A professional investor should understand, where is the perfect moment to open the option. There are many instruments that will help you identify when it’s time to open the trade. The smart traders apply the universal ADX indicator and « Medium Direction Strategy ».
If you want to track the free trading signals for binary options using this strategy, put these indicators on your chart:
DMI, Directional Movement Index, which shows the trend’s direction and the points of its reversal;
Average Directional Movement Index, which displays the strength and the changing of price.
On the binary options charts ADX is displayed in three graphics:
The + DI line shows the increment of the price;
Negative in –DI.
ADX is the ratio of the difference or the total sum of + DI / -DI values over several timespans. These charts are necessary to define the trend.
As per the Medium Direction Strategy, you can find out the options trading signals to open the transaction in the following way: if +DI is higher than -DI and ADX confirms the decreasing of sum, the trader needs to open a UP-option. In this situation, the market is going down and traders should open the DOWN-option. With sideways movement or falling ADX, it is better to quit the market. Here are some examples of the signals.