Some services are specialized in providing binary options trading signals. Some are legit, others are scams, but they have a common characteristic: you have to pay to get the information. However, there are some free resources that you can use to help you. They are not really designed to serve as binary options trading signals, but they can be used this way.
Support and resistance levels
Even if you are comfortable with technical analysis, calculating support and resistance levels for a lot of pairs can be very time consuming. Why would you waste that precious time while this information is available for free, and can be used as binary options trading signals? Here is an example from dailyfx.com:
We can see, for example, that the pair USD/JPY has 3 levels of support (110.89, 109.5 and 108.1) that are respectively strong, moderate and weak. The resistance levels are at 113.73 (strong), 112.32 (moderate) and 111.17 (weak).
You can therefore set a pending order on those levels to get an alert once/if the pair reach those levels of support or resistance. Without a strong reason (driven by fundamentals or technicals), price tends to bounce on those levels before eventually breaking out after a few tests. Those support and resistance levels are therefore a pretty good indicator that can be used as a binary options trading signal.
Binary options trading signals for Forex: 5 min, 15 min, 30 min, one hour…
Another interesting tool that you can use as binary options trading signals is the Forex technical indicators of the website investing.com. For the major pairs this tool analyzes the main trading indicators such as the RSI, the MACD, the Ultimate Oscillator and many others. The analysis is provided on the main binary options expiries that are five minutes, 15 minutes, 30 minutes and one hour. You can set the desired timeframe using the drop-down box. On the right of the screen there is also a more concise version that has its own drop-down box timeframe.
In total, there are 12 indicators that are monitored in real time. For each of these the website attributes an action:
- Strong sell
- Strong buy
Those digital options trading signals compile all the results to provide an indicator summary. It uses the same actions as described above (strong buy, etc.). From a technical point of view you will favor strong buy or strong sell with as much as possible buy or sell indicators (12 being the safest bet). Bear in mind that these are purely technical factors, news can affect this and a strong buy does not mean the price will go up 100% of the time.
From my very limited experience with those indicators I would say that the longer the timeframe, the most reliable it is. I would like to systematically test the reliability of those indicators on my Spectre binary options demo account, when it performs best, on which pairs, but it will require a lot of time and effort. With a 30 min expiry I got 4 winning trades out of 5 attempts after following a “strong buy” signal (plus another one, but the winning trend was broken by a news, I did not check that as I was merrily testing). If I find the time to do it I will publish the results here. So stay tuned.
Real binary options signals for free?
If you are looking for smart options signals that you can use blindly, you will have to use a paid service such as the one provided by signalhive.com. It is not free, of course. To my knowledge there is no free binary options signals service that has a decent track record (feel free to correct me if I’m wrong in the comments section). At the end of the day if someone is able to give you consistently binary options trading signals with a win rate higher than 60%, it is something that many traders will be happy to pay for.
You can, however, get free access to Signal Hive by become a student of the BlueSky Binary trading academy. And you can get free access to their binary options course by holding a cryptocurrency called SXUT. Click on the link to find out how!