The Neon Lightning strategy for binary options is perfect for beginners. Everything is as simple as possible here: no confusing indicators or complex theories - only clear visual signals . An up arrow on a green background appears - we buy a Call option. We see a down arrow on a red background - this is a signal for a Put option.
This approach makes this strategy universal: it is suitable not only for currency pairs , but also for trading stocks, indices and even cryptocurrencies .
Content:
- Characteristics
- Installation
- Overview and settings
- Neon Lightning Trading Rules
- Specifics of application
- Conclusion
- Download Neon Lightning
Characteristics of the Neon Lightning Binary Options Strategy
- Terminal: MetaTrader 4
- Timeframe: M5
- Expiration: 3 candles
- Option Types: Call/Put
- Built-in indicators: Neon Lightning.ex4
- Trading instruments: currency pairs, commodities, cryptocurrencies, stocks
- Trading hours: 8:00 - 20:00 (GMT+2)
- Recommended brokers: Quotex , Pocket Option , Alpari , Binarium
Setting Up a Strategy for Binary Options Neon Lightning
Neon Lightning strategy indicators are installed in MetaTrader 4 in a standard way. First, open the terminal and select “File” → “Open data directory” in the top menu. In the window that appears, go to the MQL4 → Indicators folder and copy all indicator files there.
If the package contains templates, they need to be moved to the templates folder in the root directory of the terminal.
After that, restart the platform so that the new indicators and templates appear in the list. You can watch more detailed instructions in our video:
Review and Settings of the Strategy for Binary Options Neon Lightning
The Neon Lightning binary options strategy is based on one complex indicator. At the same time, most of its parameters are not available for editing, which makes working with it as simple as possible. The user can change only a couple of settings: the code of symbols that are displayed when a signal appears, and the delay value via the LagBar parameter. The indicator does everything else on its own - you just have to follow its prompts.
As you can see in the image below, the strategy signals are displayed as arrows: an arrow on a red background signals the purchase of a Put option, and on a green background – the purchase of a Call. At first glance, everything looks simple and intuitive. However, in real trading, everything is not so clear – it is important to consider the context in which the signal appears, and supplement the strategy with filters to avoid false entries.
If you thoughtlessly open positions for each strategy signal, there is a high probability of getting several losing trades in a row. To improve the accuracy of entries, we will apply a time-tested approach - we will trade only in the direction of the current trend. This simple rule will help filter out weak signals and increase the overall percentage of profitable trades. There is one important question left to solve: how exactly to determine the direction of the trend at the moment the signal appears?
If you are just starting to understand trading and are not yet sure how to correctly determine the direction of market trends, do not worry - we have prepared a selection of useful materials on this topic. Check them out on our website - they will help you understand the basic principles of trend analysis and teach you to confidently determine its direction in real market conditions:
- How does a trend work in the markets?
- Identifying and using bullish and bearish trends.
- Market phase changes .
- How to identify a flat market?
Neon Lightning Trading Rules
To increase the accuracy of entries and reduce the number of losing trades, you can additionally use an exponential moving average with a period of 50. This tool will help determine the priority direction of trading.
Now we will open Call options only if the signal candle closes above EMA(50). And vice versa – we will open deals to buy Put options when the candle with the trading signal closes below this moving average. This approach will help filter out counter-trend deals and focus on more likely entry points.
As you can see, even such a simple filter helps to cut off some of the unsuccessful trades. In the image above, a false signal to buy a Call option is marked with a red cross – it does not meet the conditions, since the signal candle closed below the EMA(50). While the green check mark indicates a correct signal: the candle closed above the moving average, which confirms the upward trend.
As a reminder, the exponential moving average is just one of many tools for determining the direction of a trend. If you want to learn how to navigate price movements, we recommend that you read our article “ The Best Trend Indicators .” It provides a detailed analysis of the 7 most effective indicators that will help you confidently identify market trends and make more informed trading decisions.
Opening a Call Option
- We are convinced that the trend is upward – the candle closed above EMA(50).
- A green arrow appeared.
- At the opening of the next candle we buy Call.

Opening a Put Option
- We are convinced that the trend is downward – the candle closed below EMA(50).
- A red arrow appeared.
- At the opening of the next candle we buy Put.

We recommend setting the expiration time equal to three candles. However, the optimal period for holding positions depends on the specific asset and should be selected by you based on the results of testing on historical data. This approach will help to adapt the strategy to the features of the selected instrument and increase its effectiveness.
Specifics of Using the Neon Lightning Binary Options Strategy
We recommend using the Neon Lightning strategy on timeframes from M5 and higher - this will reduce the number of false signals and make your trading calmer. If the trend filter proposed in the article does not suit you for some reason, feel free to replace it with any other technical indicator that you are used to working with to determine the current market direction. The main thing is to follow the described approach to analysis.
Pros of the Neon Lightning Strategy
The advantages of this strategy include the simplicity of signals and complete accessibility. Any trader can use it, even if he has no experience in binary options trading. Everything is as clear as possible: a signal appears - a deal is opened.
Cons of the Neon Lightning Strategy
Among the disadvantages of the strategy, we note the lack of notifications when trading signals appear - today this is already a basic function, and it is strange that the developers did not provide for it. Another disadvantage is the lack of built-in filters. Because of this, traders will have to use additional technical analysis tools to reduce the number of false signals and increase the overall efficiency of trading using this system.
Conclusion
The Neon Lightning binary options strategy is based on the arrow indicator, one of the simplest and most popular technical analysis tools. The system provides clear trading signals that even a beginner can handle. However, the strategy has its limitations: it does not provide alerts and does not have flexible settings for specific assets, which can cause false signals.
To reduce their number, we recommend using an exponential moving average (EMA) with a period of 50 as a trend filter and opening trades only in the direction of the main trend. Before using the strategy on a real account, be sure to test it on a demo account with a reliable broker. And, of course, do not forget about risk and capital management. Happy trading!
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