charts. On you can view all 4 asset groups traded on binary options platforms. is considered one of the biggest financial portals in the world and you can find daily currencies analysis, professional trading tools and industry news. Just like Investing is a highly recommended online trading portal targeted for Forex and binary options traders. The only issue with is that they don’t offer live commodities charts so if you plan to trade Oil, Gold, Silver, Copper or any of the commodity options offered on binary options platforms, you should probably choose for a free web based charting solution. is the ideal live charting website for stock option traders who are looking for detailed charts for practically any index, sub index and stocks that are traded in the world. The great thing about Free Stock Charts is that they offer a wide range of indicators that you won’t find listed on or on is a free downloadable charting software and the most popular one in the Forex community. This is an open-source charting solution that includes a wide range of indicators, trading scripts and the option to upload your own indicators directly to the software. This is a very popular solution for Forex traders as it allows you to sync your Metatrader with your Free Demo or Live Spot Forex Account. is a hybrid between a ‘collaboration social network’ and a charting solution, allowing traders to exchange trading ideas in real time, using real live charts. This solution allows traders to share live charts and post annotations directly on the charts, making it a powerful collaboration tool both for beginners and expert traders.


Interested to learn more about Binary Options and Forex Indicators? Checkout the details list of technical analysis indicators! If you have any questions on one of the above Free Binary Options Charts, please comment below and for all other questions you can email me at [email protected]

Binary Options Forecast via News Reports

Saturday, March 29th, 2014

Saturday, March 29th, 2014 by Michael Freeman

To be successful with Binary Options, all are encouraged to stay up to date with current news and media reports in order to reveal essential information that has a direct effect on the price of a security. There is a substantial amount of traders who set out to uncover profitable trades completely by monitoring press reports and then utilizing this information to predict marketplace sentiment and the future price action of an asset. This technique is really not as difficult as some may think.

Binary Options Forecast In Action

There will be moments when news reports are likely to supply you with a great advantage during your trading session. News releases which supply details in correspondence to paramount economic information have the ability to swiftly change the selling price of any security. This data may cause volatile price action inside just a moderate period of time and for that reason should be contemplated when constructing paramount investment conclusions and choosing trade parameters.

Economic data press releases can be connected to a variety of various types of business, companies, entities, governments, and more. Anytime this sort of information is determined as being positive, any security that is connected to this information is most likely going to rise in value. On the flip side, whenever the information is perceived in a negative light, the price of each connected security is most likely going to fall. No matter if the security price increases or decreases, we are destined to be in a favorable position to trade for profit when we are aware of the numbers.

There are a variety of various forms of news reports which will have the ability to not solely alter the price of a security, but can modify the value of whole markets. Take for example a data release which claims that the unemployment rate within a country happen to be rising. This kind of information is very probable to cause a fall in the value of one or more indices within the country that the information is connected to. These forms of events provide a magnificent time frame for engaging into a call/put option making use of any connected index or indices.


If you intend to make money from monitoring financial data press releases, then you are going to need access to at least one reliable data resource. You will also be required to fully comprehend primarily how the most contemporary data are likely to impact the marketplace and security prices. Furthermore, you’ll require being competent of deciding with some stage of precision the time frame throughout which the index or specific asset value will be regarded by a report or economic data release. Improving this technique is going to make it feasible for you to get into a variety trades in correspondence to the same piece of information.

The all-inclusive value of a variety of underlying assets could possibly be affected by primary data reports. You should certainly be monitoring for a variety of profit opportunities when possible, mainly during moments in which lower risk binary options trades are being introduced. Whenever tough price trends are demonstrated and continue to be in place for any amount of time, you can rapidly tackle many profitable trades at the same time. When the trend comes to an end, you may at that point produce profits from the price movement reversal. Breakout points are another choice during times when market sentiment is really powerful.

Just a fast look at current news reports may be all that is required to assist you in bringing in considerable profits. Many less experienced traders are baffled at the feeling of being able to attain so much money so fast and easily. The bottom line is that any sort of notable news release or news report is going to make it attainable for you to lock in earnings within just a couple of minutes provided that you know what to be looking for, and then the suitable actions to take based on what you have learned. I hope you all enjoyed this and found it helpful. For more information on out to develop your binary options forecast, visit the Binary Options Strategy Survival Guide!