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:

Currency pairs and cryptocurrencies are available. The red part of the scale is responsible for PUT-option, green for CALL-option. "Neutral" indicates no trend. It's simple; let's go straight to the examples of use.

We trade only "Summary"

It may seem to beginners that using only the "heat" scale of the indicator is enough to start trading without additional confirmation. In reality, this is not the case, technical and candlestick patterns can cancel out even a strong live trading signal "Summary"! Let's look at some examples:

Important! We look at the price movement and indicator signals for one HISTORICAL PERIOD, when it is already clear to open an option or not. In the real market, only the current price change is visible, it is more difficult to make a decision:

• 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.

«Summary» + strategy

Now let's confirm the indicator data using the exact binary options strategy. To do this, take the classic "Triple Screen" by Alexander Elder, where three timeframes are used to open a trade: "small", "medium" and "long".

The basic principle is that each subsequent timeframe must be at least 5 times larger than the previous one. For short-term options on the main currency pairs and day trading crypto, the combination "M1-M5-M15" is suitable.

We open a deal with an expiration of 5-10 minutes on the “average” (M5) timeframe, and all three have the same trend. "Summary" allow you to quickly analyze a situation without having to switch between multiple charts.

For additional filtering of market "noise", which is a lot on crypto signals, you can set Stochastic with a period of 20-30. Also, look at the «Bull & Bears» balance on the Speedometer. If the balance is opposite to the main signal, skip and wait for the next one!

«Summary» + candlestick patterns

Visual analysis continues to be one of the best methods of market analysis. It has less lag than the technical one. A person with experience can see a trend change or a continuation of the current trend faster than even top binary options signals. Let's look at examples:

On the M5 timeframe, there is a long flat, confirmed by indicators. The price moves in a narrow range with rebounds from its borders. As you know from technical analysis, the longer the trend, the closer its end. Moreover, both borders had several retests, so you need to prepare for a breakdown. But up or down?

To do this, let's go to M1, where PUT-option is possible. On the chart, there is a reversal candlestick pattern pointing to a downtrend. This is a leading crypto signal, you can open a trade on M5 with an expiration of 10-15 minutes.

«Summary» again attracted the attention of the trader for a more detailed analysis and the variant of the new option. The opposite situation is also possible – the candlestick pattern cancels the signal. In this case, it has more weight than the indicator!

Recommendations about use …

• 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!

The main thing in any technical analysis tool or strategy is to understand why signals for binary options have appeared, to remain patient, trading only the most reliable of them. Use "Summary" to confirm your ideas, get profit on any assets. Even on a market as volatile as the cryptocurrency market.