London Bridge indicator for binary options: free download, review, reviews

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London Bridge

The London Bridge binary options indicator clearly identifies overbought and oversold zones from which transactions should be made. It is based on a dynamic approach to determining the level of volatility of the traded instrument.

London Bridge can be equally successfully used in Forex and binary options trading. Its official version costs $64.95. However, before purchasing this indicator, you can understand in detail the logic of this tool by downloading it for free from our website for informational purposes.

Using the London Bridge Basement Oscillator in trading does not require any experience and can be used by traders of any skill level. This circumstance makes it very attractive for beginners.

Content:

London Bridge chart

Characteristics of the indicator for binary options London Bridge

Terminal: MetaTrader 4 ;
Timeframe: M30;
Expiration: 3-5 candles depending on the instrument;
Option types: Call/Put;
Indicators: London Bridge.ex4;
Trading instruments: currency pairs , commodities, cryptocurrencies , stocks;
Trading time: 8:00-20:00 Moscow time;
Recommended brokers: Quotex , Pocket Option , Deriv , Binarium .

Installing the indicator for binary options London Bridge

The London Bridge indicator is installed as standard in the MetaTrader 4 terminal. 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 drag the indicator file there. Templates are installed in exactly the same way, but are placed in the “templates” folder. For more detailed instructions on installing indicators, see our video:

Review and settings of the London Bridge binary options indicator

London Bridge belongs to the category of “basement” oscillators located under the chart of the analyzed financial instrument. It forms three signal lines: Bridge, BB, BB avg.

Bridge – the red line of the indicator itself;
BB – white dotted line of the boundaries of the Bollinger indicator, built based on the Bridge values;
BB avg is a moving average of the Bollinger indicator, built using Bridge values.

London Bridge basement signals

The position of the Bridge line relative to the blue moving average determines the trend in the analyzed instrument:

If Bridge is above the blue moving average (BB avg), the market is trending upward;
If Bridge is below the blue moving average (BB avg), the market is trending down.

When trading binary options, it is not necessary to use the blue moving average line. We are much more interested in the value of the London Bridge indicator (red line) and its position relative to the Bollinger Bands and horizontal levels marked in purple on the chart.

signals above London Bridge levels

London Bridge indicator values below the -6 level (determined empirically) and below the lower Bollinger band (white dotted line) signal that the market is very oversold and binary options traders should buy Call options. In the opposite situation – the Bridge line is above level 6 and above the upper Bollinger band – you should buy Put binary options.

Below are the input parameters of the London Bridge indicator. Traditionally, they are divided into several blocks:

Signal – periods and methods for calculating indicators are specified;
Auxiliary – sets the upper and lower threshold levels;
Service – activation of various alerts.

settings in London Bridge

You can leave the default settings. They are optimized for trading binary options on time frames H30-H1.

Trading rules using the London Bridge binary options indicator

The signals generated by the London Bridge indicator can be divided into two categories - a trend filter and the opening of Call and Put options when the signal line reaches predetermined levels.

Based on this, the London Bridge basement oscillator will fit well into a binary options trading strategy for bullish and bearish trends. You can learn in detail about how to correctly identify trends in financial markets and get the maximum benefit from this to accelerate your deposit , from the selection of articles on our website:

To increase the number of profitable transactions in binary options trading, try to use London Bridge oscillator signals along the trend determined using technical analysis tools. In this case, the probability of positive transactions will be maximum. In fact, you will buy Call options and Put options following the trend after the price correction is completed, which the red Bridge signal line will promptly warn you about.

For example, to determine the trend, add a moving average to the chart with a calculation period of 100 candles (SMA100). If the price of the instrument being traded is below this moving average, we will open only PUT options based on London Bridge signals. And vice versa - if the price of your asset confidently stays above the moving average (which we chose as a filter), then we wait for a signal from the strategy only to open Call options.

moving average in London Bridge

An additional way to improve signal reliability is to expand the range between the levelOb and levelOs auxiliary lines, shown as horizontal purple lines. By default it is from -6 to +6. If it is expanded to [-12; +12] – the number of transactions will be reduced, but they will be more reliable. In any case, it is necessary to test this condition on history and select the optimal parameters based on the volatility of a particular asset.

Opening a Call Option

On the previous candle, the red Bridge line dropped below levelOs (-6). On the current candle, the same line crossed the lower Bollinger band, marked with a white dotted line, in the opposite direction from bottom to top. At the opening of a new time interval, we buy a Call option.

Opening a Put option

On the previous candle, the red Bridge line rose above levelOb (+6). On the current candle, the same line crossed the upper Bollinger limit, marked with a white dotted line, in the opposite direction from top to bottom. At the opening of a new time interval, we buy a Put option.

signal to buy put option

Conclusion

The London Bridge indicator will be a good assistant in trend-following binary options trading. Its accurate signals will be appreciated by both novice traders and their more experienced colleagues. This oscillator shows its best results on timeframes from M30 and higher, but there will certainly be fans of high-speed transactions who can successfully adapt it for scalping on binary options .

Before using this indicator in real trading, we strongly advise you to test its signals on a demo account . Only after you are completely familiar with the new system can you move on to trading with trusted brokers , strictly following the rules of risk management and money management .