This is perhaps the most important indicator to be used in this system but, like mentioned earlier, the system should be used as an entire entity in the sense that the signals that are being generated take into account all the indicators.
Pivot targets indicator is going to be used in multiple ways, as described below:
- first thing this indicator shows is the most powerful support and resistance levels and those are going to be used as targets. Under this indicator, the green lines show the support area, and the red lines show the resistance area;
- the second thing to be taken into consideration with this indicator is the time element. Trading binary options without taking into consideration time simply doesn’t work and this indicator helps in doing that. Usually for binary options brokers decide the target (or the expiration date) and what a trader should do is to compare those limits with the pivot targets here. The buy targets are the ones above the daily pivot and the sell targets are the ones below the daily pivot.
If the limits or targets provided by the broker are within the levels provided by the targets this indicator shows, than the option can be traded. If not, we can skip it.
The last thing to consider is the daily range numbers. This indicator gives the daily range and we know what to expect in terms of the range of the day and if price still has enough room to move and hit the expected targets or not.