RSI is one of the basic indicators that can be combined with many other indicators. Relative strength index can serve as the main indicator or the confirmation indicator with different trading strategies and systems. Relative Strength Index or RSI is an indicator that defines the strength or weakness of a traded asset based on the closing prices in a selected time period. RSI is an oscillator, which means it moves between the levels of 0 and 100. Levels below 30 are considered as oversold conditions and imply that the price should go UP and above 70 are considered as overbought conditions and imply that the price should go DOWN. When trading binary options the RSI Indicator can help the trader to find profitable entry positions for market reversals in the overbought or oversold markets and also to avoid bad trades in direction of continuation of the trends.

Bollinger Bands Indicator and Profits Today is probably the most used indicator for binary options trading by beginners. The indicator provides the information on the relative high and low prices of the traded asset.

It also gives the information about the market volatility. When the bands are close together it implies that the market has the low volatility, and when the bands are wide it implies that the market is more volatile. Beginners strategy of using the bollinger bands is usually to trade reversals on price breakouts out of the bands zone. However, when trends occur the price has the tendency to 'climb' the bollinger band and if consecutive reversals are traded this type of trading can result in many bad trades.

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Directional movement index is displayed with two curves - green showing the strength of the buyers and red showing the strength of the sellers. ADX curve which can be applied onto the DMI indicator is so called average directional movement index and is basically the moving average of DMI indicator. DMI speed is defined with period setting, and the common settings for DMI period are level 14 or 15. If the ADX is above certain level (for example above 40 on 15 period setting) we can expect a trend development. If the ADX is below level 20 for example, we are looking at non-volatile market.

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