There are some market wisdom that demonstrably have their place. Although we have already cited the phrase «the trend is your friend», just beginners in trading binary options should take this statement to heart. The binary options strategy trend is the simplest way to make money to start with. But how can we recognize binary options trends? The chart analysis gives information on how the price of an underlying security has developed. The trend following strategy, however, is not suitable for short-term trading, but should already display a certain option period basis.
1) Details on Binary Options Strategy trend at a glance
- Easy to learn and suitable for beginners
- Binary Options trends can be defined only over a longer period
- From limits to 60 seconds is not recommended
- Trend following strategy by One Touch trade feasible
2.) Detect a trend: We show you how!
The performance of an underlying security is not static. Whether it is pointing up or down, it always is a jagged line. A trend, however, when the line in spite of the deflections over a period of time having a certain tendency. This trend can be detected when two lines above and extend to each other below the highest and lowest price prior parallel and does not touch the price of the Underlying these lines. If a touch that parallels must be realigned. Does the price development means that the parallels must change the course of direction, we speak of a trend reversal.
Conclusion: When a line despite fluctuations over a certain period has a tendency, it involves a trend. If there is a touch of mutually parallel lines, they must be re-oriented and it is spoken by a so-called turnaround. Charts of CFD and Forex brokers are differentiated and suitable for analysis generally and therefore it is advisable to open a demo account with one of these providers, to interpret binary options trends easier.
3.) Binary Options: rather act in the longer term
Those who want to earn money in a short time, is well advised with the binary options strategy trend. Trend following is based on the analysis of a longer observation period, a trend to 60 seconds limit, makes little sense. The One Touch trade , which provides a option course over several days, is it already the better option. Binary Options trends can be so only over a define extended period. Now the price of an underlying security does not always run in distinct highs and lows. Statically a course is never, but in a few price swings one speaks of a sideways movement. A lateral movement always has a consequence: sooner or later, proposes the price of an underlying security at a direction, it rises or falls. A sideways movement can therefore be a good starting point for a longer-term option if it can be seen in which direction the price will move.
Conclusion: As a trend following based on the analysis of a longer period of a limit (60 seconds) is not to be recommended. The One Touch trade provides an option course over several days and is thus a better alternative.
4.) Amount of profit is already evident at the beginning
Binary options have a clear advantage for investors. Upon completion of the option, the trader knows how high his profit will be the expiry time. Who is Forex, also based on trends, but has the problem that the market is very volatile, and must be careful to get the best possible exit point. For the binary options trend strategy in classic binary options trading, it is known to be sufficient if the direction of prices, not the amount of movement is predicted correctly. During the trading in the forex market, as of EUR / USD, can be nerve-wracking, he is as Trade with a binary option downright relaxed. Especially if the trade takes place over several days, there is no reason to rush to the investor.
Conclusion: When trading binary options is an accurate picture of the traders at the beginning, how high the profit will be the expiry time. In contrast to Forex trading, customers must when trading binary options do not worry about a high volatility and thus get the right exit point. It ranges from a rule, the direction of the price movement to foresee and not the amount of movement.