The Breakout Zones binary options indicator belongs to the category of reliable tools that can clearly indicate the current trend direction. It identifies breakout zones and signals the best moment to take a trade.
This tool automatically displays support and resistance lines on the price chart. Designed to determine the range of price fluctuations, it easily recognizes bullish and bearish trends, which is the key to successful trading in the binary options and Forex markets. The developers are asking $97 for this indicator. We'll figure it out in this review whether it's worth the money, but in the meantime you can download Breakout Zones from our website for evaluation purposes completely free of charge.
Content:
- Characteristics
- Installation
- Overview and Settings
- Trading rules for Breakout Zones
- Buying a Call Option
- Buying a Put option
- Conclusion
- Download Breakout Zones
Characteristics Of The Binary Options Breakout Zones Indicator
- Terminal: MetaTrader 4;
- Timeframe: H1;
- Expiration: 2 candles;
- Option types: Call/Put;
- Indicators: breakout-zones.ex4;
- Trading instruments: currency pairs, commodities, cryptocurrencies, stocks;
- Trading time: European and American trading sessions;
- Recommended brokers: Quotex, Pocket Option, Deriv, Binarium .
Installing The Binary Options Breakout Zones Indicator
The Breakout Zones indicator is installed as standard in the MetaTrader 4 platform. To do this, you need to add it to the root folder of the terminal by selecting “File” in MT4 and then “Open data directory”. In the directory that opens, you need to go to the “MQL4” folder and then to “Indicators”, and then move all the files there. Templates are installed in exactly the same way, but are placed in the “templates” folder. For more detailed installation instructions, see our video:
Overview and Settings Of The Breakout Zones Indicator For Binary Options
The main idea of the indicator for binary options Breakout Zones is to determine the location of the price relative to the support and resistance levels formed by it. If prices manage to break above the resistance line, this indicates the beginning of a bullish trend, while breaking through support signals the start of a bearish market. This allows traders to make informed decisions about opening trades, as well as adjust current positions in accordance with the location of prices relative to support and resistance levels.
As you can see on the slide, after the candle closes above the resistance level, a unidirectional, recoilless growth of quotes usually occurs. On the other hand, once prices manage to break below support (as indicated by a candle closing below that level), they literally collapse, indicating the start of a bearish trend.
This graphical analysis tool has few settings and they consist of only three variables:
- Local Time Zone – local UTC time zone;
- Dest Time Zone – time zone for starting drawing of range boundaries;
- Pips for Entry – adjustment of range boundaries.
What makes the Breakout indicator especially valuable is its ability to detect significant changes in price behavior. The breakout zones it defines often indicate the start of a new trend or a significant price change. This opens up opportunities to trade breakouts. Its essence comes down to entering into a transaction immediately after the rate of the currency pair goes beyond the previously established range. On our website you can also familiarize yourself with other impulse indicators for binary options.
To increase the percentage of profitable trades, we recommend using one of the trend indicators and opening positions on a breakthrough of the channel boundaries in its direction. In this case, your transactions will be closed with profit more often.
The Breakout Zones indicator is suitable for both beginners and experienced traders. The former can use it to recognize market trends, develop simple trading strategies and forecast exchange rate movements. In turn, experienced traders can use this tool to develop more advanced approaches based on price breakouts from support and resistance zones.
Trading Rules For Binary Options Breakout Zones
The Breakout Zones binary options indicator gives quite a lot of accurate signals and is a valuable tool. It provides the trader with all the necessary information and analytical data for successful trading in the financial markets.
In order to better understand the rules of trend trading, we recommend that you familiarize yourself with a selection of articles specifically devoted to this topic:
- How does a trend work in markets?
- Identifying and using bullish and bearish trends.
- Market phase changes.
- How to determine a flat in the market?
Trading rules using the Breakout Zones binary options indicator for buying Call:
- The trend is upward.
- The candle closed above the upper limit of the range.
- At the opening of a new candle, we buy a Call option.
To make money by depreciating the exchange rate and buying Put, we wait for the following conditions to be met:
- The trend is downward.
- The candle closed below the lower limit of the range.
- At the opening of a new candle, we buy a Put option.
Any timeframe can be used. Recommended expiration time is 2 candles.
Buying a Call Option
The candle closed above the upper limit of the price corridor, which indicates the emergence of a new impulse for growth. At the opening of a new candle, open a Call.
Buying a Put option
The candle closed below the lower border of the price corridor, which indicates the emergence of a new downward impulse. At the opening of a new candle, open Put.
Conclusion
Analyzing price behavior during a price level breakout is a critical point. To distinguish genuine breakout signals from market noise, you should carefully study the volume, speed and reaction of the market to new price movements. This will help you make informed decisions in binary options trading and reduce the likelihood of losses.
Considering the fairly accurate signals given by this indicator, its cost can be considered quite reasonable. At the same time, despite the fact that the Breakout Zones indicator is a powerful tool for technical analysis, obtaining sustainable results with its help will require an integrated approach. It includes not only the analysis of support and resistance levels, but also careful observation of price behavior. This will allow binary options traders to make informed decisions and achieve the desired results.
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