The Supreme Diamond binary options indicator is a new tool based on a trend trading strategy . It does not just generate signals , but offers a methodology that can be a good assistant even for beginners. Read our review to find out whether this tool is worth $15 and how its trading signals with an additional filter indicator can help improve the efficiency of your trades.
Content:
- Characteristics;
- Installation;
- Overview and settings;
- Supreme Diamond Trading Rules;
- Specifics of application;
- Conclusion;
- Download Supreme Diamond.
Characteristics of the indicator for binary options Supreme Diamond
- Terminal: MetaTrader 4
- Timeframe: M15
- Expiration: 3 candles
- Option Types: Call/Put
- Indicators: Supreme_Diamond.ex4, Supreme_TrendHisto.ex4
- Trading instruments: currency pairs , commodities, cryptocurrencies , stocks
- Trading hours: 8:00 - 21:00 Moscow time
- Recommended brokers: Quotex , Pocket Option , Deriv , Binarium
Installing the indicator for binary options Supreme Diamond
The Supreme Diamond indicator is installed in the MetaTgader 4 platform as standard. 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 opened directory, you need to go to the “MQL4” folder and then to “Indicators”, then move all the files there. Templates are installed in the same way, but are placed in the “templates” folder. You can read the installation instructions in more detail in our video:
Review and settings of the indicator for binary options Supreme Diamond
The Supreme Diamond indicator has two modes of operation: “Diamond” and “Normal Mode”. They differ in the type of trading signals and their frequency. The kit also includes a trend indicator in the form of a “basement” histogram, which filters false signals against the trend. Let's look at the Supreme Diamond in each mode in more detail.
“Diamond” mode
The parameter “Use Best Entry as diamonds?” is responsible for selecting the operating mode of the indicator for binary options Supreme Diamond: true – “Diamond”, false – “Normal Mode”. In the “Diamond” mode, purple diamonds appear under the candles, indicating potential purchases of Call options, and yellow diamonds appear above the candles, signaling possible purchases of Put options.
“Normal Mode”
In the so-called “normal mode”, the indicator’s appearance becomes very similar to the standard Parabolic SAR of the Metatrader 4 trading platform. In addition to the entry point, indicated by a colored diamond, this indicator forms a line that follows the price bars until they intersect with it. This mode of operation was probably specially designed for Forex traders to help them effectively follow open trades.
When trading binary options, this feature does not play any role, since positions are closed after the expiration time , and not when the price crosses the dynamic line of the indicator. It is also worth noting that in the "Normal Mode" the indicator for binary options Supreme Diamond generates more trading signals than in the "Diamond" mode.
Trend filter
To prevent traders from making trades against the main trend, the developers have implemented a trend filter . Its role is performed by an additional tool - Supreme_TrendHisto, which works regardless of the selected mode of the main indicator. Visually, it looks like a histogram, the purple bars of which indicate an upward trend, and the yellow ones - a downward trend.
As you can see in the screenshot above, the main levels of this oscillator are the 0.065 and 0.7 marks. For signals to buy Call options, the histogram values in the range from 0.065 to 0.7 are taken into account. For Put options, Supreme_TrendHisto should be in the range from -0.065 to -0.7.
Settings
All Supreme Diamond indicator settings are divided into 4 blocks:
- Indicator parameters – are responsible for selecting the time frame, the period for calculating Bollinger Bands and standard deviation, on/off the band correction mode, offset, the type of moving averages for calculating the bands and the price type used in the calculation.
- Select the operating mode – true:”Diamond” – the “basement” histogram is used as a trend filter, false:”Normal Mode” – the filter is not used.
- Activate messages – turn messages on/off, turn sound on/off, select sound, send messages to email.
- Signal display mode – signal display type, signal shape, and their color.
Rules for trading on the indicator for binary options Supreme Diamond
In order to determine the rules of trading on the indicator for binary options Supreme Diamond, you first need to understand how it works and by what principle it generates signals for opening positions. Based on the settings described above, it is easy to see that the "trading recommendations" of this indicator are based on the behavior of the price relative to the Bollinger indicator.
As shown in the figure above, in the "Normal Mode" the Supreme Diamond indicator marks with diamonds the moments of candle closing above or below the Bollinger bands , without taking into account the readings of the "basement" histogram. This is the reason for the large number of signals in this mode.
If you are wondering which trading signals you should trust and which you shouldn't, our website has a selection of articles on this topic:
- Is it worth buying trading signals for binary options?
- Pocket Option Signals
- WinOptionSignals Signals Review
- Profitable signals for binary options
Since the Supreme Diamond indicator signals do not take into account the main trend in the described mode, we cannot recommend it. Our choice is the “Diamond” mode. To activate it, set the logical variable “Use Best Entry as diamonds?” to true.
As a filter for transactions we will use the Supreme_TrendHisto basement histogram with a calculation period of 50.
To buy a Call option, you should wait for the purple diamond to appear under the candle. In this case, the purple columns of the “basement” histogram should be between the levels of 0.065 and 0.7. For the Put option, we wait for the yellow diamond to appear above the candle and, accordingly, the yellow columns of the histogram in the range from -0.065 to -0.7.
Opening a Call Option
- A purple diamond appeared under the candle
- The purple histogram bar is between the 0.065 and 0.7 levels.
- At the opening of a new candle we buy Call
Opening a Put Option
- A yellow diamond appeared above the candle
- The yellow histogram bar is between levels -0.065 to -0.7
- At the opening of a new candle we buy Put
It is recommended to select the expiration time of 3 candles. Select the holding period of positions depending on the financial instrument and the results of testing on historical data.
Specifics of using the indicator for binary options Supreme Diamond
Try to trade on the signals of the indicator for binary options Supreme Diamond during active market hours. If possible, avoid flat , which can be determined by the position of the color histogram relative to the key levels. If the histogram values do not go beyond the limits from -0.065 to 0.065 - the market is flat, and it is not recommended to open transactions on this currency pair or cryptocurrency .
To reduce the percentage of losing trades, it is not recommended to use this indicator on timeframes below M15.
Pros of the Supreme Diamond indicator
The advantage of this indicator is that its signals are based on the trend trading strategy. This is especially important for beginners in the binary options market. An additional filter indicator will help you not to open trades against the main trend. At the same time, Supreme Diamond provides signals for buying Call and Put options with alerts, which helps you not to miss trades. If someone thinks that the number of trades in the "Diamond" mode is not enough, you can always switch to "Normal Mode". However, in this case, you will have to filter all the signals yourself, using various trend indicators .
Cons of the Supreme Diamond indicator
A disadvantage is the lack of the ability to configure the parameters of the Bollinger bands, which are used to generate signals for this indicator in the "Diamond" mode. These are actually preset settings chosen by the developer as optimal. The user does not have the ability to change them in this mode.
Conclusion
The Supreme Diamond binary options indicator is an interesting tool for beginner traders. Its signals are based on a trend strategy, which helps not to trade against the main trend. The histogram filter will be an additional advantage, allowing you to cut off unpromising transactions.
However, it is important to note that Supreme Diamond is not a "magic pill" for success in the binary options market. Its capabilities are limited, and the price of $15 is unreasonable due to the lack of parameter settings in the "Diamond" mode and the presence of free analogues, such as the "Bollinger Bands" indicator, whose parameters can be adjusted without restrictions.
Before using this tool in real trading, we recommend testing its work on a demo account with a broker with a minimum deposit . Do not forget about the rules of risk and capital management, which are the key to successful trading. We wish everyone a favorable trend!
Download Binary Options Indicator Supreme Diamond
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