Technical indicators

Technical Indicators are tools for analyzing the dynamics of the price movement of an asset, constructing indicator trading systems, and receiving trade signals for trading with binary options.

Moving Average, MA, is the average price of an underlying asset over a certain period of time. By applying the “Moving Average” indicator on the chart, a trader can determine the general direction of price movement for an asset, which helps you make the right decision when predicting the future direction of the trade.

The “Moving Average” indicator is configured as follows:

The longer the period of the indicator, the more candles are used to calculate the average price and, consequently, the data gathered concerning trends on the direction of movement is more extensive.

The Alligator indicator is a technical indicator designed by the world-famous trader Bill Williams. The Alligator consists of three moving averages that more clearly demonstrate the changing dynamics of quote movement.

By applying the Alligator to quote charts, traders can analyze not only the general direction of asset quotes, but also changes in short-term trends that show the same intersections used in the moving averages indicator:

When configuring the Alligator indicator, the trader, just as when setting up the Moving Average, can indicate the number of candles to be used for the calculation of the average price (for each of the three indicator lines), and the time offset for each average. In the Alligator indicator (due to its exotic name), each line has its own name: Jaws, Lips, and Teeth.

Bollinger Bands are a technical indicator, kind of like a moving average, which in addition to calculating the average price for a certain period, also calculate its maximum deviation from the norm (from the average value):

When configuring the Bollinger Bands indicator, the trader can set the period of the moving average (the number of periods used to calculate the average price), as well as the option of calculating quote deviation from the average:

This indicator helps you determine the intensity of quote movement (the narrower the Bollinger Bands, the less mobile the market), as well as changes in trends in the direction of quote movement (quotes crossing the middle line of the indicator going up means there is a tendency to increase), and vice versa:

In a quiet market, “Bollinger Bands” clearly exhibit the boundaries of the range of price movement, which makes it possible to use Bollinger Bands for night trading in the channel.