Options indicator

Options trading is a kind of know-how that appeared quite recently. As you understand, anything new is most often a continuation or improvement of something old.

Trading binary options is very similar to trading on the forex market or the stock exchange, because it is based on the price of the asset, which is constant regardless of which exchange you trade on.

But, unfortunately, many beginners, deceived by advertising, very often treat options as an ordinary game of guessing higher or lower and do not even suspect that the options themselves can bring money only in the hands of a professional.

Almost everyone who begins to delve into the topic of options is faced with the problem of using one or another instrument to enter the market. It so happens that the vast majority of brokers do not provide a modern trading platform, and a beginner, as a rule, sees a bare chart and two buttons above or below.

That is why, as if by the law of meanness, almost everyone who deals with options loses their money, because all trading comes down to one’s own intuition, which usually fails sooner or later. Actually, a completely logical question arises: where can I get effective tools, even if the broker does not provide them?

How to use indicators when trading options

As already mentioned, the Forex market is practically no different from options trading, and the only difference is that the option has an expiration date, after which you make a profit or loss.

Also, do not forget that, unlike the Forex market, you do not need to place stop orders and do various routine work with order management, because the stop order has already been placed by the broker in case you make a mistake in the direction.

In fact, this is the whole difference, which means that the principle of operation and signals for entering the market remains unchanged, therefore all technical analysis tools that are used in the Forex market can be quite effective when trading options.  

Algorithm of actions

So, since prices and chart movements are almost the same in the Forex market and when trading options from the broker’s platform, we can easily carry out our analysis in the MT4 trading platform, and open transactions directly on the broker’s website. To do this, select a Forex broker from the list http://time-forex.com/spisok-brokerov and download the MT4 trading platform. The next step is to select the same currency pair both in MT4 and on the options broker's website.

To select an indicator for options, go to the indicators section in MT4 and plot it on the chart. In addition to standard indicators in MT4, you can install more advanced ones, which you can download in the “Indicators” section of our website. For example, let's plot the Reality Vigor Index indicator on the chart.

There is nothing complicated in its application; if the green line crosses the red line from bottom to top, then we buy an option to increase, and if on the contrary, then an option to decrease.

For example, we received a buy signal from the Reality Vigor Index indicator in the MT4 trading platform.

Next, go to the broker’s page and select the option above. Since the signal was received on a minute chart, the expiration time was set to 1 minute.

Next, we wait for the option to expire and get our result:

To summarize, we can say that any indicator in the MT4 trading platform can be freely used for options trading.

The only thing that is required of you is knowledge of the meanings of indicator signals and a lightning-fast reaction, which is necessary to open positions on the broker’s page after you have received a signal in MT4.

Yes, it should be noted that not all brokers allow you to trade options; those who have a similar tool can be found at the link http://time-forex.com/brokery-opcyonov