Summary Indicator: fast analysis, good profits
- VFX Blog
- For beginners
Setting a large number of indicators on a chart is one of the most common mistakes of novice traders who want to understand how binary options signals work. Ten Moving Average, five oscillators and two-volume indicators do not add accuracy to signals. With short-term options, there is no time to keep track of everything; you need to make quick decisions. The "Summary" indicator from vfxAlert can help with this.
Indicators of this group show the current market movement and the balance of power of buyers/sellers in the form of a scale. The «warmth» of the color of the scale, the stronger the trend or open interest. Arrows can be used instead of a scale.
The strength of the trend, the volume of open interest, is determined by the "heat" of the color indicator scale. Look at the examples:
- Bitcoin signals on a 15 minute timeframe. It was possible to open a PUT-option but look at two upward candles in the middle of the downtrend. If the deal was opened on the previous candlestick, it will close with a short expiration in minus.
- Ethereum. Here, the indicator works by correctly showing a sideways movement with a possible upward reversal
- False signal for Litecoin. Long-term downtrend with periodic short-term consolidations, making it impossible to open a CALL-option. Considering that options payouts are always less than 100%, you need at least two next profitable trades in a row to compensate for the loss.
- For crypto trading on dashboards, an indicator for BTC / USD is required. Bitcoin is the main currency and all altcoins, albeit with a delay, follow its trend. Exception Ethereum - there can be opposite pullbacks and corrections, usually when publishing important news on a currency. There are rarely short-term speculations that do not lead to a trend reversal.
- We use only trendy Forex and crypto trading signals of the vfxAlert software. You can trade reversal short-term binary options, but only when there is additional confirmation.
- The reliability of trading binary signals increases when the price breaks through the Pivot Point levels: R2-3 for CALL-option (BUY zone on Summary) or S2-3 for PUT-option (SELL zone).
- For Forex! During the publication of important fundamental news and statistics, we do not open options 30 minutes before the news and 30 minutes after the publication; cautious traders can close current deals. To control the events, we use the economic calendar included in the all popular binary trading platform!