If you, like me, trade binary options using the industry standard Meta Trader 4 platform then this post is for you. Especially if you’re looking for an indicator that will help you expand your trading experience and provide valid signals that you could trade on and make profit. Most pro traders will tell you to just look at Volume and PA (Price Action) using candle stick view. I agree that this method is effective but unfortunately it works only for very experienced traders. Here I would like to present FREE and very powerful indicators for trading binary options. Surely these indicators will be enjoyed by novice, as well as, advanced traders who use the MT4 platform for technical analysis.
1. The 3 Level ZZ Semafor Indicator
One of the best indicators for novice and pro traders is the 3 level ZZ semafor indicator for Meta Trader 4. The indicator is very easy to use and to follow and although it repaints at times the signal at a 3rd level is usually very strong. When the 3 level ZZ semafor is combined with a price action analysis and volume it can be very useful in determining the buy and sell entry points. The only downside to this indicator is that it slows down the loading time of the Meta Trader 4 platform and if you’re using it along other complex indicators you will find that your system is not as responsive as it used to be. My word of advice is to let this indicator run by itself or with only selected few other indicators.
Recommended time frames and expiry times.
This indicator works best on Forex pairs, but since it performs demanding calculations it is best to keep only a few pairs open. The last thing you want trading binary options is to lose opportunities because of processing and time delay. I’ve used this indicator successfully on various pairs and on 5 min trades on 1 minute timelines but I’ve also had good winning rate on a 5 minute timeline going for 15-20 minutes of expiry times. You could easily use this on 15 minute or hourly charts as well.
How to read the 3 Level Semafor signals
Here is a video on how to install and use the 3 level ZigZag Semafor indicator on Meta Trader 4. I hope you’ll find it useful.
Download and Install the 3 Level ZZ Semafor Indicator
Click the link below to download the indicator in a zip file. Unzip it and place the file in your MT4 indicators folder and run your Meta Trader 4 software upon completion. Add the indicator to your currency pair and observe the price action. Level 3 will be marked with a big yellow circle with the number 3 in it. You can also trade on level 2 but I found that trading off level 3 is much better.
2. Candle time MT4 indicator
Another very useful MT4 indicator for trading binary options is the candle time clock which counts the duration of each candle. If you decide to use it on a 1 minute charts the clock will go up to 60 seconds. If you use it on a 5 minute chart the clock will go up to 5.00 minutes.
How to use the candle time indicator
After installation you must add right intend in Meta Trader 4 to allow additional space on the screen to display the clock. If you’re trading 1,2, or 5 minute options expiry times than this indicator will be very useful in determining your entry times. This indicator will also help you to understand price movements within each candle. One thing to consider with this indicator is that its time only changes on price movements, otherwise it remains still. Click the link below to download the zipped indicator. It is very lightweight and works on all time frames.
3. Candle Direction Across Multiple Time Frames Indicator
This is a very lightweight indicator that simply sits in the corner of your Meta Trader window and displays the direction of the candle on other time frames. This is a very simple yet useful indicator that helps in recognizing bullish or bearish trends and gives you an quick insight into what is going on with your trading instrument on different time frames.
How to use the candle direction indicator
Using the indicator is very simple and straightforward. The green squares indicate a bullish candle and the red indicate a bearish candle. White squares indicate a possible change of direction or simply lack of price movement. When all squares are green or red you know that the currency pair is trending. This is a good indicator for short term trades, such as the 1, 2, or 5 minutes expiry times.
FREE BONUS – Binary Viper Buy/Sell signals
This is a free custom indicator that will give you very strong signals. The signals will be in a form of green and red arrows. This indicator is very good for time frames such as the 15min, 30min, 1H, and 4H. It will also work quite well on 1 minute and 5 minute charts although signals shown on these time frames should be confirmed on a longer time frame. So signals on a 5 minute chart should be confirmed on a 15 minute chart, etc.
How to use the Binary Viper Indicator
This indicator is extremely easy to use. In addition to clear arrows shown on the screen it will also produce sound and popup alerts by default. This can be modified and turned off in settings. There are few other additional features too. Please follow the link below for more information and to see Binary Viper in action.
This concludes the first set of free indicators for trading binary options. I hope that some of you will find them useful in your trading and that you will come back for more interesting indicators which I intend to upload very soon in PART 2. Remember to trade smart and watch the price action relentlessly. These indicators are only for further reference. If you’re looking for a less difficult solution to trading binary options try a signal service that will give you at least 75% wins. One of the best ones we’ve seen so far, reaching 85%, are Franco’s signals – Visit website or read our full review.
Remember, always practice on a demo account before going on to a real account! You can also try a few paid indicators and signals, some of them are actually quite good and will give you greater accuracy in trading.