Introduction to Indices Option Trading

Friday, August 15th, 2014

Friday, August 15th, 2014 by Tim Lanoue

Indices are perhaps one of the most underutilized trading assets due to their lack of popularity and the unfamiliarity that traders share with the index. For those of who you are unfamiliar with what indices are they simply an index used to reflect and measure change in the economy. Every index is different in their composition, meaning the make up and they all act differently. Below I will cover what to look for when trading indices and the indices best utilized with the fundamental suggestion.

Strong Bearish/Bullish Trends with Dollar Value

The overall dollar value will always effect the price of an index. You have to remember that indices are used as a way to measure certain market conditions and assets. So as you can imagine if the price of the dollar is rising so will the price of a certain index. The opposite could be said when the price of the dollar goes down, some indices will rise and others will drop in value. Tangibility wise though indices do not carry any true value, there value is indirectly effected by market assets and conditions. When the price of the dollar value is rising, popular assets to place call trades with would be the S&P 500, DAX 30, Bitcoin, and NASDAQ 100 and Dow Jones. However, if the value of the dollar is decreasing then indices you would want to trade would be the S&P 500, NASDAQ 100 NS FTSE 100.

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Rising Price Value of High Volumed Stocks

Many of the more popular indices are a reflection on a number of stocks, so when the prices of high volume stocks are changing so is the value of certain indices. Popular high volumed stocks that you should watch are as listed: KATE, AAPL, TWTR, FB, and MSFT. When the value of these major stocks are effected I would consider placing a trade in the same direction that the stocks are going with the indices S&P 500, FTSE 100 and MSCI.

Price of Oil

Oil has such a strong correlation with currency pairs and stocks but what many traders fail to realize is that it also affects the value of an index. This main index would be the S&P 500, when the price of oil rises the value of the S&P 500 will decrease and vice versa. So if the price of oil drops then the price of the S&P will increase. I use the correlation between oil prices and the S&P 500 when trading binary options almost on a daily basis, it is extremely easy to take advantage of and is highly effective.

Indices are the most under-traded asset in binary options and will probably continue to be due to lack of popularity. If you are new, experienced or a trader who prefers fundamental analysis opposed to technical analysis trading strategies then this strategy would be great for you. Sometimes to really pays off taking advantage of the little correlations that go on between indices and market conditions that could ultimately dictate your amount of success as a binary options trader. If you guys have any questions or comments please feel free to leave them below.

Checkout the NEW and Improved Strategies and Indicators for Binary Options section on the BinaryoptionsChannel.com

Why are most Binary Options Signals not successful?

Thursday, August 14th, 2014

Thursday, August 14th, 2014 by Michael Freeman

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In reference to my last YouTube video answering the question “Why most Binary Options Signals services FAIL? ” I decided to post this article for my blog subscribers and other readers who might be asking the same important question.

So why most signals services fail? The first reason, which is not what I am going to be discussing today is that many of the services are simply fake and/or have no clue on how to trade binary options and obviously can’t meet the advertised performance. However, this is not the reason I want to go over today and instead I want to discuss the reason why the highly rated, profitable services are often unable to deliver subscribers with a profitable trading results. There is a core issue that many services fail to address on their offer pages and it might be in deliberately but in doesn’t change the sad reality in which the end result is a losing performance!

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The Reason why Most Binary Options Signals FAIL is because each broker offers different entry and expiry times so in many cases what happens is that the signals service or softwares sends/generates a signal, with the signal not matching any available expiry time on your trading platform. Many traders end up setting the expiry for 15,30 minutes later than the specified expiry on the signal. The problem is that even if you’re off by a few minutes in setting the expiry according to the signal, you can lose a potentially winning trade. Binary options are traded on short-term expiry times and price can be extremely volatile, every pip counts and if a trader is unable to match the signal’s expiry with an expiry that’s currently available on his/her live trading account, the signal is worthless.

Most of the signals services don’t address this issue and many traders end up giving up because they can’t seem to make sense of how to set the expiry according to the signal and based on all the feedback I am getting from traders, it seems like the issue is widespread and many signals services and software fail to find a solution to this significant matter.

I want you guys to take the Option Bot 2.0 as an example, as it’s one of the few software developed with this factor in mind. They found a solution to this problem by introducing a software that allows traders to maximize their ability to accurately trade each signal that is generated by the software by allowing traders to enter trades on multiple broker platforms simultaneously while automatically identifying the broker with the matching expiry for each signal the software generates. By the way, I am a great fan Gary Davis fan (the software developer), supporter and active trader on the Option Bot 2.0 and if you plan to trade / or currently trading with the Option Bot 2.0 I want you to checkout the YouTube video on my recommended trading hours, setting and currency pairs when trading on the Option Bot 2.0. (Optionbot Best Setting, hours and Assets) It’s one of the most popular software in the market today and maintained its reputation over the years due to its ability to retain their traders by delivering profitable results. The idea of trading a profitable signal on multiple platforms is very appealing as it allows traders to leverage the profits from each signal delivered by the Option Bot 2.0 while the signal’s expiry matches 2+ broker platforms.

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If you shop around for a reliable software or signals services, your search might yield no results since almost none of the software or services in the binary options market today, managed to connect traders with the right brokers or take the necessary steps in order to create a software that can match each signal with the right expiry offered by their clients brokers.

I also operate my own signals group and send signals to a group of subscribers, I make sure to address this issue in my own way by sending signals with expiry times that are available on all broker platforms listed on my signals group and I also help traders understand the time zone differences in case there’s any confusion. Another issue is with support, if traders have no clue how to trade the signal and the service doesn’t offer proper support, the trader is bound to fail. The goal is to make sure that a trader is able to enter the trade %100 in accordance to the signal. The Option Bot 2.0 managed to automate this process while in my case, I don’t offer a software to my subscribers but my signals are delivered on time via email or SMS. If you are interested to participate in my signals group you can register on my Mike’s Signals Group Page!

My conclusion is that obviously there’s a way to solve this issue but most binary options signals simply don’t care if the signal matches the trader’s entry/expiry times and in many cases this is the reason why most services, reliable or not, end up failing their subscribers!

I hope this article clarified this very important issue that bothers many traders. I receive many emails from traders who report failed experiences and often with services that are known to achieve good results and receive high ratings, yet if they fail to connect their traders with the right brokers, chances are they might set their traders for failure.

Visit my list of Recommended Signals on the BinaryoptionsChannel.com

If you have any questions on binary options signals services, software or anything else relating to binary options you are welcome to comment below or email me at [email protected]

 

 

No Touch Strategy for Binary Options

Wednesday, August 13th, 2014

Wednesday, August 13th, 2014 by Tim Lanoue

After receiving numerous emails these past few months about possible No Touch options trading strategies, I took it upon myself to construct and test out a no touch binary options trading strategy that delivered consistent results. For those of you who are not familiar with no touch options they basically are the exact opposite of one touch trading strategies. Basically, you are predicting that the price value of one asset will not reach a certain lower or higher price barrier, if the price passes any of those barriers you lose the trade, however, if not then you can see investment payouts up to 300-500%. Meaning that if you invest $100 you can see a return of $300-500 for one trade. Moving forward I will cover the basics of my no touch trading strategy.

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The ‘No Touch options’ Strategy Guidelines

Probably the most crucial part of this strategy is the set-up, you have to make sure everything is set-up correctly or you will more than likely lose the trade. You will need access to a charting solution, I prefer to use www.freestockcharts.com because it loads quickly and they have a large number of indicators and tools that you can use and take advantage of. When I was trying this strategy out I was only trading from the following four currency pairs: Eur/Usd, Usd/Chf, Usd/Cad and Nzd/Usd. These currency pairs have low volatility, meaning that they are less prone to change directions due to minor market fluctuations. So once you have selected a couple of the assets to watch you want to make sure that the time frame that you are watching those assets is set at 15 minutes. No Touch expiry times vary by broker so I like to watch a medium timed candle I guess you could say just to play it safe. Next I add an exponential moving average and have it set at a period of 20, once that is done then you are onto the next step.

The No Touch Strategy Explained!

Now that you have everything set up properly it really is just a waiting game until you find the right opportunity. In the picture below you can see an example of how I would trade this strategy. If our moving average line is crossing through any of our candles then I do not set-up and place a trade, I wait for it to weed itself out of the candle and then see where it is. If it is below the candle then I wait for a second confirmation candle, as seen below and if that candle does not touch or cross that moving average line then I will take that no touch trade saying it will not go below that selected barrier. And vice versa for if the moving average is above the candles, I wait for a second candle confirmation and then place an investment saying that the price value will not pass or touch that resistance barrier.

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Where can You Trade No Touch Options?

Trading binary options with the no touch style can be difficult to master but as long as you apply this strategy correctly then you should have no problem seeing huge investment returns. Lately, I have just been doing 2-3 of these trades per day and have seen some large payouts that are extremely rewarding. If you are interested to get started with the No Touch feature, keep in mind that most brokers don’t offer it. Below is a link to my highly recmmended No Touch broker and one of the few brands to integrate Forex and Binary Options features in one platform with Stop-loss, Short-term, Long-term, wide range of expiry, One/No touch and a wide range of technical analysis tools offered on the platform.

For more informatio on YESoption, checkout the complete YESoption Review by Michael Freeman

Top ‘No Touch’ Binary Options Brokers!

YESoption.com

As always guys if you have any questions or comments please feel free to leave them below, I love to hear your feedback and help you guys out!

 

Silver Option Trading – The Smart Way!

Tuesday, August 12th, 2014

Tuesday, August 12th, 2014 by Tim Lanoue

Binary options traders of all experience levels constantly seem to be out on the prowl for the holy grail of trading strategies. Like I have said, and many other wise traders have also said, there is no such thing as the holy grail trading strategy. If you ever come across a website, article, or product that claims to be the “best” I would take it with a grain of salt. Many traders fall under the impression that the only way they will succeed if is they are using charting solutions and using indicators to predict trades, however, what many fail to realize is that using fundamental analysis can be just as effective as using technical analysis strategies. Moving forward we will cover what effects the price of silver and how it can be applied to a trading strategy.

Changes in Oil Prices

As a long time indicator for dictating changing prices of popular commodities, the change in the value of oil will indirectly effect the value of silver. If there is a large dip in the price of oil, you can see how the price of silver will also drop. However, if the price of oil starts to soar you can bet that the price of silver will also soar. This can be an extremely effective strategy to use when trading classic option style binary options.

Lessening of Dollar Value

Inflation and the decrease in the value of the dollar will directly effect the value of silver. Now this may be difficult to understand but when inflation occurs (meaning the price of the dollar value rises yet it loses value) the price of silver will more than likely decrease. Yes, thats right, decrease. On the other hand, if the price of the dollar value decreases then the price of silver will more than likely increase. It kind of has an adverse effect on the price of silver.

Nationalization of Silver

Although this is not a problem yet it could be a huge factor that could some day effect the price of silver. Peru is one of the largest producers of silver and if their president was to nationalize silver it would severely limit the amount of silver produced causing prices to spike to new, unimaginable highs. This is something definitely to keep an eye on because if done the price of silver would rise for months at a time, meaning you could ride up trends while trading binary options where you are more than likely to win every investment made.

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Trading Silver Option ‘The Smart’ Way!

The use of charting solutions and indicators will always serve as the backbone when it comes to any style of trading. However, using fundamental analysis is an easy way to take advantage of easy trade opportunities without the use of trading indicators. The two constant things to be on the look out of are the prices of oil and the dollar value, these are the two most common factors that effect the price of silver. The nationalization of silver has not occurred yet and it may not but if it does make sure to take it for hard bull calls. Hope you guys enjoyed the article and best of luck trading! If you have any suggestions, comments or questions please feel free to leave them below!

 

Is ITM Genesis Elite a SCAM or a Reliable Sofware?

Sunday, August 10th, 2014

Sunday, August 10th, 2014 by Michael Freeman

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Is ITM Genesis Elite a scam?

My quest to find if the ITM genesis Elite is legitimate, landed me on a YouTube video by a fairly believable individual by the name of Randy Churchill and in his video, ITM Genesis Elite – Does The Software Work?, he mentioned how in the ITM Genesis Elite promotional videos, the promoter demonstrated live trades with a %100 a winning trading record. In fact, this promoter appeared to have posted lot’s of videos showcasing a flawless performance using the ITM Financial products such a the ITM Genesis Elite. Can anyone truly achieve such “excellency” with online trading?!

ITM Genesis Elite Live Trades – Real or Fake?

I seriously question the authenticity of the trades and wonder if they were made using a live trading account or from a demo and as Randy stated “Binary International (the broker synced with ITM Genesis Elite) provides traders with a free demo so anyone who is interested to promote the ITM Financial Products (ITM Genesis Elite, GCAD and so on..) can register a free demo account and selectively showcase the most accurate trades and spam YouTube with promotional videos.”

It doesn’t take a math genius to showcase %100 winning live trades “risking” $1000′s of dollars on each trade,while you’re trading on a demo account and since demo and a live accounts are identical, viewers can’t really evaluate the true performance of the product and know if the trades are made with real money.

ITM Financial Products - Simply CRAP?

Another point Randy made is in regards to the alleged track record of ITM Financial of releasing “worthless” products and advertising the same products with different names. The main products advertised by ITM Financial are the ITM Platinum Pro, ITM Platinum Nexus, The GCAD Indicator and the ITM Genesis Elite, apparently all pointing to BinaryInternational.com trading platform, requiring traders to register an account and in addition to pay a software fee of up to $4,997! This is just in the case you’re planning to buy the ITM Platinum Nexus life-time membership…On the product description, they epically quote: “for serious traders only”. It seems to me like they’re trying to catch a ‘big fish’ in an ocean of traders who are looking for a decent software.

Randy sums it up in one word, ‘CRAP’ and to add fuel to the fire, apparently Michael Hodges from Binaryoptions.net is also not such a big fan of the ITM Financial products, according to his article titled “GCAD Indicator from ITM Financial Comes with a Catch” he emphasized the deliberate and obvious false advertising associated with the way in which ITM Financial sells the GCAD Indicator as a trading system while in reality it’s just another Technical Analysis Indicator, originally developed to spot trends for the CAD/JPY currency pair. The GCAD indicator is an Oscillator which can be found on MetaTrader 4 and many other charting solutions. What’s left to say? I am inclined to agree with randy’s statement “It’s CRAP” as well as with the point made by Michael Hodges in regards to the fine work of sugar-coating indicators into fancy looking products, however I am still interested to get some feedback and comments from traders who are using or previously used any of the above products so we can get a precise idea of what kind of performance one might expect.

 

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Binary options trading requires a system that can take into account the broker’s entry/expiry times. Traders often miss out on many ideal trading opportunities when the signal services are sending them signals with an expiry that’s not available on their trading platform. It is frustrating to receive a strong signal and realize you can’t safely trade it. This is an issue that caused many signals services to fail, the inability to generate signals that match their clients platform’s expiry times.

The Alternative Solution

There is one software I found to be ideal in it’s compatibility with binary options, the Option Bot 2.0 by Gary Davis. The software takes into consideration the different brokers entry/expiry times and provides traders with a software interface that enables live trading on multiple broker accounts for the purpose of always matching each OB2 signal with the ideal expiry, with an option to execute the trades automatically on multiple trading platforms.

The software generates signals based on their home-made, trend following formula, customized to analyse short-term movements for all the currency pairs offered on the binary options platforms. The Option Bot 2.0 is the only binary options software fully synced with multiple accounts and enables traders to enter positions simultaneously and automatically via one software.

The Option Bot software maintained it’s reputation over the years and became one of the leading and most viral software in the market. On a side note, instead of having to come up with new names and new faces like ITM Financial and other signals providers operating under different names, Gary Davis released a newly improved version of the same software, keeping the same name and the same brand 1000′s of traders have grown to trust. My YouTube subscribers from back in 2012 would testify that I was very skeptical and ignored all the positive ratings and endorsements given to Gary Davis across the web and eventually I was proven wrong and can now testify that I owe a lot of my success in binary options to Gary Davis.

In one of my recent videos on YouTube I went over my ideal setting, trading hours and assets for the Option Bot 2.0

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I am still not confident in my assumption that ITM Genesis Elite is a scam, perhaps it’s just a nicely wrapped product with no real substance or maybe it’s based on real indicators but doesn’t meet the advertised performance. In order to properly evaluate ITM Genesis Elite, GCAD Indicator or any ITM Financial / BinaryInternational.com products I would love to get your feedback, comments and detailed experiences.

Please share your experience or comments below this post

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Before you go, checkout the recommended Binary Options Signals on the BinaryoptionsChannel.com For more information on the world’s more accurate Indicator/signal Software visit the Option Bot 2.0 Review

My Bullish MACD Strategy

Tuesday, August 5th, 2014

Tuesday, August 5th, 2014 by Michael Freeman

In this article I plan to explore the MACD, Moving Average Convergence Divergence indicator which goes hand in hand with my favorite binary options gold strategy. Professional Forex and Binary Options traders all agree that using a single indicator on it’s own is not a sufficient way to generate consistent winning trades. The use on an indicator, including the MACD must be combined with a strategy and ideally with fundamental analysis.

I know that many of you are not familiar with MACD and I want to break it down today and provide you an insight for how this powerful technical analysis can assist you with predicting an accelerating Bullish Trend, since MACD in definition is a ‘short-term trend following, momentum indicator! It shows us the connection between two moving averages and let me explain.

MACD has 3 components

1) MACD line = the difference between two moving averages, set by default on 12 day – 26 day EMA)
2) A signal line = 9 day EMA. Important: This is our Buy/Sell Trigger or in reference to binary options, our CALL Signal!
3) The Histograph = represents the difference between those two lines. so for example when the two lines meet the histogram is at zero.

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MACD Tutorial on YouTube – Recognizing a Bullish Signal on a 60 minute chart

How do we recognize a bullish signal?

1) When the MACD line crosses over the signal line, it signals us to buy (call trade). In essence, the forumula that’s behind this indicator calculates the increasing upward momentum, and it’s presented to us visually with the MACD line crossing over the signal line.. simple as that.

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2) another way to use MACD is with the centerline method where you’re basically observing the histogram and when it reaches ZERO you know that the MACD line is crossing over the Signal Line suggesting an accelerating bullish trend, signaling us of an opportunity to enter call trade once the two lines intersect and the histogram at zero, as the MACD is about to climb above the signal line.

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Watch my YouTube Video explaining how to trade using the MACD Indicator with reference to the Gold Option Strategy

The indicator is usually offered on all the free charting websites including on Investing.com and you can set it on 5 minute candlestick charts or 1 hour, depending on your trading preferences. The MACD is an ideal indicator for short-term and works together with my favorite Gold Strategy for Binary Options which is bringing me a lot of success! If you have any questions you are welcome to email me at [email protected] or comment below this post. Also checkout the MACD Explained! article by guest blogger Sjay Bell for his own approach when dealing with this very popular indicator!

Keltner Channels

Sunday, August 3rd, 2014

Sunday, August 3rd, 2014 by Sjay Bell

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Keltner Channels are unpredictability based envelopes set over and underneath an exponential moving average. This is very similar to Bollinger Bands, which utilize the standard deviation to determine the groups. As opposed to utilizing the standard deviation, Keltner Channels utilize the Average True Range (ATR) to set channel separation. The channels are commonly situated two Average True Range values above and beneath the 20-day EMA. The exponential moving average regulates bearing and the Average True Range sets channel width. Keltner Channels are a trend following indicator employed to distinguish inversions with channel breakouts and channel heading.

Since moving averages slack value, a more extended moving average will have more slack and a shorter moving average will have less slack. ATR is the fundamental unpredictability setting. Short time spans, for example, 10, deliver a more unpredictable ATR that vacillates as 10-period unpredictability recurring patterns. Longer time periods, such a 100, smooth these vacillations to create a more steady ATR interpretation. The multiplier has the most influence on the channel width. Basically transforming from 2 to 1 will cut channel width into equal parts. Expanding from 2 to 3 will expand channel width by half.

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Technical indicators focused around channels, bands and envelopes are intended to incorporate most value activity. Trends regularly begin with solid moves in one course or an alternate. A surge over the upper channel line shows exceptional quality, while a plunge underneath the lower channel line shows phenomenal deficiency. Such solid moves can indicate the end of one pattern and the start of an alternate.

With an exponential moving average as its base, Keltner Channels are a trend following tool. Similarly as with moving averages and trend following indicators, Keltner Channels slack value activity. The course of the moving average directs the bearing of the channel. All in all, a downtrend is available when the channel moves lower, while an uptrend exists when the channel moves higher. The pattern is level when the channel moves sideways.

A channel upturn and break over the upper trend line can indicate the start of an uptrend. A channel downturn and break underneath the lower trend line can indicate the start of a downtrend. Now and again a solid pattern does not take hold after a channel breakout and costs waver between the channel lines. Such trading ranges are stamped by a generally flat moving average. The channel limits can then be utilized to recognize overbought and oversold levels for trading motives.

Visit the complete list of Free Indicators and Strategies for Binary Options on the BinaryoptionsChannel.com

Keltner Channels are a trend following indicator intended to recognize the underlying trend. Trend identification is more than a large portion of the fight. The trend might be up, down or level. Utilizing the routines depicted above, traders and investors can recognize the trend to create an trading inclination. Bullish exchanges trades are supported in an uptrend and bearish trades are supported in a downtrend. A level pattern obliges a more agile methodology in light of the fact that costs regularly top at the upper channel line and trough at the lower channel line. Likewise with all analysis procedures, Keltner Channels ought to be utilized within conjunction with different indicators and techniques. Momentum indicators offer a decent supplement to the trend following Keltner Channels. I hope you all enjoyed this and found it helpful. Be sure to check out our other articles for even more awesome information. Cheers!

The Gold Strategy for Binary Options!

Saturday, August 2nd, 2014

Saturday, August 2nd, 2014 by Michael Freeman

Gold is one of the underlying assets traded in the binary options market. Many Gold retail traders and shifting to binary options due to high cost of trading gold offline. The capital requirement is often in excess of $10,000 in the retail gold trading world while Binary options allows traders to initiate trades with less capital and a chance to get higher returns on shorter time frames, as you can trade $25 and with some brokers as low as $5 on a Gold option on time frames ranging from 30 seconds to 30 days.

In my videos and articles I always emphasize the important of focusing on one or two underlying assets when trading binary options and it’s the ideal approach while trading the Gold option due to the straight forward analysis and easy to use indicators that are required in order to evaluate the future short-term price movements of the Gold option. In fact, some traders including myself are trading gold multiple times every day, with my own signals group I have days where most of the signals I send to my subscribers were purely Gold Call trades and in my luckiest days I managed to pull %90-%100 ITM just by riding a Gold trend for the entire trading session!

Today I really want to break down the gold analysis for you guys, so all of you will be at the position to trade gold using a solid combination of fundamental and technical analysis so keep reading…

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What makes gold tick literally?

Traders love gold because it is a safe-haven financial instrument which they can purchase in periods of uncertainty. As at late 2011, there was a major uncertainly in the market and the the price of gold shifted in an upward direction, this trend lasted for days at a time and continued for months. Traders who were lucky enough to spot these amazing trends, managed to pull thousands and hundred of thousands of dollars by riding the Gold trends with high trade amounts.

In order to understand Gold you have to look at the gradual increase in value over the years.. it’s one of the most stable long-term ‘uptrend assets’. in 2005 the price of gold was $513 .. and by 2010 the price almost tripled.. in 1970 the price was only $37! The increase in the value of Gold is mainly affected by scarcity, growing demand and when things are uncertain and people rush to buy gold. Scarcity and demand increase the price of gold over time, however ‘Uncertainty’ carries the short term affect we’re looking for as day traders.

The key to understanding GOLD is Uncertainty!

So if the ability to identify uncertainty is the key to understanding why Gold tends to go into a solid uptrend, what type of market indicators should we work with in order to trace down the ideal moments to enter call trades? and to remind you, the Gold uptrends are usually a matter of days, it can escalate to weeks but for us binary options traders, we are looking for the weekly type trends, allowing us to enter multiple daily call trades. I will also go over a technical analysis indicator you can use to verify your prediction in the next section on this article but first…Uncertainty can be triggered by one of the following: Market Indicators for Gold 1) Decline of the US dollar, Gold and the US dollar move inversely in value, forming a negative correlation. When the dollar goes down, the price of gold goes up. 2) When the Feds lower interest rates in hopes of promoting trade between banks, the value of the dollar goes down and the value of gold goes up. 3) Look for major events relating to the US economy.. with the growing deficit you can be sure that Gold is heading towards a smooth and long lasting uptrend.

The way things are looking with growing world-wide instability and as long as the US economy keeps heading in the direction it is going, at least for awhile, then we will almost surely see gold hit an all time high! So now that we all agree that the focus with Gold should be on identifying Up Trends..

Technical Analysis – Indicator for Gold There are lot’s of different indicators for short term analysis but in this case you’re looking for an indicator that can reaffirm a positive uptrend momentum and alert you incase of a potential reversal, which is why the MACD indicator is ideal. Now incase you are not familiar with the MACD indicator and how to set it up your free charts, I included an overview video provided by Investopedia.com on the MACD so check it out .

Read more about the MACD Indicator, an overview by Sjay Bell a guest blogger for the BinaryoptionsChannel.com

Complete list of free strategies and technical analysis indicators on the BinaryoptionsChannel.com

MACD Explained by Investopedia.com – Watch this short video!

Trade Gold with OptionFair How to setup the MACD on Free Online Charts? It’s very simple. Investing.com offers professional live charts for all binary options underlying assets with an option to add your preferred indicator on the charts. Checkout the following snapshot of how to select the MACD indicator from the drop down menu on investing.com. investingcharts

Investing.com is offered free and you can set the charts for anywhere from 60 seconds and one month. If you’re planning to test this strategy or any other binary options strategies I recommend using a free demo account. If you are interested to participate in my signals group and follow my gold signals every day, Monday until Friday, you can signup on the signals group page and for more information on binary options strategies make sure to subscriber to the binary options blog!!

Interested to trade gold for as low as $5? Checkout CherryTrade!

If you have any binary options related questions you are always welcome to email me directly at [email protected] Thank you for taking the time to read this article! Cheers! Mike

Standard Deviation Technical Indicator

Friday, August 1st, 2014

Friday, August 1st, 2014 by Sjay Bell

Standard deviation is a technical indicator that calculates the magnitude of current price changes of a security in an effort of anticipating how volatile the price may be later down the road. It can assist the trader in determining whether the volatility of the asset is probable to elevate or fall. A reasonably high standard deviation interpretation suggests that a big price change has just taken place, merely that a drop in volatility may shortly trail. A fairly low standard deviation interpretation suggests the contrary.

This technical indicator is a component of the computation of Bollinger bands, and is too practically synonymous with volatility. It estimates the scale of price deviation associated to the moving average. This conveys that if the indicator’s reading is strong. The market is undergoing excessive volatility and candlesticks are somewhat spread around. Conversely, if the reading is lower, then asset volatility is small and prices are somewhat near the moving average.

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Generally, standard deviation is a compound of other technical indicators. For instance, when Bollinger Bands are computed, the standard deviation reading is added to its moving average. The standard deviation indicator is effortless to understand being that it displays market performance, which itself is made up of movements between very active and inactive market environments. If a reading is given that is excessively small, i.e. the market is extremely sluggish, it would be ideal to anticipate a spike soon. If the interpretation is somewhat high, then a dip in activity is probable to happen.

Utilizing the likelihood distribution models enables you to develop many trading techniques, even the most familiar use of the standard deviation indicator is to anticipate price reversals based on the concept of reversion to the mean. Retracement to the median is essentially the concept on which oscillators such as the Relative Strength Index are established. It claims that each deviation from the mean should be preceded by a return to the same, so that the general dispersal of prices matches the standard distribution.

Standard deviation is regarded as one of the most trustworthy indicators accessible to traders, but under certain circumstances. In trending conditions where volatility is average and price oscillation is focused throughout the middle of the range, the standard deviation indicator is one of the greatest indicators you will come across. A lot of the techniques hedge fund managers and bank analysts utilize are greatly relied upon standard distribution formations.

For instance, if a currency is fluctuating between 1.2700 and 1.3700 for quite a bit of time, with a lot of the activity bound in the middle of the range, you can trace the pattern by assuming median regression on the foundation of the standard distribution. On the other hand, if prices are clumped at the boarders of the same range, for instance, around 1.3600-1.3700, the prospect distribution of the prices won’t be standing and utilizing the standard deviation indicator for trading while assuming mean regression may be catastrophic.

This is really paramount because it is one of the leading downfalls when trading moving averages in general as well. The mean of prices will be the same in both a formation where prices are focused primarily at the boarders of the range and one where they are centered in the middle. Nevertheless, these two formations follow totally different principles. Thus, you shouldn’t utilize the same mean regression technique focused on a single essential reading of market activity. It is important to first examine the distribution of prices, the range along with the long-term trend in an attempt to operate the standard deviation indicator precisely. I hope you all enjoyed this and found it helpful. Be sure to check out our other articles for even more awesome information. Cheers!

The Accumulation Swing Index and McClellan Indicator

Wednesday, July 30th, 2014

Wednesday, July 30th, 2014 by Sjay Bell

The Accumulation Swing index is a technical indicator that is a distinct form of Welles Wilder’s Swing Index. It sets up a running sum of the swing index reading of each candlestick. The swing index has a reading of 0 to 100 for a bullish bar and 0 to -100 for a bearish. The swing index is reckoned by utilizing the present candlesticks open, high, low and close, along with foregoing candlesticks open and close.

The Accumulative Swing Index is applied to receive a better long-term image rather than employing the basic swing index, which uses data from two candlesticks only. If the long-term trend is bullish, the accumulative swing index will provide a positive reading. However, if the long-term trend is bearish, the accumulative swing index provides a negative interpretation. If the long-term trend is sideways, the accumulative swing index operates in the parameters of positive and negative readings.

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The ASI will provide the trader with numerical price fluctuations that are value quantified, and it will reveal short-term price reversals. The trader can ensure price breakouts by contrasting trend lines on the ASI to trend lines on the price chart. A false breakout is signaled when a trend line plotted on the chart is punctured, but an indistinguishable trend line plotted on the accumulative swing index is not. In closing, this indicator can be used to ensure a speculation in a trend swing.

The McClellan Oscillator, created by Sherman and Marian McClellan, during the late 1960s, computes the contrast between two exponential moving averages by utilizing the gains and reductions from the corresponding day period.

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This could be the most paramount part to grasp. The two Exponential Moving Averages are invariably set to 19 and 39 periods. Generally, they demonstrate 10 and 5% trend values. Well known charting platforms, like Tradestation and others, utilize 19 and 39-day EMAs as the set periods, but a lot of traders will test with other periods in an effort to fine tune their analysis. If a trader utilizes the 19/39 model, the McClellan is a great short-term indicator, expecting positive and negative changes in the rise/decline stats for better market timing.

The McClellan Oscillator utilizes averages and contrast, focused on this info to measure market breadth. If you desire to apply the indicator precisely, the chart must accept both the advancing issues and the declining issues, and the information must identify the right data number for each. Because it utilizes exponential moving averages, the numeric reading of the McClellan Oscillator will rely on the information obtained in the chart. If a security is rallying but more problems are dropping than proceeding, then the rally is limited and a considerable amount of the market is not engaging.

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Just like the MACD, the McClellan Oscillator is too a momentum indicator. If the short-term average elevates over the long-term average, a positive reading is given. Just like many other oscillators, the McClellan Oscillator has revealed an overbought signal if the indicator fluctuates in the positive 70 to 100 range, and it gives an oversold signal in the negative 70 to 100 parameters. Buy signals are provided when the oscillator proceeds from oversold territories to positive territories, and, conversely, sell signals are given by drops from overbought to negative territory. An elevating trend line of troughs and peaks would be a green light signal to the trader while declining tops and bottoms would bring about the bears. In conclusion, these indicators act as verification indicators to traders who have a need to double check our suspicions on a steady base. I hope you all enjoyed this and found it helpful. Be sure to check out our other articles for even more awesome information. Cheers!