Most reputed brokers offer indicators for traders to base their Call and Put decisions on. Typically, tools offered by most popular brokers include live currency, stocks, indices and commodities data. Many brokers also offer economic calendars that help you make better decisions.
IQ Option offers both the above and more. The tools that IQ Option offers include:
- a database of quotes collected and graphed from over two years ago.
- an additional extension of a month for a candlestick analysis.
- new traders bar charts showing you the minimum and maximum price levels reached in the period
opening and closing prices.
- Parabolic SAR, Awesome Oscillator, MACD, Stochastic Oscillator will further help you make better trading decisions.
When you are trading, you need to make both fundamental data analysis as well as technical analysis. Economic calendars offer South African traders with the tools to better understand the foreign markets they are dealing with. The calendar at IQ Option is generally very intuitive. Traders have access to trends going back two years. These trends, along with the market news that can also be accessed from the navigation panel on the left, gives traders a good idea of possible ups and downs, weaknesses and growths etc.
Further, the IQ Option traderoom is designed in such a way that you can very flexibly arrange and rearrange the page to track one or more assets, some of which may be related.
For example, the Norwegian Krone is a commodity currency that is closely dependent on the movements of Brent Crude Oil. If you are interested in tracking the movements of digital options pairs like the USD-NOK, you will be able to easily and intuitively split the screen into two sections, one showing the movements of USD-NOK and the other showing movements of Brent Crude Oil.
Technical analysis is possible because of the highly sophisticated chart types and graphical tools that IQ Option offers. Let us take a look at the technical indicators offered by IQ Option.
Moving Average (MA)
The MA is a group of indicators that are commonly used to determine current trends. Commonly used averages include the EMA (Exponential), the Simple Moving Average (SMA), the Smoothed Simple Moving Average (SSMA) and the Weighted Average (WMA). Moving averages are also used in indicators like Alligator, MACD and Bollinger Bands.
Bollinger Bands are used to indicate trends. They generally reflect the range of price movements. Many traders use Bollinger Bands to determine the relative price positions within a selected time interval. The bands are also used to identify possible entry points in the market. Traders can also identify correctional wave levels when the price rebounds.
Alligator is an indicator that traders in South Africa can use to assess which way the market is going to move. They can also filter out no-trend periods. It’s a very useful indicator that has cross-functional purposes. It can be applied to all time intervals.
Note that IQ Option lets you zoom in and out of the live graph you’re looking at in different time intervals. The intervals include 2 minutes, 5 minutes, 15 minutes, 30 minutes, 3 hours, 1 day and 30 days.
Relative Strength Index (RSI)
The Relative Strength Index is an indicator that is used to determine how strong the current trend is. It also helps traders find out any potential points of reversal. The RSI compares the absolute asset price growth in a time span with the asset’s total price reduction in that time span.
Moving Average Convergence or Divergence (MACD) is one of the most popular analysis tools for digital options traders. It helps to visualize the ratio of two exponential moving averages. In other words, it tells you how strong a trend is and in which direction it is moving. The MA line is also used to indicate the simple moving average of the MACD values.
The Parabolic SAR is another popular indicator that is founded on the price chart. It is visualized as small dots that tells traders whether the trend is bullish or bearish.
This indicator tells traders the current position of the price as a percentage of the extrema within a selected time period. It helps traders identify the points where the market is likely to reverse.
The Awesome Oscillator is a visualized ratio of a fast and a slow simple moving average line. It is a bar chart that tells you where a trend completes and a new trend develops.
The Average True Range (ATR) tells traders how volatile the asset is within the selected time period. It also tells traders the rate of the quote change.
Average Directional Movement Index (ADX) tells traders how strong the trend is before the price movement begins. Traders use the ADX to identify any potential changes in volatility in the market.
A fractal is a series of five or more bars (Japanese candlesticks) used to display the local minima and maxima of the price curve.
The Commodity Channel Index (CCI) measures the speed of the price movement. It can be used to determine the market reversals approaching.
While moving average indicators and MACD indicators are commonly offered by many brokers and used by many traders. Not a lot of traders have heard of using Fibonacci Lines as a very useful tool in digital options trading.
IQ Option offers a beautifully designed Fibonacci line tool, which you can access from the left navigation panel. It uses retracements to help traders identify trends. Retracements are common in trading, and they take place all the time. IQ Option offers traders the opportunity to use retracements to their advantage.
All of these tools will help traders from South Africa get a better idea of the asset that they are trading in.