Tools for successful binary options trading

There are many trading tools and indicators for binary options that will help beginners improve their chances of trading profitably. Understanding how they work and how they can improve the likelihood of trade profitability, is to learn and apply to existing trading strategies. Most of the available tools are provided directly by the binary options trading platforms and include features that change the way a regular binary options trading. With the help of traders get more control over their positions. When used properly, they can be a powerful tool and improve the shopping experience of many traders.

 

In addition, there is a huge amount of trade indicators, which can be incredibly useful in providing signals to future price movements. They are often used by independent programs, although there are also available on some trading platforms of binary options. These figures are very popular and well-known tools for charting used by professional traders in a specially designed individual indicators for highly-specialized trade. The importance of all traders for binary options indicators, is their ability to predict future price movements. Trade some of the most popular indicators can provide a great way to accurately identify profitable opportunities.

 

Trade Binary Options Tools: Rollover

Starting a conversation about some of the most popular tools of trade binary options, rollover is one of the most efficient in some certain situations. Rollover allows traders to effectively extend the expiry date of their binary options from the originally set time. This, however, is not a free tool, and usually requires an increase in investment is a percentage of the original. Rollover is a great tool that provides many trading platforms of binary options, but it should be used selectively. Instead of risking an increase in investment, where trade can not, rollover should be used while the position expires "out of the money" requires more time to close successfully. This tool helps to experienced traders who are able to analyze the movement of the market, but it should also be used when there is a good chance that the position becomes profitable, and not as a last chance for the position of being in the moment to lose.

 

Trade Binary Options Tools: Close the position earlier

This is another great shopping tool that can also be used while the binary option is still active. Unlike the rollover, it can be used both in positive and in negative trade situations and as the name implies, it allows traders to liquidate binary option prior to the expiration. Positions can be closed under two circumstances: first, when a trader needs to reduce losses and to close loss-making position and the second to get the early gains that binary options are currently located in the "in the money". The first situation is favorable, if the position of the closure will free up trading funds to purchase other binary options. Binary option can technically become profitable until expiration, and it becomes obvious that the market is likely to have no prospects for recovery.

 

The second scenario will close earlier binary option when the are "in the money" with lower profits than if it was due to expire at the agreed time. The reason for this is that, when continuing to hold the binary option is a risk that it will come out of money before the expiry date. The value of the binary option when you close a profitable position before the period will depend on how much time remains before the expiration, as well as from what is now the price in relation to the initial price. Generally, the higher price and expiration date closer, the more payment.

 

Trade Binary Options Tools: Protection Level

The level of protection - is a feature provided by some brokers to reduce the risk of traders in the market. It offers insurance percentage between 5-15% on all binary option expired "not about the money." This means that from an initial investment of USD 100 can return up to 15 USD, if the transaction fails. Although it seems quite a small amount, it can be the difference between profit and loss in the long term. Moreover, given that many platforms offer up to 85% of the profits, a combination of this with a protection level of 15% implies a very favorable risk reward ratio of one to one.

 

Trade Binary Options Tools: Fundamental Analysis

Fundamental analysis is not an instrument which is directly available on the platform, but it is a useful method of analysis determining the focus of the markets. This analysis uses the basics of which results in the movement of the market, primarily news and interprets this data to determine the level and direction of the impact that they have. Therefore, trading platforms, which provide a live stream of news to help traders in their fundamental analysis. Usually, these events are divided into two groups; News that are planned, for example, the publication of company data, and those that are unplanned. Understanding the potential impact on anything in itself is a tool for the interpretation of the future direction of the price and can be used by traders with great success.

 

Trading Tools Binary Options: Technical Analysis

Technical analysis focuses on chart patterns and indicators to determine trading decisions. Due to its popularity, a lot of them are very useful and are used by both professional and domestic traders binary options. There are a number of graphical models and key indicators, which all traders should be aware of and which may significantly increase the likelihood of success. Some of the most popular and effective are listed below.

 

Trade Binary Options Tools: MACD indicator

This is a very powerful indicator used by many professional traders and is available as a standard feature in any graphics program for analysis. It falls into the category indicator to the pulse, which means that it can function as an indicator of short term market forces. momentum indicators have an amazing ability to predict future price movements, because they are power prices and are excellent tools for use by those who are looking for reversals in prices.

 

The MACD works most effectively as a histogram, or a set of bars that rise above or fall below the central "zero" line. When the bars are raised above, this means positive momentum and negative momentum following forms, which can be interpreted as the price movement in the same direction. Technical method in which this histogram is created - it is the convergence and divergence of two moving averages and then the distance between them.

 

There are several ways to interpret the MACD to find indicators of future price movements based on your trading. One of the most popular strategies for binary options traders - is to look for divergences between the MACD and the current price. An indication of the use of this method is that if the price chart shows a new high, but MACD does not agree with a lower high. At this point, it would be true that buying a binary option in anticipation of falling prices can be profitable deal. On the other hand, trading for the MACD moves above and below when it crosses the zero line, is also a popular way to find profitable trading opportunities.

 

Trade Binary Options Tools: Oscillators

There are a large number of oscillators that are available for binary options traders, and which also fall under the category of momentum indicators. Oscillators are designed to move (or fluctuations) between higher and lower levels, which provide indications of when the market becomes too hot or cold. Typically, oscillators, such as the relative strength index or stochastic oscillator operate on a scale of 0-100 with the top line and the bottom 70 of the indicator line 30. When the price moves above and below, the oscillator will display the index on its scale of 1-100. When the price moves above 70 it is a clear indication to traders that the market may be overbought, signaling that possible price reversal. Similarly, when it moves below 30, the market may be oversold and likely will increase in price.

 

Therefore, the oscillators can provide binary options traders an excellent idea of ​​the future potential of the market direction. Buying binary options either above 70 or below 30, it can be very effective if properly chosen expiry time. Given the high probability of a reversal of the market at these levels, the oscillators is considered one of the most popular indicators, and are standard on all graphic programs.

 

Trade Binary Options Tools: Fibonacci

Fibonacci results of work in all spheres of life in the form of mathematical relationships that would prove the existence of both natural and man-caused in the world. It consists of a set of relationships that govern the rules of nature, from the space between the curls on the snail shell to the masterpieces of Renaissance art.

 

Fibonacci levels can be used at all price charts and more often applied to the most recent high and low (ie price fluctuations) in order to establish where the future price will find support and resistance in this range. In applying the Fibonacci tool on the schedule, it will produce a series of levels based on a percentage of the price fluctuations.

 

Trade Binary Options Tools: Graphical Models

A very important element of technical analysis is the study of price patterns on the charts. This is a huge space with a large number of different models, however, there are several key models that all traders must learn to identify. Price patterns are formed on the charts, and histograms historically supported, indicating future price movement. Some of these models are so powerful that they become self-fulfilling prophecy. This occurs when thousands of traders determine the formation of the picture and simultaneously begin trading, strongly pushing the price in the expected direction and creating a very profitable trading opportunities.

 

As an example, one of the most popular commercial models for binary options traders is a business model of "double top and the valley." Double tops occur, for example, when the price moves to a new high before reversing. After retraction, it will try again to move upwards to maintain the momentum of the market, but forming a lower peak. Generated pattern known as a "double top" due to the fact that the momentum is clearly weakening. The price can not move higher than the first highest peak and is very likely that very soon install a bear market and will push the price below. At the moment it provides an excellent opportunity for traders binary options recognized this model to buy an option to sell.

 

Trade With Candles

After the graphic models, candles are one of the most powerful ways for binary options traders to accurately identify potentially profitable opportunities. All graphics programs have the ability to use graphics candles, and they can provide a much more complete picture of the overall market sentiment. Invented in the 1500s, they are still used by many professional traders today.

 

Candles are formed by the opening and closing price of the bar, forming a candle body color (the color depends on whether the bar closed above or below the opening price). They also have a "wick", showing the upper and lower parts, as well as the daily range of candles. The combination of size and color of the body and wick, will determine the strength and sentiment in the market, as well as indicate how the price is likely to move in the near future.

 

Candlestick Analysis: Absorption Interior candles and Bars

Of all candlestick patterns, some are considered to be the most reliable and form the core of candlestick analysis. This includes the "absorption" of candles and "internal bars." Absorption of candles can be seen in all price charts and on any timeframe. The absorption of the spark plug is described as completely as long as the previous one, which has a lower low and higher high. It tells the trader that either the bulls or the bears have taken control of prices and is very likely to move in the direction of the prevailing candles. These candles are formed with the greatest force at the end of the large price movements, which means a reversal of the trend. Likewise, if they are visible next to the popular support and resistance levels, they increase the compliance level of support.

 

Internal bars, on the other hand, can be seen as wavering bars, as well as reversals. Comparing with the absorption of candles inside bars will not move above or below the previous candle. They are the immediate consolidation when the market decides to move higher or lower and most powerful when multiple indoor bars are found together. In this case, binary options traders can wait for a break above or below, to confirm the short-term trend of the market and the potential for trade.

 

Candlestick Analysis: Falling Stars / Pin Bars

Falling Star, also known as a pin bars in candlestick analysis, perhaps the most popular and profitable template for predicting market reversal. They are determined by a long wick in one direction, which is at least three times longer than the body of the candle. They are most powerful when there are in the key areas of support and resistance, and a long wick shows that the price has been rejected at these levels. "Falling Stars" Spark is a strong indicator of a market reversal when it appears after a strong price movement. For traders binary options, it provides an excellent opportunity to purchase a call or put option in anticipation of a market reversal.

 

Trading in any model of candles is important to know, which is very useful when they coincide with other trading indicators. While popular model candle located in the area of ​​support or resistance, this in itself is a powerful indicator, but the combination of additional indicators always helps to confirm a trading position. An example of this is the combination of candlestick analysis with indicators oscillators, to strengthen the trading decisions. When the candle confirmed that price reversal may be close and if it is supported by the oscillators in prekuplennosti or oversold, it will confirm that the trade is a very high probability of success.

 

result

Binary options platforms offer a wide range of tools for the trader, which will enhance their shopping experience and provide additional profitable trading opportunities. The most popular of these are the rollover function and early closing, which allow trading to be shortened or extended depending on the situation and prospects of the option. In addition, many brokers offer traders protection function, which returns the traders a small percentage of the initial investment, if the option expires "out of the money".

 

In addition to these tools, there are fundamental and technical analysis to help traders make the right trading decisions. While fundamental analysis looks at the main drivers of the market, technical indicators can be applied to the price charts to forecast future changes in price. The oscillators and momentum indicators are among the most popular indicators for binary options traders and combined with candlestick analysis for amplification of these signals, can provide a very powerful trading strategies of binary options.