Volume Analyzer for Binary Options and Forex.
This is a simplified version of Volume Amalyzer.
Apart from Forex, it can be used for working with binary options:
the probability of a successful trade is calculated based on the input data; the built-in tester allows you to select the best parameters; audio and visual signals at the time suitable for entering the market.
You can find more details about Volume Analyzer (VA) indicator here. This version implements one of its functions – emulation of a higher timeframe with a predetermined multiplicity (period) equipped with additional features for binary options.
For using on Forex, set Binary option mode parameter to false . Only the indicator histogram is displayed then. This VA version for Forex is simplified as much as possible and provides only three types of signals:
red histogram – sell zone blue histogram – buy zone gray histogram – uncertain state.
There are only two working parameters: History depth in days (be careful on М1 and М5!) and Period . You can also manage the color scheme.
If Binary option mode is true , the info panel is activated and the marks indicating potential trades and their past results are displayed in the histogram. The orange cross means loss, while the green one stands for profit.
Info Panel.
The test launch button is located in the upper right corner. The indicated time is an approximate one. It shows only the order of digits depending on the selected test parameters. During this time, the terminal is not available, so be careful!
Test results are displayed in the text message under the button. Receiving results does not lead to redrawing of the chart. If you want to use the obtained parameters for work, enter them manually in the indicator settings window.
Not all parameters can be tested (i. e., Period ).
The lower right corner contains the current calculation data and probability of gaining profit based on that data.
Other Settings.
Expire – order execution terms measured in the current chart bars. First valid signal & Last valid signal – buy signals come in series, the entry is impossible on the first one and up to the last one. This frame is exactly what these parameters define. Spread, points – check for profit is performed by comparing the opening of two bars at Expire distance from each other. This parameter sets additional gap between the openings. The parameter can be used both for increasing reliability and for working with the binary options using spread. Advise if win/los more than. – if the estimated probability of profit exceeds the value, buy/sell tips appear. Opening orders starts at & Opening orders ends at – alert operation time and market entry time used for the calculations. Closing may be smaller than opening. Series without empty bars – what is a signal series? If true , arrival of an empty signal bar is considered the beginning of a new series. If false , all unidirectional bars are considered to be a single series. Sound alert – enable an audio signal when completing the test and displaying a market entry tip. Use keyboard arrows – if true , use the arrow keys to increase or decrease the values of the parameters. Both main and additional keyboard arrows are used, thus covering four basic parameters specified in the lower right corner. Enable Tester button – if false , the test button is disabled. Ignore if signals NBR less than. – if the sum of profits and losses is less than the specified value, it is ignored when searching for solutions. Test Expire? – search for better execution terms? The next two parameters are the first and last search values. Test First valid signal? – search for the beginning of the valid signals? Test Last valid signal? – search for the end of the valid signals? Test Working time? – test working time. The test is performed on days after an hour without the possibility of setting a range.
The indicator is designed for the timeframes not exceeding H4.
Это моя вторая покупка индикатора. Первый раз купил просто для форекса - доволен прибылью. Эта покупка специально для бинарных опционов мне тоже пригодилась. Три сделки провел - все три в плюсе. И это еще только только знакомился с возможностями этого инструмента! Так что у этого изделия есть большой потенциал. Спасибо автору.
Binary Options Edge.
Volume Indicators.
Like This Unlike lawrencevkim 16 Sep 2015.
For all of you who use volume in chart analyse and can't get it in TOS - indicators below are right for you!
So this one is similar as we can see in MT4 - volume histogram based on quantity of ticks per each candle.
Here you need to choose manually in settings PAIR on which one you apply that indicator and it would get volume from Futures Market. So it's volume bars based on real money that was traded in every particular candle based on Futures.
I included "BetterVolume indicator" for both types of Volume indies, if you need more info about it - just google.
Like This Unlike lawrencevkim 16 Sep 2015.
Like This Unlike fitri 29 Sep 2015.
can u make arrow for this.
Like This Unlike lawrencevkim 29 Sep 2015.
can u make arrow for this.
Like This Unlike fitri 29 Sep 2015.
for better volume.
Like This Unlike lawrencevkim 29 Sep 2015.
for better volume.
arrow on every colored bar in what direction.
Like This Unlike fitri 29 Sep 2015.
on red and green bar.
Like This Unlike lawrencevkim 29 Sep 2015.
on red and green bar.
I can't. I simply can't cause you keep asking for NOT specific algorithm for arrow to appear.
Like This Unlike fitri 29 Sep 2015.
Like This Unlike binarops 04 Dec 2015.
Thank you for sharing these indicators Lawrence , amazing amazing contribution, I won't need two charts any more for one single pair. And anyone that use wyckoff methods for VSA will also take advantage of the better volume indicator. I had the Better volume indicator, but only for futures, this is amazing my friend.
Like This Unlike Tripack 04 Dec 2015.
I've been studying forex "volume" behavior for quite some time, but never found better volume indi or any of the likes more useful than the stock one, with MT4 that is.
Like This Unlike tjschmitt 04 Dec 2015.
soon a guy pete faders fxsource will be coming out with a volume indicator that compiles 20+ broker volumes into one indi. As we all know volume in forex is subject to each specific brokers price feed. To get brokers compiled together will give you a broader idea of what the market is doing. I am by no way affiliated with him, I have just been watching all his videos and following his thread on baby pips for almost a year now.
Like This Unlike Tripack 04 Dec 2015.
Like This Unlike tjschmitt 04 Dec 2015.
yes he really simplifies the process. A great guy to learn from for anyone starting out.
Like This Unlike RTR 27 Mar 2016.
Like This Unlike odines 28 May 2016.
theres a link to download the better volume indicator based on real volume (not tick volume)?
Like This Unlike lawrencevkim 29 May 2016.
theres a link to download the better volume indicator based on real volume (not tick volume)?
this is paid indicator (based on real volume)
Like This Unlike odines 31 May 2016.
this is paid indicator (based on real volume)
hm.. do you think it´s worth the price? im interested in this indicator because i used to trade stocks not forex, so i can use real volume, and im learning to use vsa as my primary method too.
Importance of Volume for Trading Binary Options.
Price is an essential point in trading, which is why we’ve mainly focused on its mechanics up until this point. However, trading binary options has other important aspects and volume is one of them.
What is Volume?
The concept of volume is a rather simple one. Volume is the amount of shares or contracts traded within a set time perimeter (a day, in most cases). The higher the amount, the higher the volume, and hence of activity of the security. Changes in volume can easily determined or viewed as in most there are volume bars located around the chart. By observing shifts in a security’s volume, we can spot emerging trends, just like we can use prices for the same purpose.
How Important is Volume?
It is possible to use volume as a confirmation mechanism for trends and chart patterns, automatically making it one of the most important aspects of technical analysis. If we observe a price alteration with a high volume level, it would be considered more relevant than the same price alteration but with low volume. In the first case it’s much more probable that we are talking about a trend reversal, while in the second case it might be a simple temporary fluctuation which is irrelevant to long-term trading.
Let’s set an example in order to visualize this more easily. Imagine that a company’s stocks rise in value with 5% in one trading day after a long-term drop. We have the price aspect, but it cannot tell us if we’re looking a trend reversal or a random fluctuation at the given time. For a more relevant conclusion, we should look at the volume of the asset for the same day. If the volume is higher than average, then this might very well mean that we are looking at a trend reversal (remember that technical analysis isn’t an exact science, which means that this is not conclusive; it’s telling us what we might be looking at but we are still working with possibilities). However, if the volume is lower, then it’s probably not a trend reversal at all.
Volume should generally go the same direction as the trend. If prices are rising, then so should the volume, and vice versa. Volume can also be used to determine a trend’s stability. In the cases where the two values correspond and have the same direction, then we are talking about a stable trend. However, if the price and volume start moving in different direction, this may be a sign that we are talking about a weakening in the trend.
In the cases when price and volume tell different stories, we are talking about a divergence. This is a phenomenon described as a discrepancy between two different indices (in this case price and volume).
Volume and Chart Patterns.
Volume can also be used to confirm chart patterns. We will describe the confirmation process in more detail once we talk about the different patterns, such as head and shoulders, triangles and flags. Volume is the aspect that helps us determine the accuracy and strength of a pattern.
Volume Precedes Price.
Volume can also give us a basic idea about the future price movements of an asset. If the volume is decreasing, then the price will probably decrease, as well, even if there is an uptrend at the current moment. This is a very important point for various reasons, the most important one being that it can actually help us with price predictions and can give us the idea of when it’s the right time to buy and the right time to sell.
This is an overall important aspect of technical analysis and will help us in our further studies of the this splendid activity called trading. The better your understanding of the basic concepts is, the better you will be able to grasp the overall concept, the ideas that tie the whole venture together, the immense opportunities related to trading. In the end, all of this is crucial for your understanding of the market and the modern economic mechanics. Now that we’ve covered some of the basics, it’s time to move on to something a bit more complicated – charts.
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The Most Important Technical Indicators For Binary Options.
Consider the following bets:
Pay $45 to bet that the price of gold will be above $1,250 at 1:30 p. m. today. Get $100 ($55 profit) if you win, lose $45 otherwise. Receive $81 now to bet that NASDAQ US Tech 100 index will go below $2,224 at 2 p. m. today. Keep a profit of $81 if your prediction comes true. If it does not, lose $19. Pay $77 to win $100 if the USD-JPY forex rate goes above 78.06 at 2 p. m. today; you lose $77 if it does not. Gain $33 if you bet on the price of bitcoin will go below $379.5 at 3:00 p. m. today. If it doesn't drop that much, lose $67.
Welcome to binary options. All or nothing, one or zero, these securities are available on Nadex and the Chicago Board Options Exchange (CBOE). Binary options allow traders to make time-bound conditional bets on predefined values of stock indices, forex, commodities, events, and even bitcoin values. Like a standard exchange-traded option, each binary option has an option premium ($45, $81, $77, and $33 in the examples above), a pre-determined strike price ($1,250, $2,244, 78.06, $379.5), and an expiry (1:30 p. m., 2 p. m., 3 p. m. today).
The differentiator is the settlement price that remains fixed at $0 or $100, depending on the option condition being fulfilled. It keeps the net profit (or loss) fixed. The option premium also remains between $0 and $100. (Related: Guide to trading binary options)
Since binary options are time-bound and condition-based, probability calculations play an important part in valuing these options. It all boils down to “ what is the probability that current gold price of $1,220 will move to $1,250 or above in the next four hours?“ The determining factors include:
Volatility (how much and is it sufficient to cross the threshold/strike price?), Direction of the price move, and Timing.
Technical indicators suitable for binary options trading should incorporate the above factors. One can take a binary option position based on spotting continued momentum or trend reversal patterns. Let’s look at some of the popular binary option technical indicators:
Wilder’s Directional Movement Indicators (DMI) Average Directional Index (ADX): Composed of three lines, namely ADX, DI+, and DI-, and their relative positions, this indicator aims to capture the strength of an already identified trend. Here is the table for interpreting the trends:
Weak, Unsustainable Uptrend.
Weak, Unsustainable Downtrend.
Here is an illustration, using 3M Company (MMM) stock:
Image courtesy StockCharts.
Depending upon the identified momentum and trend strength, an appropriate buy/sell position could be taken.
Pivot Point (in conjunction with support and resistance levels): Pivot point analysis helps determine trends and directions for any given timeframe. Because of the flexibility in timing, pivot points can be used for binary options, particularly for trading highly liquid major currencies. A good example (with calculation and graphs) is included in the article Using Pivot Pointsin Forex Trading. Commodity Channel Index (CCI): The CCI calculates the current price level of a security relative to the average price during any given timeframe. The average price level is usually the moving average. Time periods can be selected as desired, allowing the trader flexibility in choosing when a binary option expires. The CCI is useful in identifying new trends and extreme conditions of overbought/oversold securities. It is very popular among day traders for short-term trading and may be used with additional indicators such as oscillators. The CCI is computed with the formula:
"Price" is the asset's current price, "MA" is the moving average of the asset's price, and "D" is the normal deviation from that average.
High values above +100 indicate the start of a strong uptrend. While values below -100 indicate the start of a strong downtrend.
Stochastic Oscillator : In an interview, the creator of the Stochastic Oscillator, Dr. George Lane, said “it follows the speed or the momentum of price. As a rule, the momentum changes direction before price.” This important underlying detail indicates extreme cases of overbuying and overselling, allowing reversals for bullish and bearish phases to be identified.
The crossover of %K and %D values indicate trade entry signals. Although a 14-day period is standard, binary option traders can use their own desired timeframes.
Levels above 80 indicate overbought, while those below 20 indicate oversold.
Bollinger Bands : Bollinger bands capture an important aspect of volatility. They identify upper and lower levels as dynamically generated bands based on recent price moves of a security.
Commonly followed values are 12 for simple moving average and two for a standard deviation for top and bottom bands.
Contraction and expansion of the bands indicate reversal signals that help traders take appropriate positions in binary options. Overbought situations are indicated if the current market price (CMP) is above the top band. While overselling is indicated when the CMP is lower than the lower band.
A challenge in binary option trading is correctly predicting the sustainability of a trend over a given period. For example, a trader may take the right position for an index, predicting it would hit 1250 at the end of a five-hour period, but the level was achieved in the first two hours. Constant monitoring is needed for the rest of the three hours if the trader plans to hold the position until expiry, or a predetermined strategy should be executed (like squaring off the position) once the level is reached.
The technical indicators discussed above should be used for timely actions with constant monitoring. One major disadvantage with technical indicators is that the results and calculations are based on past data and can generate false signals. Traders should practice caution with detailed backtesting and thorough analysis for high-risk, high-return assets like binary options.
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