The Most Effective Indicators for Trading

At the moment the market trading asset can be predicted through an innumerable number of technical indicators. With their help even a beginner trader can get a signal about change of situation on the market, and open a deal at the right time. However, not all indicators are equally effective, or rather, not all are suitable for use in the futures market.

What are indicators

So, it is nothing but a mathematical program that works on the evaluation of the market over a certain time interval. That is, it is not an artificial intelligence, from which one should expect miracles, but an ordinary arithmetic formula, looped and automated in a program. Each indicator has a certain pattern embedded in its work, which it calculates from the previous and current market indicators.

What are the indicators

All indicators are classified into lagging and leading indicators according to their principle of operation. As a rule, all trend analysis tools are lagging ones, and most of the leading ones are oscillators. And the point here is not that the lagging ones work badly, and the leading ones work well – both give excellent results if approached correctly. The point is simply in the mechanism of their work and the way they evaluate market data. Let’s look at each type of indicator.

Leading indicators

To this class of indicators, as stated, can be attributed almost all oscillators, which are based on RSI, Stochastic or CCI. Each oscillator has its own window on the chart with a scale and moving muwings, which move relative to certain levels. In their work such indicators take into account two states of the market – when it is overbought and when it is oversold.

• Stochastic – is the most famous oscillator, which became the basis for the creation of its many varieties. It is best used in a sideways market, where it will demonstrate moments of its break in the form of a reversal of its muvings on the extreme zone – such zones are marked by the corresponding levels (80 and 20). Let’s consider strategies using Stochastic:
• Cryptocurrency Trading Strategy by Stochastic for 60 Seconds
• Precise strategy “Stochastic Trend”
• Fisher Stochastic Strategy
• DRAKE DELAY STOCHASTIC strategy

• RSI – this oscillator has a similar working principle to the Stochastic and differs only in the format of display and sensitivity to certain market situations. It also has levels of 80 and 20, but only one muving moving on a scale between them. Strategies using RSI:
• RSI Strategies for Binary Options
• Trade Strategy “Scalping on RSI”
• The “RSI Divergence” Strategy
• Fractal Trading Strategy with RSI Filter

• CCI – this indicator also differs in appearance and the presence of additional marks, which in certain situations can tell the trader additional information about the strength and speed of the market. It has levels 100 and -100 and one muving.
• Trading Strategy by CCI Indicator
• Extreme CCI Binary System Trading Strategy

• Wonderful oscillator (Awesome Oscillator) – this tool is also leading, but is displayed as a histogram. The signals form the columns of the histogram – their color, volume and location relative to the centerline.
• Binary Options “Sunset” Strategy
• Trading strategy for Binomo “Slice”.

Each of these leading oscillators differs in efficiency under certain market conditions and in combinations with other means of analysis. To let you see how these leading oscillators look like, let’s use the platform Binomo (bonus 100% to deposit by promo code REVIEWEEK100 – Activate):

Indicators of lagging type

These indicators build their signals on the historical indicators of the market of a certain period of time. Certainly, they work slower than oscillators, but due to this principle of work with their help it is possible to determine the moment of a new trend emergence.

The most popular today are:

• The moving average in different types (SMA, EMA, WMA, TMA, etc.) – trend, shows the deviation of the value from the average value.
• Moving Averages Strategy for Binary Options “Differential”
• “Moving Average – an effective and simple trading strategy
• Binary Options Strategy – “two Moving Averages”
• “3 moving averages” – binary trading strategy
• Trading by Moving Average Arnaud Legu
• A detailed overview of all types of slips and work at FinMax broker on the website InvestMagnates.com

• Bollinger Waves – volatility, works well in a sideways market. It is also applicable to the trend market.
• Trading on the Bollinger Band
• The Strategy for Binary Options “Effective Bollinger”
• The Best Strategy for Binary Options “Super Bollinger”
• Bollinger Waves in Binary Options” Trading Tactic

• Parabolic SAR – trend, works on a similar with MA principle.
• Trading Cryptocurrency on Parabolic SAR
• Strategy Based on Parabolic SAR and RSI Indicators
• Trading on Binomo by ADX and Parabolic SAR

• Ishimoku cloud – trending and is itself a trading strategy with multiple approaches, generates breakout signals. Also applicable to a sideways market.
• Ishimoku cloud – how to use the strategy
• Binary Options Strategy “Options Ishimoku”

• Fractals indicator – trend, shows a panorama of the market movement, shows even minor changes in the value. It is also applicable to the flat.
• Trading in Binomo by Fractal Indicator
• Fractal Trading Strategy with RSI Filter
• Fractal and McDi Breakthrough Trading Strategy

• MACD – trend oscillator, it filters out noise, demonstrates the strength of the market and its breaking points. It also works on sideways.
• “Turbo MACD” – a profitable system for binary options
• Strategy “MACD Correction”
• Strategy for Binary Options “MACD Divergence”
• Trading by MACD with Fast RSI

• Momentum – trend, demonstrates changes in the rate of price fluctuations.
• A detailed overview and strategy on InvestMagnates.com

• ADX – trend, demonstrates the intensity of the trend and future potential.
• A detailed overview and strategy on InvestMagnates.com

• ATR – trend, displays the level of volatility.
• A detailed overview and strategy of the broker Olimp Trade online InvestMagnates.com

• Alligator – trend, shows the exit of the price from the consolidation and the beginning of a new active movement.
• Cryptocurrency Strategy with Alligator
• Alligator for Binary Options – the Trading System “Krupp
• Alligator strategy – binary options for beginners
• Alligator + MACD = Alligator Strategy for Binary Options

Using these indicators, you can create all kinds of trading strategies on the chart, so all you need to do is to study the features of each technical means, or find a ready-made strategy with a combination of the above mentioned indicators.