You can find this extension in the Chrome Web Store. This extension is installed according to the standard method. Then, all you need is to click on the vfxAlert icon. Choose the broker and the way to place the signals (embed or on the top of the page) and click “Open signals”.
Now, let’ look at how to trade with the vfxAlert extension. We will apply two standard indicators — Bollinger Bands and Stochastic.
- Bollinger Bands (BB) will show us whether it is time to open the option. If the BB lines are horizontal, this is flat. The breakout of BB lines will be the binary signal.
- Stochastic will help us to access the balance between buyers and sellers. If the Stochastic is above level 80, this is an end of the uptrend. If the oscillator is below 20, this is the end of the downtrend.
Now, let’s look at the condition when you can open a certain option.
- CALL-option. The price goes away from the lower border of the Bollinger or breaks its middle line from down to up. Stochastic is placed above zero levels or in the overbought zone.
- PUT-option. The price stays within the limits of Bollinger bands or breaks them from up to down. Stochastic also goes down to the oversold zone.
Remember that the Stochastic oscillator rarely goes to the extreme zones. If price and Stochastic start moving in one direction, there is time to open the option.
If the sideways movement lasts too long, after its completion you may see a strong trend reversal. In this case, open the option at the first signs of reversal or, when there is a strong signal.
During the publication of the important news, don’t open the option 30 minutes before the news and 30 minutes after. Use the economical calendar to follow the events!