Binary Options Signals vs Binary Options Indicators
Binary options signals and binary options indicators are tools which a trader can use to enhance his bottom line. However, we noted that most traders are often confused between the terms and tend to interchange the words signals and indicators. These two words do not mean the same thing and in this article, we’ll discuss the differences between binary options signals and binary options indicators .
Definitions
Binary Options Signals is a system that sends trade alerts for the currency, commodity, stock and indices markets. Once you have subscribed to Binary Options Signals, you may be notified on real time with performance trackers, sms, email and advance analysis about the stock price as soon as a potential trade opportunity is spotted.
On the other hand, Binary Options Indicators are statistics used to measure market conditions to project financial or economic trends regarding Binary Options. Binary options indicators are used extensively in technical analysis to predict changes in stock trends or price patterns for a period of time.
Hence, binary options indicators are the signs which show whether an index is going up or down while binary option signals are the alerts and instructions you receive.
Illustration
You can imagine it this way. Let’s say that you visit a doctor for a check-up. The doctor requires you to undergo several physical and laboratory tests. Then, based on the examination, he finds out that you have high blood pressure, a high level of cholesterol and unusual heart palpitations. He tells you that these symptoms are indicative that you might be suffering from heart disease. Then, he provides you with a list of several medicines that you need to take regularly and provides you with instructions about the things you need to do like having a regular exercise and eating non-fat food.
In the example above, the signs and symptoms (e. g. high blood pressure, high level of cholesterol and unusual heart palpitations) can be thought of as the binary options indicators while the instructions and list of medicines can be thought of as the binary options signals.
The types of binary option signals are mainly grouped on how they are received (e. g. sms, email, other forms of notifications) since signals are simple instructions received from a signal provider. On the other hand, since the decision for a binary option depends on the direction of the underlying stock, much of the indicators used in binary options trading are the same indicators used in forecasting the movement of stocks.
How They Look Like
As mentioned, binary option signals may come in the form of sms, emails and the like. They may look like the one below:
On the other hand, binary option indicators may be much complex since it involves charting and technical analysis. There are lots of indicators which traders can use, so knowing which one to use at the proper time and for a given situation is also key in making great forecasts. It may look like this:
Each colored line which accompanies the movement of a stock represents one type of indicator.
Which One To Use
Good news! You don’t need to pick only one because signals and indicators work hand-in-hand. Indicators are the technical analysis while signals are the alerts you receive interpreting and summarizing those analysis for you in the form of simple instructions. Hence, the best scenario is when you use both.