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"Speedometer" - new indicator in vfxAlert

"Speedometer" - new indicator in vfxAlert

If there are many indicators on the chart, this does not help much to understand how binary options signal work. Analyzing several oscillator charts simultaneously, the Moving Average movement, and the dynamics of volume changes requires experience. There is a lot of information; it is easy to make mistakes if you are a beginner. With short-term options, there is simply no time for this. The “Speedometer” indicator of the new version of vfxAlert will help you quickly see the current situation and make the right decision. Setting the indicator. Forex and cryptocurrency currency pairs are available:

The size of the indicator panel can be adjusted. To do this, click on the top border of the panel and set the desired width. The following information is displayed: 

Timeframe. We look at the «Summary» data for larger and smaller time intervals. A proven method of technical analysis: if the market direction coincides, it reinforces binary options signals. If the direction is different, we stay out of the market! 

Bulls&Bears. Who is stronger in the market: buyers or sellers? The calculation is based on the standard Bulls Power and Bears Power indicators. Indicators are available in all popular trading terminals. Restriction: they give false signals after the release of strong fundamental news or speculative actions of market makers. Use data only on a "quiet" trend and expiration of 2-3 hours.

Pivot Points. The calculation is based on the high, low and close (Close) of the previous day. Three levels above the Close price will be resistance levels (R1-R3), below support (S1-S3). From them, the price can reverse or continue the trend after breaking through. There is a greater likelihood of a rebound from R3/S3 levels look at the chart, other indicators and chart patterns!

Oscillator. All exact binary options strategies must determine the onset of market overbought/oversold conditions after which the trend reverses. «Speedometer» uses:

RSI. Trend indicators must necessarily be confirmed by at least one oscillator indicating an overbought when buyers can no longer move the price up, or oversold where there is almost no one in the market to sell at lower prices. 

Commodity Channel Index (CCI). Shows the dynamics of price movement or how fast the current trend is growing or ending. As you know, the price of all trading assets (currencies, stocks, futures, indices) moves cyclically between local maximum/minimum.

• Volatility. Determined by the ATR (Average True Range) indicator. The closer to «High» the greater the probability of a trend reversal, near «Low» the trend ends and we look at other binary option trading signals.

• Trends. It works by Moving Average and shows where the market can go for the next 10-15 bars of the selected timeframe. We always confirm the direction with other «Speedometer» signals.

Example of a strategy using "Speedometer» The chart shows two Simple Moving Average (SMA): "fast" with a period of 5 (yellow) and "slow" with a period of 20 (blue). The first opening signal will be their intersection:

• CALL-option. The fast SMA crosses the slow one from top to bottom. 

• PUT-option. Opposite conditions: the fast one crosses the slow one from the bottom up. 

Moving Average has the largest delay among the tools of technical analysis. Additional confirmation is required: "classic" binary options strategy use overbought/oversold oscillators. "Speedometer" contains two oscillators: RSI and CCI, they are enough to confirm the intersection of MA.

Why two indicators, why also the USD/CAD pair? The answer is simple: to further filter false signals. These pairs have an inverse correlation: if the EUR/USD an uptrend, the USD/CAD downtrend, albeit with a lag. Now the Forex market is less predictable than 2-3 years ago, correlations can be broken, but most of the trading day it works.

The picture shows all the conditions for PUT-option: SMA intersection, a signal for vfxAlert (also for MA, but with other periods), the inverse correlation of Euro and Canadian dollar. 

How to work with Speedometer

• We trade only with the trend. Choose Forex/Crypto trending signals in vfxAlert program.

• The trading binary signal is amplified by high volatility and Pivot Points breakdown at the levels R2-3 for the BUY zone and S2-3 for the SELL zone of the «Summary»;

• Select a timeframe less than the working one. In our strategy, this is 5 minutes, and we set the Speedometer to 1 minute;

• The minute timeframe confirms the MA intersection. If both indicators are in Strong zones, the trend may end and there will be a reversal. Skip the signal, wait for the next one!

• Open an option with an expiration of 3-5 candles of the working timeframe.

«Neutral» indicates no trend. Look at the chart if we go sideways to range options or an exact binary options strategy!

Recommendations about use … 

• For beginners, it may seem that only the Speedometer is enough, other tools are not needed. Three indicators provide fairly reliable signals, but it is always recommended to look for additional confirmation from technical and candlestick patterns. They can cancel even a Strong signal!

• On cryptocurrencies, always set "Speedometer" to BTC/USD. Bitcoin will be the basis of any top binary options signal. Other currencies follow, albeit with a delay. The Ethereum exception - there are opposite rollbacks and corrections. This is usually the case when publishing important events about the currency, speculative actions are short-term and almost do not occur.

Let`s summarize. Professional traders consider indicators such as "Speedometer" useless toys that can not be traded. Beginners will consider this a good variant for how to make money on binary options. Both views are wrong: it is only a recommendation not opens the options only on such indicators. But using them, you can quickly assess the market, confirm a trade according to your strategy, and skip the signal when it is not clear whether the market will turn around or not.

Start trading


Available vfxalert signals present for informational purposes only and in no way are not a guide to action. The owner of the site and the program does not accept any responsibility for the use of information provided on the website and in the program vfxAlert, as for any errors. Information on this site does not constitute a public offer.