Best Binary Options Indicators AKA my Prelude to ICHI MOKU Part two
OK I am back with the second part of my best binary options indicators series. This is part two and if you have not done so already make sure to check out the earlier chapter where I covered some examples of reading the trends via various line studies plotted on the charts. I know I call this series the best binary options indicators but what I hope to really share here is the similarities between all the indicators and yes to shamelessly share some of what I personally believe to be the best indicators In my opinion. As I view indicators the best only means the indicator that I can get a consistent fast objective interpretation of what is happening in the markets from.
The human brain ( I know what you are saying ) here he goes with the existential stuff again. Did you really think you would get through a trading tutorial without me bringing it up? if so, you really don't know me well enough yet. ANYWAY, our brains work on a left / right logical vs creative side. Logic in my mind is something very objective and creative might be more subjective so to this end I use indicators & Fundamental analysis to help me be objective as I endeavor to interpret what I am seeing in the markets and I use Price action and how it responds to indicators plotted on that top chart to be subjective in my interpretations. I am trying to connect this left and right side brain mentality and create a synergy that will elevate my performance in Binary options trading and I hope to share that mind set with you the reader.
So lets get right to it and see if I can make this part of the best indicators very short and sweet. I am going to pop up some charts and rap with you about oscillators and Jerry Seinfeld. OK, You say what do these two topics have to do with each other? well, Initially when I watched Seinfeld and it showed on primetime TV I would have given the show a thumbs down big time!
1. There were no endearing characters
2. Plots were just about whatever obscure day they had and Titles
began with the ____ every episode GRRR. You have to understand
that I am also a published songwriter and sadly so anal retentive I notice
these things.
3. Theme song was just wacky and annoying
4. Seinfelds very voice annoyed me
So I would have given the show a decidedly HUGE thumbs down. Now lets look at a chart and I want you to focus on the oscillator and remember how I just described my sentiments about the Seinfeld show during it's original prime time TV run.
Chart Notes: OK this is just a 5 minute chart with the Aroon oscillator in the bottom window. Try and think about how I just mentioned I felt about Seinfeld during his prime time run. You see how this and every other indicator like it can help you be objective because it is decidedly down here but if you look closer you will notice some even deeper valleys around the end. The more Seinfeld was shown to me the stronger my convictions to not like that show.
Similarly on the price chart up top you can see the market mirroring this Aroon indicator that is showing you the direction of price based on TIME.
OK now lets take a little break and cover some conventional trading theory. There is a core belief that no matter how Bullish ( strongly inclined to rise in price ) or Bearish ( Strongly inclined to decrease in price ) a market is eventually this market's price will drift back around the center. On all these oscillators you will see what is known as the zero line ( that center section ). There is an episode of Seinfeld season 5 Episode 22 entitled " The Opposite " and during this episode Jerry Seinfeld is quick to point out that regardless of the extremes surrounding him " it will all even out ". You can see a sideways trading market and the zero line reflected on the aroon oscillator in this chart here.
When you look at pivot points on a chart the so called central Pivot is the same as the zero Line on an oscillator. Now if you love Murrey math lines then the 4/8 line is similar in theory to the central pivot. That means trading theory works like if we are above ( Central Pivot or 4/8 ) the market is bullish or below that line and conventional trading theory says the market is Bearish. So you see when you can get the fundamentals of how the indicators are used it is easy to learn new ones and find the best binary options indicators for your style of trading. Lets look at some charts with some Murrey Math Lines & pivot points on them now and you can see it is the same fundamental theory of the market oscillating above the Zero line so it is Bullish.
OK by now I hope you are able to wrap your mind around the idea that the indicators are not nearly as complex or sophisticated as some would have you believe. Like I often say your binary options or any other trading can be as hard or as easy as you decide to make it. Here is that same chart with GBPUSD trending down on it but this time I got 2 Oscillators
Stochastics: To indicate price value
Aroon: To indicate price direction based on time
You can use them together and see the confluence very objectively and then look at that Doji ( star like candle with a wick on the top and bottom ) for price action subjectively. 
OK now although there are more indicators here you can see where they just all mirror each other. Lets connect that Left and Right side or Objective and subjective interpretation. The Aroon is indicating price direction based on time BUT the Stochastics is indicating price based on value ( oversold and overbought etc ). Look closely at stochastics on the left as it is indicating a very oversold strong down trend but on the price chart up top while the trend agrees the candle sizes are not so pronounced. Now look closely at Stochastics on the right side of the chart as the sell off comes out of a consolidated state and resumes. See how Stochastics is once again indicating highly aggressive selling but this time price action on the chart is showing you there are dynamic traders in the market pushing the price down hard by selling as well as the sad phenomena of retail traders likely throwing in the towel and managing to sell their positions at the bottom if that little doji pinbar looking candle means anything LOL.
Finally I come to my last chart of the day. Where around 20 years later I look at seinfeld and just like the markets I some how got to the point where I did not mind watching Jerry Seinfeld ( Zero Line ) and crossed over into actually liking the show ( trending up ).
NOTE: Again the markets are just made up of human beings like you and me who are alive and searching for profits.
NOTE: Again the markets are just made up of human beings like you and me who are alive and searching for profits.
OK that is all I have for this installment of the best binary options indicators and next time I will finish this little series off by covering Ichi Moku a Japanese trading indicator often found to be confusing by most people outside the land of the rising sun. I know you might not believe this if you have looked at Ichi before and found it confusing. In a way I have already been laying the ground work of how to interpret and use the indicator and next time we will just be putting all these tools together so we can build some solid binary options trading plans around the Ichi Moku Indicator. Just like I always end these little chats you can remember one thing if Alfred is talking markets you can take it to the bank.