Arrow indicators simplify the trading process in the case of binary options , which is used by many market participants. The main advantage of such indicators is that there is no need to study quotes in detail in order to open a trade deal. You just need to watch for when an arrow appears directed in one direction or another, which serves as a signal to buy an option in accordance with the choice made.
There are a sufficient number of arrow indicators for binary options , but Forex MT4 Binary is more popular. In this regard, let us dwell on the nuances of the practice of its application.
Instructions for installing indicators in MetaTrader 4 :
How does the Forex MT4 Binary arrow indicator work?
The functioning of the proposed indicator is based on a complex algorithm, the implementation of which involves addressing a significant number of factors, for example, the strength of the trend and the essence of how candlestick patterns are formed are taken into account. The use of this tool allows you to identify with extreme accuracy turning points where trends (local, global) change.
In situations where there is confirmation regarding the end of an upward trend, which correlates with the likelihood of prices falling in the near future, the indicator provides appropriate signals for binary options . An arrow pointing down is drawn on the quote chart , and a red peak is drawn in the indicator window, occupying a position above the zero level.
If the downward trend manifests itself for a long time, and there are factors confirming that it is ending, then in the indicator window you can see a blue peak, which is located below the zero level. In this case, an upward arrow appears on the chart.
Attention! The peaks that can be seen in the indicator window are not always blue or red. There are also gray versions of this graphic display. They should be ignored when entering the market, since these signals do not have acceptable reliability, which is confirmed by feedback from traders. Transactions on them are mostly unprofitable.
Instant signal about the entry point
The effectiveness of using Forex MT4 Binary is associated not only with the ease of use of this indicator, but also with such a point as timely notification of the occurrence of signals to enter the market, which is based on several methods.
The first signal of the indicator is the appearance of an arrow on the chart. If it points down, this serves as a warning of the likelihood of a bearish trend starting. There is only one piece of advice here – buying PUT binary options. Otherwise, when an upward arrow is formed, the expected event is an upward movement, which implies the opening of a CALL trade.
In this case, it is possible to configure the indicator in such a way that it will issue alerts accompanied by sound signals. Although resorting to this method forces you to keep the MT4 terminal constantly running if the trader does not want to miss this type of signals.
In order not to spend endless time in front of a PC monitor, you can turn to another notification method based on the use of email. The convenience of this approach lies in the fact that information about entry points will be carried out through messages sent by email. They can be read not only using a computer, but also a mobile device - a smartphone or tablet.
Selecting an interval and currency pair
The use of the indicator does not depend on the specific time frame and financial asset. Any option is suitable, but with one exception. This analytics tool has a disadvantage that is also present in other technical indicators. The higher the timeframe, the higher the reliability of the signals generated by the indicator. For example, choosing H4 allows you to close 8 out of 10 trades in profit. At the same time, M1, M5 and other small time frames lead to a decrease in profitability to 60–70%.
The presence of such a problem has nothing to do with the operation of the indicator algorithm. Everything is fine here. Interference is created by price noise that occurs at time intervals of short duration. Price fluctuations of an inexplicable nature lead to the indicator producing incorrect forecasts, and this contributes to closing the majority of transactions with a loss.
Use the indicator on medium and long time frames. The number of transactions in this case will be reduced (to 1-2 per day in relation to a specific currency pair), but the probability of profit will increase significantly.
Risk management rules when trading with Forex MT4 Binary
In order for trading to be profitable when using the indicator in question, you must follow certain rules:
- Pay attention exclusively to signals that suggest opening trades in the direction of the trend. Here we can give an example of a daily chart and a four-hour chart, when the selected currency pair begins to show not just a sharp rise, but a long one, which should lead to the search for an entry point in accordance with a long position when setting time frames of shorter duration. As for binary options signals that cause trades to be opened against the trend, they should be ignored.
- The effectiveness of Forex MT4 Binary is a fact confirmed by many professional traders, but the use of this indicator does not exclude the possibility of false signals following one another. In this regard, you should not exceed 2% of your deposit amount when placing a bet. This reduces the likelihood of losing a significant portion of the funds used.
- You should not consider the moment before the immediate publication of news from the perspective of a suitable time for trading. For example, a meeting of Fed members is scheduled for 18:00, at which the interest rate is expected to be announced. In this situation, trading in dollar pairs should already be stopped at 15:00.
The explanation in this case lies in the volatility of the market, which begins to manifest itself even before the relevant news is announced. As a result, currency pairs begin to show excessive activity and the number of price noises increases, which leads to the appearance of erroneous signals that contribute to the loss of the deposit.
Download Forex MT4 Binary indicator
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See also:
TOP 5 trader mistakes when trading binary options
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