All indicators, currently available to you on the IQ Option platform, are there for a reason. All of them can help you determine optimal entry and exit points, elevating your trading results. However, some are even better and more popular than the other. Here is a list of the 5 most popular indicators and ways to use them.

RSI — 13.18%
The Relative Strength Index (RSI) is a momentum oscillator, capable of providing the trader with sell or buy signals. The logic behind the indicator is simple. When the asset is overbought, its price is usually higher than the market wants it to be and is likely to decrease soon enough. Conversely, when the asset is oversold, its price is lower that what is considered to be “normal”. The asset, therefore, can be expected to appreciate in the foreseeable future. The RSI can help you determine overbought and oversold positions.
How to set up the RSI indicator
- Choose Relative Strength Index in the list of technical indicators.
- Set the following parameters for the indicator:
- Period – The number of recent candlesticks to use for calculating the indicator values.
- Overbought and Oversold – Horizontal lines in the indicator window that mark the probable overbought and oversold levels (the standard values are 70 and 30).
- The closer the indicator value is to 0, the higher the chance that the asset is oversold and may transition from a falling to a rising trend.
- The closer the indicator value is to 100, the higher the chance that the asset is overbought and there is a possibility of a price reversal from rising to falling.
Want to know more? Read the full article.
Bollinger Bands — 11.56%
Bollinger Bands are a volatility-tracking indicator. The sole purpose of it is to mark periods of high and low volatility on the price chart. Not meant to be used on its own, this indicator can still complement trend-following or oscillator-type indicators, contributing to the overall effectiveness of your trading activities. When the market is flat it is usually hard to predict the direction of the future price movements. Bollinger Bands will help you determine the prevalent market phase.
How to apply Bollinger Bands
- Choose Bollinger Bands in the list of technical indicators.
- Set the general indicator parameters:
- Period – How many recent candlesticks to use for calculating the lines (normally 20).
- Deviation – The standard deviation of the price from the moving average line.
- Choose the display parameters for the upper, lower, and middle lines.
Important: The indicator settings are very simple, but to use it effectively, you need to study the principles of the algorithm in detail.
According to the indicator’s author, you should consider the following SMA values:
- 10 for short-term trading
- 20 for medium-term trading
- 50 for long-term trading
Read more about Bollinger Bands here: “Bollinger Bands” Indicator.
SMA — 9.97%
The most basic alteration of the moving average, the Simple Moving Average excels at estimating the prevailing trend. Sometimes the direction of the trend is not obvious. It also happens that a medium-term trend behaves differently than the long-term one. In those cases, the use of an SMA is more than justified. This indicator can also be combined with indicators of different type for the purpose of providing buy and sell signals. More about the SMA.
Stochastic Oscillator — 8.56%
The Stochastic Oscillator is a great technical analysis tool, yet it is hard to master. Being an oscillator-type indicator, it does not follow the trend. Rather, the Stochastic can help you determine overbought and oversold levels (you already know why it is important, right?). There are several different types of trading signals this indicator will send: crossover, convergence and divergence.
How to use the Stochastic Oscillator indicator
- Choose Stochastic Oscillator in the list of technical indicators.
- Set the following parameters for the indicator:
- Period %K – The number of individual periods to use.
- Smoothing coefficient %K – The level of internal smoothing of the %K line (1 is a fast stochastic oscillator, and 3 is a slow one).
- Period %D – The number of individual periods to use for calculating the moving average of the %K line.
If the indicator lines are below the 20% level, this signals the possible beginning of a reversal to rising. The opposite is true when the indicator lines are above the 80% level.
Not one but two articles to familiarize yourself with the Stochastic:
https://blog.iqoption.com/en/how-to-use-stochastic-and-improve-your-results/
https://blog.iqoption.com/en/using-stochastic-with-support-and-resistance/
EMA — 6.99%
Another variation of the well-known moving average tool. The Exponential Moving Average serves the same purpose the SMA does. Two curves are calculated a little bit differently but still can be used interchangeably depending on your personal preferences. Identify the trend and use (either as a standalone tool or in a combination with other) to determine optimal entry points.
More about the EMA here.
Whatever the indicator you choose, don’t forget to study it and use correctly. The indicator is merely a tool in the hands of a well-prepared trader and is not capable of providing astonishing results by itself. Apply one of the indicators you’ve learned about today to your trading efforts to get better results.
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Tanx.i think it help to trade well for us
Thank you, Suranga!
We are here to assist with any issue and reply all the questions you have.
Collaboration forces teams to be creative and think outside the box 🙂
🙂
Hi Alina Alpeeva,for months now I have been asking myself if I can really trade myself. I have read most of the blogs and compared notes on each of them about trading. Problem is that I still don’t have faith that I can do it. Can I get help someone to trade for me?
Hi!
Joshua, you can trade yourself!
Look, on our platform, it is forbidden to let someone to trade on your behalf.
If you don’t feel sure, just trade on demo as long as you need.
If even in 1 year you don’t feel sure about what you do, leave it.
Trading carries a high level of risk and can result in the loss of all your funds.
hi
Hi, how’re you? Is there anything we can help you with? 🙂
Hi everyone
I live in South afroca and I’m still new to this, for some reason I keep on miss judge the trends. Any advice on how I can improve my skills and knowledge.
I’m still super interested in this.
Hello Zyvior! How are you doing?
First of all we would like to welcome you on the platform, it is nice that you are reading the blogs, it will surely help you understand the platform better. Secondly, it would be wise if you start with our practice account so that you get understanding of the platform as it is exactly the same as the real platform. Also, we have video tutorials which also might be helpful for you to understand the platform better. Also, if some questions occur, you can contact us at support@iqoption.com and our specialists will be glad to assist you further. Best of luck for your trading!
Hi, I’m Williams Jackson. I started my trading without any idea about what i was doing. I kept on messing around with my funds. But until i read this blog, articles and tutorials I’m now improving it my trades…😉😁👍
Hello dear Williams! Thank you very much for your feedback! Good luck in your trading journey 🙂
Please I need the videos on how to set time before trading on binary and fx.
Hi Kate, can you please tell us which country are you from?
For Forex trading, there is no expiration time (pre-set time). You can close the trade anytime you like 🙂
Am new here. Hoping to start trading ASAP but for now I need serious tutorials and someone to help me out Can’t do the learning all by myself . I need someone will be grateful for the help. Thanks
Hello, please never trust anyone and you are welcome to use our practice account as much as you want so that you can have enough understanding of it.
Hello, I am francis from Ghana, Please i have been trying to download your App on my phone but apple stores says the app is not available in my country and i have tried using other alternative to download the app but yet no improvement… please i need help to get the app on my Iphone because i only get to trade when i go to work and its not helping me at all to get a better understanding on how the whole Forex thing works … i really need help
Dear friend, our iOS application is not available in your lovely country at the moment. However, to trade with us, you are welcome to use the web-version or download our application from this page for Android or desktop https://iqoption.com/en/download. Thank you