BinaryOptionGain.com is a downloadable software package for MT4. It is based on the popular Fibonacci sequences and utilizes several proprietary indicators. In order to get the down load you will have to register with the website, but unlike so many other sites I review this one actually gives you a lot of information before you have to give up your data. The strategy is described using the 15 minute MT4 charts but longer and shorter time frames can be used as well. The strategy uses 4 indicators to provide signals and works for both calls and puts. While not a trend following strategy per se, it does work best on a trending asset but is also useful for assets the tend to trade in tighter long term ranges like forex and commodities.
After reading through the website I get the feeling that our author is disciple of Fibonacci and who can blame him. I use Fib’s myself on a day to day basis and think they are a great method of technical analysis. This strategy uses standard Fibonacci Retracement with a 10 bar simple moving average and two proprietary indicators. These are called the FD Index and the Trend F Histogram, both based on Fibonacci theory. Now, to be clear, you will have to register with this website in order to get the download but there are full instructions on how to use the strategy provided with free and open access. This is a good sign that the tools are legit. To make sure, using a fake email address of course, I signed up to find out what the deal really was and I was pleasantly surprised to find that the tools and an ebook were free for the using. He does recommend a few brokers at the end but they are respectable and depositing money is never a requirement to get the strategy and tools.
How Does It Work
After you sign in you will get a link sent to your email address. From there you are sent to page where you can download the MT4 plug in and an ebook outlining hot to set up the indicators and use the strategy. As I said it is based on four indicators. Signals are as follows. First draw Fibonacci Retracements between the most recent low/high or high/low as the case may be. The Fibonacci lines are not signals in themselves but places where you should look for bounces. At that point wait for bounce from one of the retracement lines confirmed by a cross above the simple moving average. The Signal is given when the FD Index and Trend F indicators confirm the bounce and cross.
- A call signal is given when the price action moves and closes above the 10 bar SMA, the FD indicator turns green and the Trend F indicator is moving up.
- A put signal is given when the price action moves and closes below the 10 bar SMA, the FD indicator turns red and the Trend F indicator is moving down.
My Thoughts On The BinaryOptionGain Fibonacci Strategy
I like the strategy, and the fact that it is completely free, but I am not sure that you need to down load his proprietary indicators. For one, the standard Fibonacci Retracement is commonly found on trading platforms across the board, and if it isn’t on yours you can probably get one off the internet. Trading with Fibonacci is very popular and there are lots of other ways to get retracement levels if you can’t put them on your charts. Second, applying a simple moving average to the Fibonacci is good way to begin to set up a signal but again, are commonly found on trading platforms. As for the proprietary indicators, who knows. The FD Index is OK, it turns red and green when it gives a signal but so what. The Trend F indicator looks pretty useful but it also looks just like the MACD. I don’t see why you couldn’t put a MACD on your charts, use a simple moving average with Fibonacci Retracements, forget about the other indicator and still follow his rules. I think his strategy is good, you just don’t need it. There are too many indicators and strategies that are tested by time and trusted by traders around the world. I think in the end this is going to turn around and bite me in the ass with untold amounts of email offers to buy more services.