Trade buy and sell binary options indicator
They simply tell you in which direction you should be trading. When using the indicators for trade signals, look for confirmation. If the one indicator moves from positive to negative, indicating a sell, the signal is stronger if the other indicator is already negative or also crossing into negative territory. When an indicator crosses from negative to positive, indicating a buy, the signal is stronger if the other indicator is already positive or also crossing into positive territory.
They show you which side of the market is most favorable for extracting a profit—the long side or the short side. Finding an entry and exit, as well as controlling risk is up to you. The indicator does provide the occasional trade signal when one of the indicators flips from positive to negative, or vice versa. Ideally use the indicators in combination, as signals are more powerful when both indicators confirm each other. Current price — Open price The Open Price Indicator OPI is a simple calculation that lets you know whether buyers or sellers are stronger during the day.
If the Current price is above the open price positive OPI , the buyers have the advantage. If the Current price is below the open price negative OPI , the sellers have the advantage. The OPI acts as a filter. It lets you know in which direction you should be taking trades.
Current price — Prior Close price The Net Price Indicator NPI is another simple calculation which shows whether buyers or sellers are in control from one day to the next. During a downtrend you want to see the price continually reach below to confirm that the downtrend has strength.
If the price stops reaching or below, then it signals that the downtrend is losing strength and an upward reversal may be coming. During an uptrend you want to see the indicator move above on a regular basis.
In the middle example, the indicator moves from oversold to overbought price is in a small range but when the indictor moves back down it barely gets higher than prior indicator lows , showing some underlying strength.
This warned that the price could pop higher, which it did. On the right we have a strong uptrend and indicator remains overbought for some time. It then falls below and on the rally back just barely makes it to This high on the indicator was significantly lower than the prior highs, indicating the trend had lost some steam. From there the price drifted lower. Rather use the indicator for confirming other analysis you are doing and to spot underlying weakness or strength.
Adjust the parameters of the indicator, such as giving it a shorter or longer look back period, to align it with your strategies and analysis methods. If you do decide to use the indicator for trade signals, use it during trends and when price is moving strongly.
You may also opt to use slightly different levels, or techniques for entering and exiting trades than the standard applications mentioned above. Trading Applications One way to use the indicator is to watch for overbought levels and then a move back below the mid-line