33 Best Indicators in Pocket Option And How to Use Them to Trade

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Pocket Option is a binary options trading platform that offers its users a variety of features to make their trading experience more profitable.

One of the most important tools available on this platform is the set of indicators that can help traders make better decisions when it comes to their trades.

In this article, we will take a look at all the best indicators in Pocket Option and how to use them for maximum profit.

The first indicator we will look at is the RSI or Relative Strength Index.

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1). Best Indicators in Pocket Option – RSI (Relative Strength Index)

RSI in Pocket Option

This indicator measures the speed and magnitude of changes in prices to help traders determine when a security is oversold or overbought.

The RSI can be used to identify potential buying and selling opportunities, as well as to determine the general trend of a security.

The RSI takes values from 0 to 100 and is calculated using this formula:

Relative Strength Index = 100 – [100/( (Average Gain or Loss for Period/ Average High or Low During Same Period)]

RSI readings over 70 indicate that the stock may be considered “overbought” and that it might be a good idea to sell.

On the other hand, if the RSI is below 30, then this may signal an “oversold” condition which could indicate potential buying opportunities.

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2). Best Indicators in Pocket Option (Stochastic Oscillator).

This indicator is used to measure the relative level of a security’s price in relation to its recent trading range.

The Stochastic Oscillator consists of two lines, %K and %D, which move between 0 and 100 together (but never cross).

These are both plotted on top of one another with their values below or above the center line.

The %K is a momentum indicator that shows where prices have been recently, while the %D represents an area of support/resistance based on recent price action.

Generally speaking, when both lines are above their midpoint (50) it indicates an overbought condition and may signal a possible trend reversal.

Conversely, when both lines are below their midpoint this indicates an oversold condition which could signal a reversal in the current trend.

The best way to use this indicator is by using it to confirm signals generated from other technical analysis tools such as candlestick charts or support and resistance levels.

Stochastic Oscillator

3). Best Indicators in the Pocket Option Platform is the Commodity Channel Index or CCI.

The next indicator we will look at is the Commodity Channel Index or CCI.

This indicator was developed by Donald Lambert and it’s used to measure price momentum as well as overbought/oversold conditions in a security.

The values of this indicator range between -100 and 100, with readings above +100 considered overbought and readings below -100 considered oversold.

The CCI is made up of an average of the current price and two moving averages, which are typically set at 20 periods and 100 periods.

When the indicator moves above +100 or below -100 it is a sign that prices are significantly deviating from their long-term trend and this may signal a possible trend reversal.

The ideal time to buy is when the CCI is in extreme overbought territory (i.e., above +100) would be when it starts showing signs of reversing, such as moving back below zero or making new lows and then rising again.

Conversely, if the indicator falls into extremely oversold territory (i.e., below -100) then it would be a good time to sell as the security is likely to start moving back in the direction of the original trend.

CCI in Pocket Option

4). Best Indicators in the Pocket Option Platform (Bollinger Bands)

Bollinger bands are created by plotting two lines above and below a security’s price.

The middle of these lines represents the security’s average price and the width of the bands is determined by volatility.

When prices move out of the Bollinger band, it is a sign that they are either overextended or too low and this may signal a possible trend reversal.

Bollinger bands can be used in conjunction with other indicators to confirm or deny signals.

For example, if a security is making new highs but the Bollinger bands are contracting, this could be a sign that the trend is about to reverse.

On the other hand, if prices are breaking out of the lower band and the upper band is still expanding, then this could indicate that the uptrend is still intact.

Bollinger Bands in Pocket Option

5). Best Indicators in the Pocket Option Platform (Donchian Channel)

The Donchian Channel is a trading band that consists of an upper and lower line.

It was named after Richard Donchian, who developed it as a way to measure the highest high and lowest low over a given period.

This indicator can be used in conjunction with other indicators such as trendlines or moving averages.

When prices are trading outside of the Donchian Channel, it is a sign that they are trending and this can be used to generate buy or sell signals.

For example, if prices break out above the upper band, then this could be a signal to buy as the trend is likely to continue.

Conversely, if prices break below the lower band, then this could be a signal to sell as the trend is likely to reverse.

Pocket option indicators

6). Best Indicators in the Pocket Option Platform (Moving Averages)

The next indicators we will look at are Moving Averages (MA) and these can be used to identify trends as well as reversals.

There are a number of different types of moving averages but the most common ones are the Simple Moving Average (SMA) and the Exponential Moving Average (EMA).

The SMA is calculated by taking the average of a security’s closing prices over a given number of periods while the EMA takes into account recent price changes more heavily.

When prices are trading above the moving averages, it is typically a sign of an uptrend and this can be used to generate buy signals.

Conversely, prices trading below their moving averages may signal a potential trend reversal and it would be appropriate to place sell orders.

moving averages

7). Best Indicators in the Pocket Option Platform (Fractal)

The fractal indicator is a technical analysis tool that was developed by a Japanese trader, George Lane.

It is used to identify patterns and trends in price movements and can be applied to both stocks and Forex markets.

Fractals are created when a certain pattern is repeated in different time frames.

For example, if the one-hour chart of a given security shows that it has made the same high or low three times in one day, then this could be considered to be a fractal.

The key to using fractals is recognizing when they are complete and often traders will use them together with other indicators such as trendlines, moving averages, or Fibonacci levels.

When a fractal is identified, it can be used to generate buy or sell signals.

For example, if the fractal is bullish, then this could be used as a trigger to enter into a long position.

On the other hand, if the fractal is bearish, it could be used as a signal to go short.

Fractal in Pocket Option

8). Best Indicators in the Pocket Option Platform (Vortex)

The Vortex Indicator is another tool that was developed by George Lane and it is used to identify overbought and oversold conditions.

It does this by plotting two lines, the upper line representing overbought conditions and the lower line representing oversold conditions.

When prices move above or below these lines, they can be used to generate buy or sell signals.

For example, if the upper line is breached by prices moving above it, then this could trigger a long entry order as an uptrend may be forming.

On the other hand, if prices move below the lower line following a breach of this level, this could indicate that they are likely to head further lower.

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This could be used as a signal to place an order for a short position.

9). Best Indicators in the Pocket Option Platform (Moving Average Convergence Divergence)

The Moving Average Convergence Divergence (MACD) is a technical indicator that was developed by Gerald Appel in the late 1970s.

It is used to identify changes in trend and momentum and can be applied to both stocks and Forex markets.

The MACD consists of two lines, the last line and the slow line.

The last line is the difference between a 26-day and 12-day exponential moving average (EMA) of closing prices.

The slow line is calculated by taking the difference between a 12-day EMA and 26-day EMA, which produces an indicator that moves more slowly than the last line. The MACD, therefore, fluctuates above and below the zero line.

When the MACD moves above the zero line, it is considered to be in an uptrend while a move below the zero line indicates that a downtrend is underway.

The MACD can also be used to generate buy and sell signals.

For example, if the MACD is rising and the last line is above the slow line, this may indicate that an uptrend will continue.

If it is not rising or if the MACD falls below zero, this could be used to generate a sell signal.

MACD

10). Best Indicators in the Pocket Option Platform (Accelerator Oscillator)

The Accelerator Oscillator is a technical indicator that was developed by Larry Williams.

It is used to identify overbought and oversold conditions and can be applied to both stocks and Forex markets.

The Accelerator Oscillator consists of two lines, the blue line representing the fast oscillator while the red line representing the slow oscillator.

The blue line is calculated by taking the difference between a 14-period and two-period exponential moving average (EMA) of the fast oscillator.

The red line is calculated by taking the difference between a 34-period and six-period EMA of the slow oscillator.

When prices move above or below the zero level, this indicates that overbought or oversold conditions are present.

The indicator can be used to generate buy and sell signals as well.

For example, if prices move above the zero line following a breach of this level, then an uptrend may have begun while a move back down through the zero levels could indicate that a downtrend is likely to continue.

If prices move below the zero line, this could be used as a signal to place an order for short positions when it appears oversold while moving above the zero level can trigger long entry orders when it appears in an uptrend.

11). Best Indicators in Pocket Option (Alligator)

The Alligator indicator was developed by Bill Williams and is used to identify trend direction, momentum, and potential reversals.

It is made up of three moving averages, the blue line representing the jaw, the red line representing the teeth, and the green line representing the lips.

When all three lines are aligned in one direction (e.g. all moving upwards), this is an indication that the trend is bullish and vice versa when they are aligned in the opposite direction.

The Alligator indicator can also be used to generate buy and sell signals.

For example, if the jaw line (blue line) crosses above the teeth line (red line), then a buy signal is given. Conversely, if the jaw line crosses below the teeth line, then a sell signal is generated.

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12). Best Indicators in Pocket Option (Average True Range)

The Average True Range (ATR) indicator is used to measure volatility and can be applied to both stocks and Forex markets.

It consists of a single line that fluctuates above and below the zero line.

When prices are volatile, the ATR will be high while when prices are stable, the ATR will be low.

The ATR can be used to identify when a security is overbought or oversold.

For example, if the ATR is high and the security is trading near its upper Bollinger Band, this could indicate that it is overbought and may be due to reverse soon.

On the other hand, if the ATR is low and the security is trading near its lower Bollinger Band, this could be an indication that it is oversold.

13). Best Indicators in Pocket Option (Bear Power)

The Bear Power indicator was developed by Alexander Elder and is used to measure the amount of bearish power in an asset.

It consists of two lines, one representing bullish pressure (green line) while the other represents bearish pressure (red line).

When prices are moving up on high volume, this would indicate that there is significant bullish pressure and the green line will be above the red line.

Conversely, when prices are moving down on high volume, this would indicate that there is significant bearish pressure and the red line will be above the green line.

The Bear Power indicator can be used to generate buy and sell signals.

For example, if the red line crosses above the green line, then a sell signal is given. Conversely, if the red line crosses below the green line, then a buy signal is generated.

14). Best Indicators in Pocket Option (Bollinger Bands Width)

The Bollinger Bands Width is used to measure the movement of an asset’s price within its standard deviation.

It consists of three lines, one representing the upper band (red line), another representing the mid-band at the center (blue line), and lastly lower band which represents a 20-day moving average over period (green line).

A 20-day moving average is subtracted from the closing price while a standard deviation of two times that period’s daily true range will be added.

This results in the upper band being at one standard deviation above the mid-band, which itself is set to the centerline or mean.

The Bollinger Bands Width indicator is used to identify when prices are getting too stretched or too compressed.

For example, if the width of the bands decreases significantly, this could be an indication that a reversal is imminent.

15). Best Indicators in Pocket Option (Bull Power)

The Bull Power indicator was developed by Alexander Elder and is used to measure the amount of bullish power in an asset.

It consists of two lines, one representing bearish pressure (red line) while the other represents bullish pressure (green line).

When prices are moving down on high volume, this would indicate that there is significant bearish pressure and the red line will be above the green line.

Conversely, when prices are moving up on high volume, this would indicate that there is significant bullish pressure and the green line will be above the red line.

The Bull Power indicator can also be used to generate buy and sell signals.

For example, if the green line crosses above the red line, then a buy signal is given. Conversely, if the green line crosses below the red line, then a sell signal is generated.

16). Best Indicators in Pocket Option (Envelopes)

The Envelopes indicator is used to measure the volatility of an asset.

It consists of two lines, one representing the upper band while the other representing the lower band.

The distance between these bands will be based on a set number of standard deviations.

For example, if you want to use two standard deviations,

Then the lower band will be set two standard deviations below the center and the upper band will be set at two standard deviations above the center.

The Envelopes indicator is used to generate buy and sell signals when prices touch or go outside of these bands.

For example, if an asset’s price closes inside one of these bands, this would be interpreted as a signal to stay in the trade.

Conversely, if an asset’s price closes outside of these bands, then this would be seen as a sign to get out of the trade.

17). Best Indicators in Pocket Option (Ichimoku Kinko Hyo)

The Ichimoku Kinko Hyo is a technical indicator that can be used to determine support and resistance levels, identify the trend of an asset, measure momentum in a security’s price movement, as well as assist with determining when to enter or exit trades.

It consists of five lines: Tenkan-sen line (blue line), Kijun-sen line (red line), Senkou Span A (green dotted line), Senkou Span B (orange dotted line), and Chikou Span (brown line).

  1. The Tenkan-sen is the conversion of the average of the high and low for the past nine periods into a single number.
  2. The Kijun-sen is the conversion of the average of the high and low for the past 26 periods into a single number.
  3. Senkou Span A is calculated by taking the Tenkan-sen and adding it to the Kijun-sen line, then dividing this total by two.
  4. The Senkou Span B is calculated by taking the Tenkan-sen and subtracting the Kijun-sen line, then dividing this total by two.
  5. The Chikou Span is simply the current closing price plotted 26 periods in the past.

The Ichimoku Kinko Hyo indicator can be used to generate buy and sell signals.

For example, if the Tenkan-sen line crosses above the Kijun-sen line, then a buy signal is generated. Conversely, if the Tenkan-sen line crosses below the Kijun-sen line, then a sell signal is given.

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18). Best Indicators in Pocket Option (Keltner Channel)

The Keltner Channel is a technical indicator that was developed by Chester Keltner.

It is used to measure the volatility of an asset and identify potential support and resistance levels.

The Keltner Channel consists of three lines: an upper line, lower line, and median line.

The distance between these lines will be based on a set number of standard deviations.

For example, if you want to use two standard deviations, then the upper line will be set two standard deviations above the median line and the lower line will be set at two standard deviations below the median line.

The Keltner Channel indicator can be used to generate buy and sell signals when prices touch or go outside of these lines.

For example, if an asset’s price closes inside one of these channels, this would be interpreted as a signal to stay in the trade.

Conversely, if an asset’s price closes outside of these channels, then this would be seen as a sign to get out of the trade.

19). Best Indicators in Pocket Option (Momentum Indicator)

The Momentum indicator is used to measure the speed and magnitude of a security’s price movement.

It is calculated by taking the current closing price and dividing it by the previous closing price.

A value above 100 indicates that the security has been experiencing an uptrend, while a value below 100 indicates that the security has been in a downtrend.

The Momentum indicator can be used to generate buy and sell signals when the value reaches either extreme.

For example, if the Momentum indicator drops below 100, then this would be seen as a sell signal.

Conversely, if the Momentum indicator rises above 100, then this would be interpreted as a buy signal.

20). Best Indicators in Pocket Option (OsMA)

The OsMA indicator is used to measure the difference between the Momentum and Signal lines.

It is calculated by taking the absolute value of the difference between these two lines, then dividing this total by the Sum of the Absolute Values (SUM ABS).

A positive OsMA reading indicates that the security is in an uptrend, while a negative reading indicates that the security is in a downtrend.

The OsMA indicator can be used to generate buy and sell signals when the value reaches either extreme.

For example, if the OsMA line crosses above zero, then this would indicate an uptrend. Conversely, if the signal line crosses below zero, it would be seen as a sell signal.

21). Best Indicators in Pocket Option (Parabolic SAR)

The Parabolic SAR indicator is used to determine the short-term direction of a security’s price.

It can be placed below or above the security’s price chart and is based on either two dots (if it is above) or one dot (if it is below).

These dots will move in an opposite manner to the direction of the security’s price.

For example, if a security is in an uptrend and its price rises, then the dots will move upward as well.

Similarly, if a security is in a downtrend and its price drops, then these dots will also drop downward with it.

A buy signal would be given when the dots are above the security’s price, while a sell signal is given when they are below.

22). Best Indicators in Pocket Option (Price Rate of Change)

The Price Rate of Change indicator measures momentum by taking an asset’s current closing price and dividing it by its prior one-day high value minus one-day low value.

A positive reading indicates that the security is in an uptrend, while a negative reading indicates that it is in a downtrend.

The Price Rate of Change indicator can be used to generate buy and sell signals when the value reaches either extreme.

For example, if the PRC line crosses above zero, then this would indicate an uptrend. Conversely, if the PRC line crosses below zero, it would be seen as a sell signal.

23). Best Indicators in Pocket Option (Schaff Right Cycle)

The Schaff Right Cycle indicator is used to identify bullish and bearish market cycles.

It is based on the Ichimoku Kinko Hyo indicator, which uses a combination of five different indicators to measure momentum, trend, support/resistance, volatility, and price direction.

The Schaff Right Cycle indicator can be used to generate buy and sell signals when the value reaches either extreme.

For example, if the Schaff Right Cycle line crosses above zero, then this would indicate that a bullish market cycle is in place.

Conversely, if it crosses below zero, it would be seen as a sell signal for a bearish market cycle.

24). Best Indicators in Pocket Option (SuperTrend)

The SuperTrend indicator is used to identify when a security’s price is in an uptrend or downtrend.

It can be used to generate buy and sell signals when the value reaches either extreme.

For example, if the SuperTrend line crosses above zero, then this would indicate an uptrend.

Conversely, if it crosses below zero, it would be seen as a sell signal.

25). Best Indicators in Pocket Option (Williams %R)

The Williams %R indicator is used to identify overbought and oversold conditions.

It can be used to generate buy and sell signals when the value reaches either extreme.

For example, if the Williams %R line crosses above zero, then this would indicate an overbought condition.

Conversely, if it crosses below zero, it would be seen as a sell signal.

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26). Best Indicators in Pocket Option (ZigZag)

The Stochastic indicator is used to identify overbought and oversold conditions.

It can be used to generate buy and sell signals when the value reaches either extreme.

For example, if the Stochastic line crosses above zero, then this would indicate an overbought condition.

Conversely, if it crosses below zero, it would be seen as a sell signal.

10 Best Drawing Tools in Pocket Option And How to Use Them to Make Money Trading.

Drawing tools are used in trading to draw a line on the price chart.

These lines can be used to identify support and resistance levels, trends, or patterns in order to generate buy/sell signals for entries and exits.

Drawing tools are usually composed of multiple dots or continuous lines that move up or down with the security’s price action.

For example, if a security’s price is in an uptrend, then these dots/lines will also be moving up.

Conversely, if a security’s price is trending downwards, then these dots/lines will drop downward with it.

Some of the best drawing tools that you can use in Pocket Option include: –

27). Best Drawing Tools in Pocket Option (Horizontal Line)

The Horizontal Line tool is used to draw a line at a specific price level on the chart.

This can be used as a support or resistance level, or to identify a trendline.

When the security’s price reaches this line, it will generate either a buy or sell signal.

28). Best Drawing Tools in Pocket Option (Vertical Line)

The Vertical Line tool is used to draw a line at a specific time on the chart.

This can be used as an entry or exit point,

Or to identify key times in order to generate buy/sell signals.

29). Best Drawing Tools in Pocket Option (Fibonacci Retracement)

The Fibonacci Retracement tool is used to draw a line on the chart at key areas of support and resistance.

It can also be used as an entry or exit point, or to identify key times in order to generate buy/sell signals.

30). Best Drawing Tools in Pocket Option (Fibonacci Fan)

The Fibonacci Fan tool is used to draw a line on the chart at key areas of support and resistance.

It can also be used as an entry or exit point,

Or to identify key times in order to generate buy/sell signals.

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31). Best Drawing Tools in Pocket Option (Trend Line)

The Trend Line tool is used to draw a line on the chart at key areas of support and resistance.

It can also be used as an entry or exit point, or to identify key times in order to generate buy/sell signals.

32). Best Drawing Tools in Pocket Option (Parallel Channel)

The Parallel Channel tool is used to draw a line on the chart at key areas of support and resistance.

Just like the other drawing tools, it can also be used as an entry or exit point, or to identify key times in order to generate buy/sell signals.

33). Best Drawing Tools in Pocket Option (Rectangle)

The Rectangle tool is used to draw a line on the chart at key areas of support and resistance.

33). Best Drawing Tools in Pocket Andrew’s Pitchfork)

The Andrew’s Pitchfork tool is used to draw a line on the chart at key areas of support and resistance.

Conclusion.

These are some of the best drawing tools that you can use in Pocket Option to help you make money trading.

Each tool has its own unique uses and benefits, so be sure to experiment with each one until you find the ones that work best for you.

Remember, the key to success is to use these tools in conjunction with each other and with your own analysis of the security’s price action.

Good luck!


*Disclaimer:

The information provided does not constitute a recommendation to carry out transactions. When using this information, you are solely responsible for your decisions and assume all risks associated with the financial result of such transactions.
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Kenn Omollo is an investment writer and a business management consultant at Joon Online Limited. Reach him at - kenn@joon.co.ke

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