The indicator for binary options Trend Direction is designed to determine trend and flat areas on the chart of a financial instrument . It can be used as a signal filter for opening trades following a trend, and as an independent technical analysis tool.
A developed system of built-in alerts will not allow a trader to miss a signal to open a transaction, and the reliable oscillator underlying it will warn against trading in a flat. However, the developers keep its name secret and ask $37 for their development. In this review, we will find out whether this tool is worth the money and on what principle it works.
There is no doubt that it can be equally successfully used in Forex trading and the binary options market. You don't need any experience to use it. And this circumstance makes Trend Direction very attractive for beginners, who can download it from our website for evaluation purposes absolutely free.
Content:
- Characteristics
- Installation
- Overview and Settings
- Trading Rules for Trend Direction
- Opening a Call Option
- Opening a Put option
- Conclusion
- Download Trend Direction
Characteristics of the indicator for binary options Trend Direction
● Terminal: MetaTrader 4 ;
● Timeframe: M15;
● Expiration: 3 candles;
● Types of options: Call/Put;
● Indicators: Trend Direction.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 Trend Direction
The Trend Direction 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:
Review and settings of the indicator for binary options Trend Direction
The indicator for binary options Trend Direction belongs to the classic “basement” oscillators located under the chart of a trading instrument. With its help, it is very easy to visually identify flat zones and areas of unidirectional price changes - a trend.
As can be seen on the previous slide, the flat zone is highlighted in light gray (Flat), while the downtrend is highlighted by bars of red and dark red (Trend Down), and the uptrend is highlighted in blue (Trend UP). Everything is simple and very clear. Beginners will definitely appreciate it.
The parameters of this trader assistant consist of three main blocks:
- Basic settings;
- Visualization;
- Notifications (alerts).
Basic indicator settings for binary options consist of the following parameters:
- Bars Count – the number of candles (bars) on which the indicator readings are displayed;
- Period – selection of the oscillator calculation period;
- Start Flat After Bar - the number of candles (bars) skipped after the end of the trend, before drawing the flat.
In the visualization block, the user can customize the color scheme and appearance of the oscillator:
- Color – contains 4 color palettes: automatic (Auto), on a black background (On Black), on a white background (On White) and manual setting (Manual), when selected, the color setting of each element is activated;
- Floor Color – if you select the “Manual” mode for Color, sets the colors of areas of flat, trend, price growth and decline;
- Histo Width (0 - Auto) – select the thickness of the histogram (if you set this parameter to 0, the width will be selected automatically).
The alert settings in this indicator are very diverse and will certainly appeal to many traders:
- Alert allows you to enable (On) and disable (Off) messages, as well as set their display modes: only for buy signals (Only UP) and vice versa - only for sell signals (Only DN);
- Alert Work Time – sets the message schedule by hour and minute (default is 00:00 – 23:59);
- Alert Pop Up – turns on/off the pop-up window;
- Alert Push – enable/disable Push notification;
- Alert E-mail – on/off. email notification;
- Alert Sound – on/off. sound notification;
- Alert Sound Name – select a sound alert file.
The signal to open transactions in the Trend Direction is a change in color (bars), which indicates a change in the exchange rate dynamics of the analyzed financial instrument. Bars colored dark gray indicate a trend, while light gray bars indicate a flat. As long as the market phase (trend or flat) does not change, the color of the vertical segments will also retain its color.
Trading rules using the indicator for binary options Trend Direction
The indicator for binary options Trend Direction gives quite a lot of accurate signals in conditions of stable unidirectional price movement of the traded instrument. In fact, it is not only capable of playing the role of a trend classifier, confidently separating areas of exchange rate growth and decline from trading in the range, but also generates a large number of signals for opening positions to buy (Call) and sell (Put).
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?
To make trades using the signals from the Trend Direction binary options indicator, you will not need to use any additional filters. Everything you need for trading is already included in this analytical tool.
To make money on falling prices, you need to wait until the color of the vertical segments in the center of the oscillator changes from light gray to dark gray and a red bar appears. At the opening of the next time interval, open the Put option.
To make money on growth, we act in the same way - we wait for a trend to emerge after a flat, as evidenced by the change in the color of the segments in the middle of the oscillator from light gray to dark gray and wait for a blue bar to appear. Then, at the opening of a new candle, we buy a Call.
Recommended expiration time is 3 candles. However, for a specific currency pair, the expiration time should be selected based on the results of backtesting and the timeframe used.
In order to increase the percentage of profitable trades, oscillator signals can be further filtered using various techniques and methods of technical analysis and pattern indicators for MetaTrader 4 .
Opening a Call Option
The color of the bars in the middle of the oscillator changed from light gray to dark gray (a trend has begun). A blue bar has appeared, which indicates the emergence of a price impulse for growth. At the opening of a new candle, open a Call.
Opening a Put option
The color of the bars in the middle of the oscillator changed from light gray to dark gray (a trend has begun). A red bar has appeared, which indicates the emergence of a downward price impulse. At the opening of a new candle, open Put.
Conclusion
The Trend Direction binary options indicator is a universal and multi-level technical analysis tool that can complement any trading system. It will be appreciated not only by fans of turbo options and quick trades, but also by intraday Forex market traders who hold positions from several minutes to several hours.
In general, this development is worth the little money and is capable of generating quite a lot of effective signals that do not require additional filtering by various methods. However, for some currency pairs, signal filtering may still be necessary. Be sure to check the effectiveness of entry points and their profitability using historical data for a particular financial instrument.
General recommendation - when using this analytical tool in binary options trading, try to avoid price consolidations and flat areas of the market. Start with a demo account with a trusted broker , applying all the rules of risk management and money management . And only after receiving a positive result on virtual money, proceed to trading on a real account. We wish everyone a favorable trend!
Download binary options indicator Trend Direction
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See also:
How to make money on binary options
How do binary options brokers make money?
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