Every binary options trader deep down dreams of optimising their performance to the max. It would be ideal not to do any forecasting at all, but to get ready-made signals on which to make trading decisions. In this article we will talk about what signals are available in the binary options market and how to use them.
Signals for binary options from brokers
Some brokers provide signals to their clients and they do it in different ways. Some have them available only on a paid basis or only for VIP clients. But there is a category of brokers who give signals to every client for free.
Signals sent by email
This type of signals is also provided by some binary options brokers. They are sent several times a day (i.e. not in a stream). Naturally, it significantly reduces the opportunities for the trader. On the other hand, such systems allow making more informed decisions about an underlying asset.
Advantages and disadvantages of signals from brokers
Signal systems provided by binary options brokers have the following advantages:
- Free. Generally, broker signals are completely free. You only need to make a deposit to start working with them.
- Convenient. Most platforms with signals have a simple interface.
As for the disadvantages, they include low accuracy. As we mentioned above, it is better to use signals as part of your trading system to confirm entry points.
How signals for binary options work
To make it easier for you to understand whether it is worth trading with paid binary signals, we will show you how they work. Unfortunately, many beginning traders do not fully understand how such systems work. They think that getting signals is like some magic, available only to super professionals. But in fact, this is far from it.
Technical analysis indicators are the basis of any signal system
Based on the knowledge of the signals given by the indicators that underlie such systems, their creators automate the process and create visualizations to simplify the work. The system works as follows — a signal appears on the indicator, the programming code interprets and transmits it for display, the trader receives the signal and makes a decision.
All indicators can be roughly divided into two main groups — trend indicators and oscillators. Each of them works under certain market conditions. Oscillators are more suitable for range trading, while trend indicators are suitable for situations where the market has a certain direction. Correspondingly, if the signals are based on trend indicators and work with trend strategies during ranges, they will give false signals. If the system is based on oscillators, they will also give wrong entry points during trend periods.
That is, the signal system is an algorithm for automating the receipt of entry points from the indicators used in the signals. Is it worth paying money for it? It’s up to you, but you get the same thing from brokers, and absolutely free of charge.