How to read 5 the most popular indicators on the IQ Option mobile platform (smartphones, tablets): RSI, Bollinger Bands, SMA, Stochastic Oscillator, EMA and technical analysis examples.
Five most popular mobile application indicators and how to use them on smartphones & tablets
All the indicators currently available on the IQ Option platform are here for a reason. Each of them can help you determine the best entry and exit points, maximizing your trading results. However, some are better and more popular than others. Here is a list of the 5 best-known indicators and how to use them.
Some interesting facts: In the picture below you find the participation of indicators based on their popularity among users of the mobile version of the IQ Option application.
EMA – 6.99% on IQ Option mobile application
Another variation on the very famous tool of the moving average. The exponential moving average has the same purpose as SMA. The two curves are calculated slightly differently, but can still be used interchangeably based on personal preference. Identify the trend and use it (as a single tool or in combination with others) to determine the optimal entry points.
RSI – 13.18% on IQ Option mobile application
The strength index relative (RSI) is an oscillator that indicates the momentum, able to supply the trader with signals of purchase and sale. The logic behind the indicator is very simple. When the asset is overbought, the price is generally higher than the price desired by the market and is therefore likely to fall in a short time. On the contrary, when the asset is oversold, its price is lower than that considered “normal”. Therefore, the asset is destined to be appreciated in the near future. RSI can help you determine overbearing and oversold positions.
RSI. How does it work?
SMA – 9.97% on IQ OPTION mobile application
The most basic alteration of the moving average, the simple moving average is perfect to predict the prevailing trend. Sometimes the direction of the trend is not obvious at all. It also happens that a medium-term trend behaves differently than a long-term trend. In these cases, the use of SMA is more than justified. This indicator can also be combined with various types of indicators, in order to generate signals of purchase and sale. More information on SMA.
Moving Average. How does the popular indicator work?
Stochastic Oscillator – 8.56% on IQ OPTION mobile application
The Stochastic Oscillator is a fantastic technical analysis tool, although difficult to master. Being an oscillator type indicator, it does not follow the trend. Rather, it allows you to determine the levels of overbought and oversold (you already know how important it is, right?) There are various types of trading signals that this indicator can generate: crossover, convergence and divergence.
Bollinger Bands – 11.56% on IQ OPTION mobile application
Bollinger Bands are an indicator that tracks volatility. The purpose of the indicator is to indicate the periods of high and low volatility on the graph. Not being designed to be used alone, the indicator can complete the indicators that track the trend or those of oscillator type, contributing to the overall effectiveness of your trading activity. When the market is flat, it is generally difficult to predict the direction of future price movements. Bollinger Bands help you determine the prevailing market phase. It’s pretty well visible on mobile devices like phones and tablets.
As in the example above the indicator consists of a moving average and two bands, above and below the MA. When these bands are far apart, it predicts high volatility. A buy signal is received when the candlesticks cross the bottom band upwards.
A sell signal is received when the chart crosses the upper line downwards. Reversal is detected when the candlesticks cross the moving average in any direction.
Find out more on Bollinger Bands on Wikipedia
Find out more about Stochastic Oscillator
Video: Bollinger Bands – How does the indicator work?
Whatever popular indicators on IQ Option broker you choose, do not forget to study them and apply them correctly. IQOPTION Mobile application is very sophisticated and you can use all popular indicators there. An indicator is only a tool in the hands of a well-trained trader, it is not able to provide surprising results in itself. Apply one of the indicators you discovered today, and combine it with your skills for better results. You can even use it on mobile devices like smartphones or tablets.
And a few words about technical analysis every trader should know.
To use technical analysis you must accept the assumptions on which it is based:
- The market discounts everything.
The first assumption is that all factors that can affect the price are included.
- History repeats itself.
The second is that the formations that occurred in the past will occur in the future. This is based on the assumption that the human psyche does not change and a person will act in a similar way in the future.
- Prices are subject to trends.
The third simply has to be accepted, because the type of technical analysis is based on trend detection.
Source: IQOption blog