The Latest Generation Technical analysis tool: One of the most important features that IQ Option offers traders is the ability to apply markers and symbols on the chart, real-time. In a nutshell, the possibility of using technical analysis. WEB-based binary options platforms rarely have drawing tools and even fewer, built-in indicators. The Availability of technical analysis tools makes IQ Option a very functional platform. In spite of everything, what is the real benefit of this kind of graphics and the importance of using drawing tools and indicators?
The Importance of Drawing
The drawing board is an essential tool of technical analysis. Above all, this is due to the fact that many trading systems and a significant number of strategies are designed for traders to rely on trading, such as support and resistance lines. Each trader chooses the lines and shapes he needs, as well as the deadline for them, for himself. For this reason, it is extremely useful to use the chart markers.
There Are Many ways to use these markers. Of course, the most common is to use them to see future trends. The trend is the most important thing in binary options. The use of drawing tools for the creation of graphic analysis markers and the search for patterns of graphics – Diamonds, triangles, Three Peaks, Head & Shoulders, etc. – can be equally effective.
For example, when graph shows that a three-peak pattern is being generated, identifying the entry point, i.e. the breaking point of the support line, is not an easy thing to do at first sight. You can track the correctness of the build process of the figure and get a clear and understandable entry point, only by using tools in the chart.
Tools can be used not only to work with strategies on the graphics and simple patterns that are generated. They can Also be used next to the indicators that are available on the platform.
Technical Analysis Indicators
It should be noted that the platform is equipped with four known indicators, Bollinger bands, Mobile Stockings, the RSI (Relative Strength Index), and Alligator. All of them can be used both individually and jointly. The indicators help traders to anticipate the direction of the price movement in the right way.
Bollinger bands is one of the most popular indicators. Based on the data from which the average and standard deviations are moved, a corridor is created in which the trend runs. By Focusing the boundaries of the aisle, we get signals for the purchase. If The price is broken at the lower limit, we must buy options go up, if it breaks in the upper limit, you have to buy low options.
Moving Stockings show the average price of the asset based on a default example of time interval, 14 days. If the trend crosses the moving average, it is a sign to buy options in the direction of the trend. The longer the time interval, the more accurate the signals are. However, they are minors.
The Relative Force Index (also known as RSI) is only available when working with the sail charts. This indicator is also very popular and is one of the most widely used world-wide. It Reflects both the strength and the magnitude of the price changes. Unlike other indicators, the RSI is not shown in the chart in any way, it is built in a separate window just below the graph. A lot of different strategies are based on this indicator. The RSI shows overbought or oversold levels based on historical data. If the asset is overbought, we should buy low options, otherwise options go up.
The Alligator is highly competitive with the above indicators in terms of popularity. It Is presented as three moving averages of three different periods. When the lines intersect, it means the trend is about to change. Once the three lines point to One direction, the trend begins. After that, we must follow the trend. A series of profitable and simple strategies that have been successfully used by traders around the world are based on Alligator.
The use of technical analysis indicators not only helps to obtain fully comprehensible data analysis, but also to define the time of purchase. In Addition, thanks to the Alligator you can fully follow all the opportunities, because the proper analysis of the price movement requires not only the information that an indicator itself can provide. Very often, for example when using Bollinger Bands, traders also use the support and resistance lines to obtain a clear and correct signal. Minimize the risks that traders face. It is Worth noting that it is almost impossible to execute those lines without a drawing board.
The use of both indicators along with a wide variety of graphics on the IQ Option platform is not limited. You can put all the markers and indicators needed in the same graph to make a technical analysis of the most efficient.
The IQ Option Drawing board can provide significant assistance to traders as it contains all the tools necessary for the proper technical analysis. It Allows users to identify input and output points more effectively, as well as analyzing the diagram and significantly reducing risks. You earn more money by combining indicators and diagrams to filter the signals received with different tools. It Is Important to note that drawing tools not only serve when working with certain indicator-based strategies, but also serve as a basis for profitable strategies. In Addition, they are very useful for the coverage and work with the patterns, all this makes the drawing panel of IQ Option is most useful. Trading with the use of indicators and graphics can ensure regular income.