While doing some reading recently, I discovered an intriguing and possible useful binary options/forex indicator for Meta Trader 4. The indicator “examines 5bar and 7bar fractals and highlights those which seem to be price reversals”. By utilizing arrows to point out possible reversals, the indicator attempts to indicate price reversals. The indicator is called a “Reversal Fractal” indicator and as most are, it is a lagging indicator. What was most interesting to me about this particular one is how simple and clean it is, yet quite accurate on time frames as low as five minutes. With a little bit of code/rule modification (perhaps from our own community) I think this could prove to be a pretty solid gem.
As you can see it is extremely simple, and can be run on a multitude of different charts simultaneously in order to keep the signals more frequent. Using it is as easy as placing ones trade in the direction of the arrow at the time the signal is given, meaning quite simply: Up arrow signifies a call, while a down arrow signifies a put. I am eager to see what comes of this and have posted it on the Binary Options Edge forums with a download link to the indicator. I look forward to hearing some discussion about this.
I have attached the indicator as a file.