In the world of trading choosing the right trading tool or an indicator can significantly improve your trading results. In this article, I have listed the top five high-quality indicators or you can say the Top 5 Best Indicators for Pocket Option that can significantly improve your trading skills and help you identify upcoming trends and reversals.
How to add indicators on the Pocket Option
Pocket Option is a beginner-friendly platform and therefore, you can use the indicators and trading tools for free in the demo account. In order, to access the indicators and trading tools firstly, you need a Pocket Option account, In case you don’t have one click here. Next, set your default chart as candlestick lastly, click on the indicator button at the top of the page.
Best Indicators for Pocket Option
1> Moving Average
Moving averages are the top-notch indicator widely used by traders worldwide due to their simplicity and effectiveness. If you are trading for a while you must have seen the presence of the moving average indicator in multiple trading tools such as RSI, Stochastic & more. The most commonly used Moving average indicator is EMA or SMA.
2> Relative Strength Index
RSI or Relative Strength Index is another one of the most popular trading indicators developed by J. Welles Wilder Jr. This indicator uses a moving average which oscillates around overbought and oversold levels. When the indicator line is below the oversold level it signals an upcoming bullish trend and vice versa, when the indicator line is above the overbought level it signals an upcoming bearish trend.
3> Parabolic SAR
Parabolic SAR is another one of the most popular trading indicators. You can identify the upcoming trends and reversals using the Parabolic SAR dots when the indicator dots are above the price it signals an upcoming bearish trend and vice versa when the indicator dots are below the price it signals an upcoming bullish trend.
4> Bollinger Bands
Bollinger Bands is a trend indicator traders use to identify upcoming trends and reversals. The indicator was created by John Bollinger in 1980 and made from the composition of three bands named middle band, upper band, and lower band where the middle band is a 20-period simple moving average whereas the upper band is calculated by adding standard deviations to the SMA and lower band is calculated by subtracting the two standard deviations from the SMA.
5> Stochastic Oscillator
A stochastic oscillator is a popular trend indicator which helps traders to identify upcoming trends and reversals using the overbought and oversold levels. This indicator is made from the two moving averages line that oscillates around line 20-80. when the two moving averages line intersects below 20 it signals an upcoming bullish trend and vice versa, when the two moving averages line intersects above line 80 it signals an upcoming bearish trend.
