Trading indicators for Pocket Option

A breakdown of the most popular indicators for trading binary options and how to combine them into a working setup.

The indicator's structure, squeeze and expansion signals, and rules for trading off the band boundaries in different market conditions.

Principles for picking compatible indicators, common mistakes like duplication and conflicting signals, and an example set for binary options.

The difference between SMA and EMA, choosing a period for the task at hand, and typical ways to apply moving averages in market analysis.

The core difference between oscillators and trend indicators, the conditions where each type gives reliable signals, and rules for combining them.

How ADX is calculated, trend-strength thresholds, and combining the indicator with the +DI and -DI direction lines.

How CCI is calculated, how to interpret extreme values, and a comparison with other oscillators like RSI and the stochastic.

How fractals are plotted, signal confirmation rules, pairing fractals with Parabolic SAR, and the indicator's limits on short timeframes.

The structure of the MACD indicator, signal types — line crossovers, histogram and divergence — and tuning for different timeframes.

How SAR dots are plotted, the signal when dots flip to the other side of the chart, and the indicator's limits in a ranging market.

How RSI is calculated, period tuning, overbought and oversold zones, and common mistakes trading this indicator.

How the stochastic is calculated, line crossover signals, overbought and oversold zones, and a comparison with RSI.