Binary options signals, what is it?

Binary options signals

Signal is a main working instrument of the trader. Understanding of the ways how the binary options signals works is crucial for successful trading. Let's look on this in detail.

Binary options signals are alerts that are utilized for binary options contracts. Signals are the result of data of several financial indicators suggesting the subsequent market movement. These suggestions are based on different historical models of price and asset behavior. In a simple words, the binary signal is the future direction of asset's price.   

Signal is generated basing on two main variables — time and price (quote). The most part of forex signals is generated using the technical analysis or chart pattern.

Technical analysis

Program is based on the technical analysis indicators. Programmers enter the formulas of indicators. Basing on these formulas the program shows the cumulative result as the signal. For example, if the price 15 minutes ago was less than now and during this time the price has changed by 0.03 percent, it is necessary to sell (Call option). But if we display this in indicators, there will be just the moving average and the Stochastic indicator. The most complex signals take many indicators into account.

Chart pattern

A chart pattern is a configuration of price bars (candles), the formation of which on a chart assumes the typical behavior of market participants. The program itself draws graphical patterns that should predict the movement of the market. Using a chart pattern, you can not only determine the further movement of the quote, but also to calculate the goals of this movement.

Types of signals

• Signals from independent suppliers

These binary options signals are created by professional traders basing on their market strategy and experience. Signals from traders takes into account the fundamental factors and technical analysis. If the trader wants to obtain the paid signal, he needs to carefully choose the trustworthy supplier. 

• Free signals

Free signal is an option bot based on technical analysis. Usually, these signals are provided by option brokers. Also, there are «shareware» signals that brokers provide to clients after opening a deposit.

• Automatic forex signals

Automatic signal is the robot that subjects to the curtain algorithm. According to the algorithm robot convert the result into the signal. Trader receives the forex signal by SMS, messengers, email or the trading terminal.

What is vfxAlert and why it is better to work with vfxAlert signals?

vfxAlert is and application developed specially for traders. This application allows the working with different brokers and to track the binary options signals online. Trader can see in one woking window both the signal and the broker's platform. vfxAlert binary options signals are suitable both for beginners and experienced traders. For novice traders, it is especially important because they can practice on free account and to improve their skills in trading.  

vfxAlert forex signals are available just after the registration. Start with free subscription and develop your own strategy. Then, you may go to the PRO account.

On the PRO account there will be several additional functions: heatmaps, signal filters, signal subscription, extended statistics, signal power, possibility to work with different brokers and to trade with cryptocurrencies. Learn more about PRO account here.

Structure of vfxAlert signal

Signal consists of the several important indicators:

1. Asset — currency pair used in trading. 

2. Price — price when signal is appeared. For adaptive algorithm is the open price of current candle.   

3. Time — time when signal is appeared. For adaptive algorithms the time since the last update.

4. Expiration — time of signal’s expiration. Follow this indicator very attentively. When time is up, the signal will disappear. 

5. Power — number of profitable options in the past with this combination of indicators. 

6. Signal — CALL or PUT options.

7. Algorithm — signal generation algorithm.

8. Heatmap — Statistical winning percentage collected for the values of the technical indicator on a different timeframe.

The signals are generated basing on three types of algorithms: trending, reversal and adaptive. Algorithm is the sequence of actions whom the signal subjects. 

Adaptive. Algorithm uses the statistical analysis of historical details. Adaptive strategy shows the most favorable moment for entering the market.

Trending.  Algorithm uses the following technical indicators to generate signals:Commodity Channel Index (CCI), Relative Strength Index (RSI). 

Reversal. Algorithm uses the following technical indicators to generate signals: Parabolic SAR (Stop and Reverse), Moving Averages.

How to use the binary options signals on vfxAlert?

For a successful forecast, the trader needs to wait for the maximum signal strength and a recommendation for action.

Consider the value of different indicators and situation on market. Keep in mind, that if the market is unstable and there are important economic shocks in the world, then the signal and indeed all the technical analysis will be powerless in the forecast. In simple words, neither technical analysis, nor the most stable indicators, nor signals will help to make a profit if the world is in an unstable economic situation. That’s why trader need to educate himself: follow the economic news, learn more about the work of different indicators, try different strategies. It may take a lot of work but in long-term perspective you chance for success will increase.

keywords:binary options signals