How simple is to trade in the market when you have so many automatic trading algorithms in the world of the internet. No need to go in search of a trustworthy human broker and no need to spend sleepless nights reading about the tips and tricks to earn big in the business. The robot does everything for you and your account clings with money. Have you thought about the acting points of these robots, very much like the nerve ends in a human brain?
They are designed by humans to automatically function, but understanding the working and concept of these indicators will make it easier for you to bank in on the best techniques while trading. These are the various indicators based on which the robot decides the course of the trade.
The indicators of binary trading robot in brief
The trading signals generated by a robot are not based on any random market movements, but in response to well-organized and designed indicators which take the data from the past and the present data, interpret them and predict the future which will give maximum profit to the trader. The following are the most widely used indicators by trading robots:
Relative Strength Index: Also called RSI, very similar to any measuring device, this index
moves from one value to another on the scale of 0 to 100 as a representation of the market condition. If the value goes below 30, there is a higher possibility of the asset prices to go up and making a ‘call’ signal is considered to be the smart decision. If the scale goes above 70, the prices have reached the maximum and are likely to fall, so it is time for a ‘put’ option.
Williams Index: Here also, the values range on the scale between 0 and 100, but there is s slight difference in the extreme values. When the oscillator reaches above 80, overbought conditions persist and it is time for a ‘Put’ signal. When the scale goes below 20, a soar in the prices are expected, and the option is ‘call’.
Trend Indicator: When the current prices in the market are in an increasing pattern, a ‘call’ signal is given out and when the prices follow a downward trend, ‘put’ option is the signal.
Commodity Channel Index or CCI: This is also an oscillating scale, but the extremes range between -100 and +100. When the prices are going higher along the trend, a ‘call’ signal is generated, where the values are above +100. When there is a downfall in the prices, which is when the scale reaches beyond -100, a ‘put’ signal is generated by the robot.
The indicators relied upon by popular robots are not limited to these and you can refer full post in the next article for other brain methods.