Originally posted by Michael Hodges. Here is the full review Paint the Town Red Indicator for Binary Options
Why Paint The Town Red Doesnt Suck
This indicator doesnt suck because it is a valid trend following indicator. It is a great way for traders to easily see buy and sell signals if it is used properly. Since it is a trend following indicator it is first necessary to understand trend determination. Once trend is established then signals can be taken in the direction of the trend whenever the corresponding signal is generated. Looking at the chart provided by the indicators creator we can see that 8 bullish and 9 bearish signals are generated in a 24 hour period. The underlying trend isnt given in the example but I hope it was bullish. The bullish win/loss ratio is 5:3, the bearish win/loss ratio is 3:5. This means a bullish trader using this chart should have a 60% win ratio, more than enough to profit using binary options.
My Final Word On Paint The Town Red Indicators
I think this indicator has use for beginning and experienced traders. However, it needs to be used in a package of indicators and not by itself. It is not a strategy, just a tool. Traders also need to have at least a basic understanding of trend and trend determination. Paint The Town Red is a signal generator and not a measure of trend, strength or support/resistance. When used with a multiple time frame
approach and with other corroborating indicators it will provide excellent binary options signals. I recommend this indicator for anyone who appreciates highly visible signals. This indicator will show its true value once you have determined the primary and near term trends, along with potential areas of intra-day support and resistance.