How to Read Binary Signals
A step-by-step guide - learn to read every part of a Sweetex AI binary options signal in 5 steps.
Live Example
Here is a real signal from our engine - use it to follow along with the steps below. This is what you see on the Binary Options Signals page.
USD/JOD PUT - the overbought extreme is unanimous across 4 timeframes. RSI 78: moderate overbought. Watch for the first red candle as confirmation. 1H swing expiry - long enough for the reversal, short enough to avoid noise.
Overbought - pullback likely.
Overbought.
Near upper band.
Step 1: Look at the direction
USD/JOD - PUT at 73% confidence. PUT means the engine sees the price as overbought - it has climbed too far, and a drop is likely. Confidence of 73% - decent extreme, a few timeframes agree.
Step 2: Check the expiry - this is the most important part
The expiry is 1H swing. That is how long your trade should last. 1H swing - trade on a 1-hour chart, 1-hour expiry. A longer extreme - this is a bigger reversal pattern. Do not use a 5M signal with 1M expiry - the timing will be off.
Step 3: Review the confirming timeframes
Strong signal, 4 timeframe(s) backing it up: 1M, 5M, 15M, 1H. More timeframes showing the same extreme = the signal is more solid. If RSI is oversold on the 1M, 5M, 15M, and 30M, that is a strong case - price is stretched everywhere. When only one timeframe shows an extreme and the rest are neutral, take it with a grain of salt - it may just be a blip.
Step 4: Read the indicator extremes
RSI 78.3 - deeply overbought. Price shot up too fast - a drop is likely. Stochastic 100.0/100.0 - overbought, backs up the PUT. Bollinger Bands at 87% - price is riding the upper band, room to drop.
Step 5: Apply the risk level to your trade size
Risk level: LOW. Low risk - the extreme is clear, multiple timeframes confirm, nothing is conflicting. Full position size is fine. undefined. Never put more than 1-2% of your account on one binary trade - no signal is a sure thing.
Putting It All Together
A PUT signal with high confidence means the indicators show overbought extremes - you would enter a PUT trade with the expiry from step 2. If only one timeframe confirms or the risk is medium/high, reduce your trade size.
Binary signals are mean-reversion - you are betting the price snaps back after an extreme move. That is the opposite of trend-following. Do not mix them up.
Want to try it? Pick any active pair on the binary signals page.