Tendency Indicators

Every investor has their own unique trading strategy that works best for them, but there are some techniques and tools that all traders should consider when refining their investment strategies. No strategy is perfect, but by integrating a variety of techniques, a solid strategy can be developed over time.

Techniques for improving investing strategies include technical and fundamental analysis; however, one of the most widely-used and an effective technique for trading binary options is known as the tendency indicators strategy.

Tendency indicators gauge the direction of asset investments, provide comparisons to projections and can be viewed in multiple time frames.

One example of a tendency indicator is commonly referred to as “Trader’s Choice,” which calculates the direction (Call or Put) in which traders are investing and provides a percentage for each side (up and down). On the 24option website, all underlying assets have these indicators available directly from the trading platform.

tendency-indicators-24option

Other useful indicators available on 24option.com are Relative Strength Index (RSI), Moving Averages (MA), Moving Average Convergence Divergence (MACD) and Bollinger Bands.

Each one of these offers a unique insight into trading and can be understood by both new and experienced traders. To access these on the 24option website, click the box icon on the top right corner of the chart that appears for a selected asset on the trading platform, and then choose the type of indicator from the “Studies” tab.

chart-24option

Some basic information for common tendency indicators includes:

  • RSI – available for No Touch and High/Low investments. The index measures overbought and oversold assets in the market.
  • MA – shows the average price of an asset over time. Not used for future forecasts, but rather indicates past trends.
  • MACD – compares the movement of two separate assets and is used for stock prices.
  • Bollinger Bands – used to measure volatility of an asset relative to the morning projections.

While these indicators are not a guarantee for profit, they are very useful for learning tendencies and can help investors make smarter decisions. When making investments it helps to consider as many angles as possible, and becomes easier over time to identify trends and to predict market fluctuations.

Having a solid investment strategy will help those that are just beginning to trade binary options, as well as seasoned professionals, and can help improve odds of success. Check out the indicators available at 24option today to continue to enhance your trading strategy.


*Disclaimer: Trading Binary Options and/or CFDs involves significant risk of loss. CFDs are leveraged products and it is possible to lose more than your initial investment. Trading alerts should not be considered as investment advice. The decision to act on any signals is yours and taken at your own risk.

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