Some inexperienced investors are sure that if the price goes up, soon it falls back. That is why, the successful traders adhere to the specific rules facilitating profit. One of the main conditions of the successful investments is an accurate forecast of the price movements. Therefore, before you invest, you need to carry out a thorough analysis. One of the most wide-spread ways is a technical analysis of the binary option trading which we consider below.

The technical analysis of the binary option trading is also referred to as the chart analysis which means that the price charts and the history of their movements are used to predict the future price movements. The binary options technical analysis is a basic and very important stage of the analysis as it enables to identify the trend type which can be either ascending or descending. To figure out the tendency type and its duration, the financial experts use a great number of tools such as the basic patterns of the technical analysis or indicators.

The technical analysis is the most in demand on the foreign exchange market as the currencies is the most liquid binary option underlying security. Trends or tendencies can be divided into three types: In case of a bullish trend, the price of the underlying rises, so you need to buy CALL options. In case of a bearish trend, the price of the underlying security drops, hence you need to invest in PUT options. If there is a flat trend in the price chart, you should hold back from investments unless you know further price direction for instance, you have insider information etc.

However, the price is rather unstable indicator, and a tendency can quickly turn to another. The other basic term of the technical analysis is volatility which means the price variability or the amount by which the price changes. The stronger the volatility is, the more unstable the price movements are.

The lesser volatility of the underlying is, the more stable the price is.

Technical analysis trading binary options

A great number of rules, criteria and laws have been added to the technical analysis for the past years. The pattern in the technical analysis is a graphic representation of the price movement based a peculiar principle. Hence, if you see what pattern is forming, you can predict further price movement accurately. To foresee future price direction, the experts have developed special indicators.

An indicator is a graphic model signaling when the price changes its direction. The indicators are visualized in on-line charts, so you can just click Indicators and select the indicator you need in the drop-down menu.

Any indicator is based on the trend and other algorithms enabling you to anticipate the short-time price trend accurately. The above mentioned patters and indicators have become the basis of a great number of the binary option investment strategies including a tunneling binary option strategy. Performing the binary option trading technical analysis by means of the price charts, you can sort out what is the current price trend.

Using the main parameters of the chart such as the trend direction, its periodicity and volatility, you can figure out when you should sell or buy binary options.

To make money trading the binary options, use the strategies based on the technical analysis. You can combine several strategies and signals to enhance the reliability of your forecast. The rules of the market used in the past are still relevant today, and they will be the same in the future.

Therefore, if you use the technical analysis, you can predict the future market trends precisely. Analysis of the Binary Options no responses. Binary Options Strategies no responses. As the ingenious, binary options are always simple.

Binary Options 9 comments. Binary Option Brokers 3 comments. Binary Options 2 comments. Binary Options no responses.

DUSAN HAPPEY commented on May 24, I just relying on signals, but it does not work for me so far, I just dont know DUSAN HAPPEY commented on May 17, Hi I am new on this, I am still learning , trying to operate with pair in shot times, Sam commented on May 10, Larryking commented on May 9, Hello my name is larrykimg and I will like you to give me the information about making Larryking commented on May 8, I will like you to give me a opportunity in binary options. Follow the trend is a basic binary options strategy.

Actually, a trend is a basis of many different strategies and of technical analysis as well. Recently, a trading company arranged a competition between binary options traders. According to the terms and conditions of the competition, the winner had to make maximum profit during 2 weeks.

He could achieve this amazing result solely thanks to the follow the trend binary options trading strategy. And the very point of the strategy involves no additional instruments. The only thing you need is to pinpoint the current trend and invest in a binary option based on your forecast.

Follow the trend binary options strategy means no trades during sideways. You can see how the trend lines look like on the charts of AnyOption:. If a current trend continues over 30 to 40 minutes or an hour, there is a strong probability that it will go on 10 to 15 minutes more.

The winner of the competition used this peculiarity. He opened positions for 7 to 10 minutes. Each investor decides what amount he can afford to invest. After you have invested in a binary option, immediately look for the next underlying asset showing a vivid trend, say, a coffee futures contract. The more trades you open, the less the risk is.

Even a vivid trend can be sometimes followed by a price reversal. As you see, multiple profitable trades highlighted in green cover all losses highlighted in red. To look for trends, to open trades, to look for trends again, and to open trades again is meticulous work. This just proves again that following the trend yields a high profit. I used to check trends in indices and stocks as I considered the foreign exchange market unpredictable.

Although follow the trend strategy is reliable, I advise you to always do fundamental or technical analysis to be sure of the trade. If you trade following the trend, I advise you to deal with AnyOption. Also, you can view four charts simultaneously. Besides, trading with AnyOption , you can try the strategy of reducing your risks as this is the only broker that refunds in case of a bad trade.

Posted by OliverPearson 0. Trading the binary options, you need to do an analysis of the price movements. Technical analysis of the binary option trading The technical analysis of the binary option trading is also referred to as the chart analysis which means that the price charts and the history of their movements are used to predict the future price movements.

Let us start learning the basic definitions of the technical analysis and the methods used. This is shown as waves in the charts.

The basic patterns of the technical analysis are as follows: You can see how it works in the real price chart on this website. The most frequently used indicators in the technical analysis are as follows: Leave a Reply Click here to cancel reply. Analysis of the Binary Options.

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The binary options are a unique financial product enabling you to earn on the shares of such well-known companies as Apple, Google, Microsoft, McDonalds, such indices as Dow Jones, NASDAQ…, and commodities like oil, gold, gas and currencies.

Despite the variety of securities, the system of binary options is so simple that even a kid can make money on it! This is really engaging way to make huge money just listening to the news or analyzing charts! A Review of Anyoption. A Review of Grand Option. A Review of 24option. TopOption — Broker Review. Dragon Options — Broker Review. Binary Options Brokers Rating. Popular posts Recent posts Comments. What is a Binary Options?

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Technical Analysis -

DUSAN HAPPEY commented on May 24, I just relying on signals, but it does not work for me so far, I just dont know DUSAN HAPPEY commented on May 17, Hi I am new on this, I am still learning , trying to operate with pair in shot times, Sam commented on May 10, guys a brotherly advice stay the fuck away from this broker they are a fraud and they take Larryking commented on May 9, Hello my name is larrykimg and I will like you to give me the information about making Larryking commented on May 8, I will like you to give me a opportunity in binary options.

Home Binary Options Contact. The Breathtaking Follow the Trend Strategy! Simplicity of the strategy makes it available to anyone. Trend lines on a chart: You can see how the trend lines look like on the charts of AnyOption: How to Select Binary Options Expiration? Below are the screenshots of the trades based on the follow the trend binary options strategy: A Guide for Lazy Investors.