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Sep 01 2021

Best MetaTrader Indicators For Options Trading

metatrader indicators

Several Forex and Binary Options traders spend their time looking for a perfect signal that shows the “buy” or “sell.” While this search may be intriguing, the result always turns out to be the same. 

For most options traders, the assumption that relevant information about a trading instrument is reflected in the market price is encapsulated in technical analysis. This is done by evaluating past market data ranging from the price to volume then looking for classic chart patterns that lead to trading signals.

In other words, the constant evolutions and price fluctuations in the market make it hard to look for market movements without a tool. While there are different types of financial analyses, the most commonly used is technical analysis. 

There are numerous metrics with varying magnitudes used by traders to conduct this analysis efficiently. In this article, we’ve collated the top indicators found on Metatrader.

Bollinger Bands

Bollinger bands are price determinants on a high and low comparative basis. Used as a pair, both the lower and upper bands are in conjunction with a moving average. When the bands are close together in a period of low volatility, it increases the probability of sharp price alteration in either direction. When the space between bands increases, there is corresponding volatility, and any existing trend may close. 

Relative Strength Index

The relative strength index is used to indicate temporarily oversold or overbought market conditions. It is categorized as an “oscillator” since the resulting curve usually fluctuates between the 0 and 100 values. Lines drawn at the 30 and 70 values are warning signals, while those exceeding 85 are highly overbought conditions.

If the line plummets below the 15 mark, a highly oversold state or “buying” signal is generated. When the alert is triggered, the trader has to examine its validity before proceeding with the transaction. 

Commodity Channel Index

The commodity channel index is an options indicator that evaluates the given price compared to the average price level over a specified period. Like the RSI, the commodity channel index is used to identify overbought and oversold levels. 

A base assumption behind its functioning is that assets move in waves, with the highs and lows coming at sporadic periods. At a glance, this indicator shows when either of these cyclic indicators is about to occur. When the prices are way above average, the CCI is relatively high, while when prices are far below their average, the CCI goes to a corresponding low. 

Stochastic Oscillator

First invented in the 1950s, the stochastic indicator generates overbought and oversold signals. It works by comparing the closing price of a security to a range of its prices over a certain period. By adopting a moving average of the result, the oscillator’s sensitivity can be reduced to utilize a 0-100 bound range of values. While a reading of 0 represents the lowest point of the trading range, a 100 value shows the highest point during the designated period.  


The William Percentage Range utilizes the theoretical concept that price is a shadow of market conditions at a given moment. It compares each closing price with the last trading range and determines the possibility of buyers to “stop” the price to the maximum of the range.  

The Williams Percentage Range indicator oscillates between 0 and 100 to provide valuable information about the strength or weakness of a stock, commodity or financial instrument attached to its price. It is common to see the market in consolidation for a prolonged period. Therefore, having an approach to trade ranges is crucial, and this is what encapsulates day trading consolidation with the first Williams percentage rate indicator.


As an alternative to using the first Williams Percentage Range strategy, the WPR2 catches momentum bursts displayed on the chart. Momentum trading strategy can offer immediate gratification, and the second WPR indicator provides a way to satisfy the urge to carry out those transactions. During a strong upward trend, the price will often go to -20 or above. If the indicator plummets and can’t reach the original position before plunging again, that would mean the upward price momentum is at stake, and a more extensive loss is imminent. This same concept also is conversely true for downtrends associated with readings of -80 or lower. 

Shadow Candle Filter

A shadow refers to a line on a candlestick chart that shows price swings relative to the opening and closing prices. These shadows show the highest and lowest prices at which the instrument has traded over a specified period. 

Its length and position can help a trader evaluate the market movement of an asset. While some traders perceive tall or long shadows as an indication that the stock will reverse, a candlestick without a wick indicates no turn of the instrument. 

Final Thoughts

Technical forex indicators are crucial trading tools utilized by MT2Trading to indicate the probability of market movement. These indicators generate signals that help traders make informed decisions regarding the subsequent decision to make.

As an MT2 user, you can take advantage of our Signal Builder feature in order to design, create, and test intensively your own trading strategy, based on the technical indicators mentioned on this article. 

At first glance, technical analysis may seem abstract and difficult to understand. However, a comprehensive trading strategy implemented by MT2Trading coupled with the top technical indicators makes forex trading easy!