Free Binary Options Indicators: How to Choose and Standards for Not Over-Trusting Them

Binary options indicators are perfectly usable for free. The indicators that come built into a trading platform cost nothing extra, and free tools alone are enough to check market direction and whether the market is overheated.

You can use binary options indicators for free

Built-in indicators cost nothing extra

MT5 has 38 built-in technical indicators, divided into four categories: trend indicators, oscillators, volume indicators, and Bill Williams indicators.

The moving average, MACD, Ichimoku Kinko Hyo, RSI, Stochastic Oscillator, and Bollinger Bands, which beginners hear about most often, all come built in. You do not need to look for them elsewhere and add them. You can display them just by choosing from the indicator list.

Free indicators differ by how you get them

Free indicators tend to be lumped together, but the places you can get them fall into three main groups: those that come with the trading platform from the start, those published inside the platform, and those distributed as files by external sites.

Even among those called free, they differ in who made them, whether they are published, whether you can check what is inside, and how much effort it takes to install them. If you know which route the indicator you are about to install came from, you can quickly judge whether it is a tool you can trust.

Where to get free indicators and their characteristics

Built-in indicators and the public library are self-contained inside the platform, so they take little effort to check. Only files distributed by external sites require you to look into who made them and how they are calculated yourself, which adds items to check.

All three are free, but what you need to do before installing is not the same. Find out first which route the one you have came from.

What you can analyze with built-in indicators alone

Indicators for checking direction

The moving average connects the average price over a set period with a line and shows which way the price is leaning. You judge whether the uptrend or the downtrend is stronger from the direction of the line and whether the price is above or below it.

MACD uses the difference between two moving averages to capture changes in momentum and turns in direction. Ichimoku Kinko Hyo uses several lines and a cloud to show whether the current price sits in a position that favors buyers or sellers.

Indicators for checking overheating

RSI turns the share of upward movement in recent price action into a number, and you use it to judge overbought and oversold conditions. The Stochastic Oscillator shows where the current price sits within the range between the high and the low over a set period.

Bollinger Bands draw bands showing the dispersion of price above and below a moving average, and when the price approaches the outside of the bands you can judge that it has gone too far.

Want to know more about RSI settings and how to avoid false signals? Check this article! ▶︎How to Use RSI in Binary Options | Settings and Avoiding False Signals

Combine one indicator of each type

Combining one indicator that shows direction with one that shows overheating lets you check, at the same time, which way the market is leaning and whether that move has gone too far. Once you have these two, you have the foundation for analysis, so you can start making trading decisions without spending any extra money. There will always be times when a judgment is wrong, though, so do not trust indicators 100%. Use them only as reference tools.

Want to know more about how to use each indicator and how to combine them? Check this article! ▶︎Recommended Binary Options Indicators | Combinations and How to Choose for Beginners

How to choose indicators given how many you can display

There is a limit to how many indicators you can place on a chart. Adding more seems like it gives you more to go on, but in practice similar information gets doubled up, the signals contradict each other, and you cannot act.

We recommend limiting what you place to one indicator for direction and one for overheating, two in total. Adding one means removing one you are using now. If you first think about whether what you want to add is more useful than either of your current two, you will make fewer pointless swaps.

Four points to check before installing an externally distributed tool

Does it explain what the signals are based on?

For built-in indicators, the official help describes the formulas and the settings. You can check for yourself under what conditions the lines are drawn and how the display changes when you change a value.

By contrast, with externally distributed tools whose explanation ends with a single line about proprietary logic, you cannot verify the reason when a signal turns out wrong. Without knowing the reason, you cannot decide either to keep using it or to stop.

Does it run on your platform and timeframe?

Before installing, check whether it supports MT4 or MT5. Even when the names are similar, the file formats are different, so it will not work as is.

The same goes for timeframes. Some tools are designed to display only on the 1-minute and 5-minute charts, and if someone who usually trades on the 15-minute chart installs one, nothing will show up. Also check on the distribution page whether any additional setup is required.

Does it fit in the display slots?

When adding to MT4 or MT5, check the supported timeframes and platform conditions. Even when you just want to try one, decide what you will temporarily remove before adding it, and your chart will not fall apart.

What are you asked for in order to receive it?

Even when something is labeled free, it may come with conditions for receiving it, such as registering an email address, registering on social media, or opening an account with a specific broker. The conditions themselves are not the problem. What matters is whether the conditions are stated up front.

There are also cases where, after buying an expensive information product such as a USB drive with analysis tools, people are steered toward trading with an unregistered overseas broker. Free distribution itself is not unusual, so the safe approach is not to download anything that looks suspicious without thinking.

The free signal tool distributed by Bi-Winning

Bi-Winning distributes a signal tool free of charge to people who hold an account. It is an indicator that runs on MT5 and shows entry candidates as arrows on the chart. Applying the four points above to it gives the following.

You can check your own results on the statistics panel

The statistics panel at the top right of the screen shows the total number of signals, wins, losses, win rate, the win rates for BUY and SELL separately, the number of occurrences by quality rank, and the latest signal. The period it tallies can be changed in the settings, and by default it covers the past 24 hours.

Instead of trusting a win rate shown to you by someone else, you can check your own track record yourself. When you are sizing up a tool that is handed out for free, this is the most useful thing to look at.

A notification arrives about 15 seconds before entry

When the conditions are met, a notice arrives about 15 seconds before the candlestick closes. However, it does not always become a signal after those 15 seconds. Use it as a cue to get ready without being glued to the chart.

Notifications support PC notifications, and you can also receive them on your smartphone if you set up your MetaQuotes ID.

Supported assets and conditions for use

The supported assets are the currencies, CFDs, indices, gold, and cryptocurrencies that MT5 can display. The only timeframe is M1, and if the chart is not on M1, no signals are displayed.

Bi-Winning's trading platform does not have MT5, so you open an account with the partner EdgeGraph FX and install the tool on its MT5. The flow is to check the signals in EdgeGraph FX's MT5 and trade on the Bi-Winning trading screen.

Want to know the installation steps in detail? Check this article! ▶︎Bi-Winning Signal Tool Setup: A Guide with Images to Installing It in MT5

Do not expect too much from a free tool

An indicator displays the result of calculating past prices. Even when the same signal appears, there are situations where it works and situations where it does not, depending on market conditions.

There is no rule that paid tools hit and free ones do not. The smart way to use them is to think of them simply as something that adds one more piece of evidence to your decision.

After installing a tool, do not change the settings frequently. Use it under the same conditions for a set period, and then decide whether to keep going. If you keep changing the display, you cannot compare the situations where it worked with those where it did not, and you never find out whether it suits you.

Frequently asked questions

Q1. Is there a difference in calculation results between free and paid indicators?

For indicators whose calculation methods are public, such as the moving average and RSI, the same settings give the same results. The difference between paid and free shows up in usability, such as whether the tool combines several conditions and judges them automatically.

Q2. Can I do analysis with just the built-in indicators?

Yes. Because both a direction indicator and an overheating indicator are included, you can check which way the market is leaning and whether it has gone too far using the built-in ones alone.

Q3. What should I look at when judging an indicator downloaded from outside?

First check three points: whether the basis for the signals is explained, whether it works on your platform and timeframe, and what you are asked for in order to receive it. If the basis is unclear, you cannot verify the results, so do not use it.

Q4. How many free indicators can I display?

The upper limit is set by the platform and the plan you subscribe to. On TradingView's free plan, it is up to two per chart.

Q5. Is it okay to use the free tools that brokers give out?

It is fine to use one if it explains what its display is based on and it runs in your environment. Bi-Winning also distributes a free tool.

Summary

With built-in binary options indicators alone, you can build a foundation for checking direction and overheating. Because there is an upper limit to how many you can display, it is realistic to choose one indicator of each type.

When adding one from outside, check four things: whether the basis for the signals is explained, whether it works in your environment, whether it fits in the display slots, and what you are asked for in order to receive it. Being free is not in itself a reason to choose it.

Bi-Winning distributes a free signal tool. You can use it while checking your own results with arrows, quality ranks, and a statistics panel.